Pfizer has agreed to pay 90.5 million euros for an 8.1 percent stake in Valneva, a move that will support the French vaccine group’s Lyme disease program.
The U.S. pharmaceutical group said on Monday it would buy the shares for 9.49 euros per share, a 26 percent premium to Valneva’s closing price of 7.50 euros on Friday, by setting aside a capital increase.
Proceeds will be used to develop Lyme Disease Joint Programwhose terms were modified by the two drugmakers.
Varneva 40% of the remaining shared development costs will be funded, compared to 30% previously. Pfizer will pay Valneva tiered royalties of up to 22 percent, in addition to milestone payments of up to $100 million based on sales, Pfizer said in a statement.
“PfizerThe investment in Valneva underscores the quality of the work we have done together over the past two years and is a strong endorsement of Valneva’s vaccine expertise,” Valneva CEO Thomas Lingelbach said in a statement.