By Chris Wack

 

Valneva SE shares were up 85% to $25.31 after Pfizer Inc. said it will invest $95 million in Valneva, representing an 8.1% share in Valneva's share capital.

The companies also said they have entered into an equity subscription agreement and updated the terms of their collaboration and license agreement for the VLA15 Lyme disease vaccine candidate.

Valneva said it is planning to use the proceeds from Pfizer's equity investment to support its Phase 3 development contribution to the Lyme disease program.

Valneva will now fund 40% of the remaining shared development costs compared with 30% in the initial agreement. Pfizer will pay Valneva tiered royalties ranging from 14% to 22%, compared with royalties starting at 19% in the initial agreement.

The royalties will be complemented by up to $100 million in milestones payable to Valneva based on cumulative sales. Other development and early commercialization milestones are unchanged, of which $168 million remain, including a $25 million payment to Valneva upon Pfizer's initiation of the Phase 3 study.

Pending successful initiation and completion of the planned Phase 3 study for VLA15, Pfizer could potentially submit a Biologics License Application to the U.S. Food and Drug Administration as early as 2025.

Valneva shares hit their 52-week low of $13.71 Friday.

 

Write to Chris Wack at chris.wack@wsj.com

 

(END) Dow Jones Newswires

June 21, 2022 10:36 ET (14:36 GMT)

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