USA – US pharma giant Pfizer has agreed to invest 90.5 million euros (US$95.2 million) to buy an 8.1% percent stake in Valneva as the companies announced developments in their partnership to tackle the Lyme disease.

Pfizer is set to buy the stake in Valneva, which is also working on its COVID-19 vaccine, at a price of 9.49 euros (US$10) per share, via a reserved capital increase.

Shares in Valneva rose sharply, surging by 14.5% in early session trading to 9.09 euros (US$9.6), as per news agency Reuters.

Lyme disease is a tick-borne disease caused by a bacterium, Borrelia burgdorferi. VLA15 is currently the only vaccine candidate in clinical development for the disease.

The multivalent, protein subunit vaccine uses a mechanism that targets the outer surface protein A (OspA) of the bacteria. This blocks the bacterium’s ability to leave the tick and infect humans.

Valneva is also working on a COVID-19 vaccine, VLA2001, which was authorized for use in the United Arab Emirates in May.

There is currently no available vaccine for Lyme disease, the tick-borne infection that, while rarely fatal, can leave patients with debilitating side effects for months.

Last week, the company announced it had signed a settlement deal with the UK government over the termination of the supply agreement for the vaccine candidate.

There is currently no available vaccine for Lyme disease, the tick-borne infection that, while rarely fatal, can leave patients with debilitating side effects for months.

A previously available shot was discontinued by the manufacturer after disappointing consumer demand. Pfizer and Valneva expect to initiate their late-stage, or Phase 3, trial this year.

Valneva will use the proceeds from Pfizer’s equity investment to support its Phase 3 development contribution to the Lyme disease program.

Rejigged agreement terms

Valneva and Pfizer also updated the terms of their collaboration and license agreement which they announced on April 30, 2020 for the Lyme disease vaccine candidate VLA15.

“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.

As previously announced on April 26, 2022, Pfizer plans to initiate the Phase 3 study of VLA15 in the third quarter of 2022, they added.

The proceeds from the transaction under revised terms will be channeled towards Lyme disease vaccine development program.

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 US$100 million in milestones payable to Valneva based on cumulative sales, added the companies.

Valneva’s pharmaceutical pipeline includes the COVID-19 and Lyme disease vaccines, as well as one for chikungunya.

Furthermore, it has two commercial vaccines for travelers, including Ixiaro for Japanese encephalitis, and Dukoral for cholera.

Valneva is also developing a vaccine for the Zika virus, as part of a partnership with Emergent BioSolutions, according to Biospace.

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