VALN - Valneva climbs 86% after Pfizer stake for Lyme Disease vaccine

The ADRs of Valneva (NASDAQ:VALN) added ~86% in the pre-market Tuesday as the French vaccine maker extended gains following an equity investment from U.S. pharma giant Pfizer (PFE) as part of their collaboration for a vaccine against Lyme Disease. Per the terms, Pfizer (PFE) bought ~9.5M of Valneva (VALN) shares for $95M indicating an ownership stake of 8.1%. Valneva (VALN) plans to use the proceeds to fund its contribution to the Phase 3 development program for the Lyme disease vaccine candidate. The companies have also agreed to revise the terms of the initial agreement. According to the updated terms, Valneva (VALN) has increased its share of remaining development costs to 40% from 30% and agreed to 14% – 22% royalties compared to 19% in the initial deal. Valneva (VALN) came under pressure recently amid concerns over the future of its experimental COVID-19 shot.

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Valneva climbs 86% after Pfizer stake for Lyme Disease vaccine