No, it is not for its prospects in the development of a vaccine against Covid-19 that the Pfizer laboratory is interested in biotech Valneva, it hardly needs it, he who was the first to deliver doses to fight the pandemic. But rather in the context of the research work that the two partners are carrying out in the treatment of Lyme disease.
Pfizer will thus acquire 8.1% of the capital of Valneva, for an amount of 90.5 million euros. The operation, announced at a price of 9.49 euros per share and which will be effective on June 22, shows a premium of around 20% compared to the last quoted price. It will be done through a capital increase reserved for the American laboratory. On the stock market, Valneva logically climbed 20% this Monday morning in the very first exchanges.
Adjusted chords
Valneva plans to use the proceeds from this investment to fund part of its contribution to Phase 3 of their program, which Pfizer expects to launch in the third quarter. As such, the French company and Pfizer have amended their collaboration and license agreement concerning this vaccine candidate, VLA15. Valneva will now finance 40% of Phase 3 costs, compared to 30% in the initial agreement concluded in April 2020. For its part, the American will pay Valneva increasing royalties ranging from 14% to 22%, against royalties starting to 19% initially planned.
The royalties will be supplemented by milestone payments of up to $100 million, payable to the biotech based on cumulative sales. The other payments related to the development stages and the start of commercialization remain unchanged, ie 168 million dollars, including a payment of 25 million to Valneva at the initiation of Phase 3 by Pfizer.
Systemic infection
Last February, the two partners announced positive Phase 2 results for their vaccine candidate, paving the way for the use of a three-dose primary vaccine regimen in a Phase 3 clinical study in elderly participants. 5 years and over.
Lyme disease is a systemic infection caused by bacteria transmitted to humans by ticks. It is now considered the most common vector-borne disease in the northern hemisphere. According to a study published on June 13, 2022 in the scientific journal BMJ Global Health, Lyme disease has infected 14.5% of the world’s population. Its first symptoms (acute rash or other lesser ones such as fatigue, fever, headache, neck stiffness, arthralgia or myalgia) are often ignored or misinterpreted, recalls Valneva. In the event of late or inadequate treatment, the infection can lead to severe articular (arthritis), cardiac (carditis) or central nervous system complications.