Why Are Valneva Shares Rallying Today

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  • Pfizer Inc PFE will invest €90.5 million ($95 million) for an 8.1% stake in Valneva SE VALN, as the companies updated the terms of agreement for Lyme disease vaccine candidate VLA15.
  • Pfizer will buy the stake in Valneva at €9.49/share via a reserved capital increase.
  • Valneva will use the proceeds from Pfizer's equity investment to support its Phase 3 development contribution to the Lyme disease program.
  • Related: Valneva - Pfizer Post Encouraging Data From Lyme Disease Vaccine Candidate
  • Valneva and Pfizer also updated the terms of their collaboration and license agreement announced in April 2020.
  • Under the revised deal, Valneva will now fund 40% of the remaining shared development costs compared to 30% before.
  • Pfizer will pay Valneva tiered royalties ranging from 14% to 22%. 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.
  • Price Action: VALN shares are up 83.88% at $25.21 during the premarket session on the last check Tuesday.
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