Pfizer Inc (PFE)

[DewDiligence]

PFE buys 8% stake in VALN—companies_amend_terms_of lyme-vaccine program:

https://finance.yahoo.com/news/valneva-pfizer-enter-equity-subscription-050000479.html

Pfizer will invest €90.5 ($95) million in Valneva, representing 8.1% of Valneva’s share capital at a price of €9.49 per share, through a reserved capital increase to further support the strategic Lyme partnership between the two companies. The per share purchase price was determined based on the average closing price of the Company’s Shares on Euronext Paris during the 10 trading days preceding the date of the Equity Subscription Agreement.

…In addition, Valneva and Pfizer updated the terms of their collaboration and license agreement which they announced on April 30, 2020. Valneva will now fund 40% of the remaining shared development costs compared to 30% in the initial agreement. Pfizer will pay Valneva tiered royalties ranging from 14% to 22%, compared to royalties starting at 19% in the initial agreement. In addition, 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.

PFE plans to start the phase-3 trial for VLA15, the lyme-vaccine candidate, in 3Q22.

VLA.PA is +28% in Paris today.