Valneva partners with Pfizer to boost clinical development of VLA15

By Vinisha Joshi  | Date: 2022-06-21

Valneva partners with Pfizer to boost clinical development of VLA15

Valneva SE, a vaccine company specializing in the development & commercialization of prophylactic vaccines, has reportedly inked an Equity Subscription Agreement with Pfizer Inc. The acquisition seeks to introduce a couple of changes to its Collaboration & License Agreement for Lyme disease vaccine candidate VLA15.

The recent move follows Pfizer’s announcement in April 2022 regarding its plans to commence the Phase 3 study of VLA15 in Q3 2022.

Under the Equity Subscription Agreement, Pfizer has agreed to invest $95 million in Valneva, showcasing 8.1% of the latter’s share capital for $9.99 per share, by boosting reserved capital to further encourage the Valneva-Pfizer Lyme partnership.

Anticipated to close on June 22, 2022, the per-share purchase price of the equity investment was decided based on the average closing price of Valneva’s shares on Euronext Paris over a 10-day period prior to the Equity Subscription Agreement.

Speculations have it that Valneva plans to use the capital influx from Pfizer’s equity investment to back the Phase 3 development – a part of the Lyme disease program.

Beyond the equity investment, Pfizer and Valneva have also updated the terms of their collaboration and license agreement, which was initially announced on April 30, 2020.

As a part of the updated agreement, Valneva will now increase the remaining shared development costs from 30% - which was agreed upon in the initial deal – to 40%. 

Meanwhile, Pfizer will pay tiered royalties to Valneva within a range of 14% to 22%, which was earlier set to start from 19% in the 2020 agreement.

Additionally, these royalties will be complemented with milestone payments of up to $100 million depending on the cumulative sales reported by Valneva.

Beyond this, the agreement remains intact with no changes to early commercialization milestones and other developments with $168 million remaining and a $25 million payment to Valneva, which will be transferred after Pfizer begins the Phase 3 study.

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Vinisha Joshi

Vinisha Joshi

As a qualified Engineering graduate, Vinisha Joshi takes pride in playing with words. Presently, she pens down insightful articles on business, core industry, technology, and the like for Thisisourtownrichmond in addition to other platforms. Creativity comes naturally...

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