(Valneva) Shares of Valneva SE jumped more than 83% on Tuesday following news Pfizer will invest €90.5 million or $95 million in the company.
Valneva said that the deal involved an Equity Subscription Agreement. The investment by Pfizer represents 8.1% of Valneva’s share capital for 9.49 euros per share.
The purchase price was based on the average closing of Vaneva on Euronext Paris during the 10 trading days before the date of the agreement.
Valneva will use the proceeds of Pfizer’s equity investment for its Phase 3 development contribution to the Lyme disease program.
Valneva and Pfizer also updated the terms of their license agreement and collaboration, which dates back April 30, 2020. Valneva will be required to fund 40% of the remaining shared development costs, compared to the previous 30%.
Under the updated terms, Pfizer will pay Valneva tiered royalties ranging from 14% to 22%, compared to the previous 19%.
The equity deal is set to close on June 22, 2022.
VALN: NASDAQ is up +83.66%.
