Pfizer to scoop up stake in French vaccines group Valneva

Pfizer has agreed to pay €90.5mn for an 8.1 per cent stake in Valneva, in a move that will bolster the French vaccines group’s Lyme disease programme.

The US pharmaceutical group on Monday said it would buy the stake at a price of €9.49 a share — a 26 per cent premium to Valneva’s closing price on Friday of €7.50 — via a reserved capital increase.

The proceeds will go towards developing a Lyme disease joint programme, the terms of which were revised by the two drugmakers.

Valneva will fund 40 per cent of the remaining shared development costs, compared with 30 per cent previously. Pfizer will pay Valneva tiered royalties of up to 22 per cent, which will be complemented by up to $100mn in milestones payable to Valneva based on sales, the companies said in a statement.

“Pfizer’s investment in Valneva highlights the quality of the work that we’ve done together over the past two years and is a strong recognition of Valneva’s vaccine expertise,” said Valneva chief executive Thomas Lingelbach in a statement.