As part of a joint effort with Valneva, Pfizer has agreed to invest $90.5 million ($95.25 million) in an 8.1% share in the company to accelerate the development of a Lyme disease vaccine.

Valneva VLA +26.98 percent (VLAN.France) will be purchased by the American pharmaceutical giant for €9.49 per share, according to a statement.

Since January, Valneva’s shares have lost about 62% of their value; but, on Monday, they gained 15.6% in European trade. Since the beginning of 2022, Pfizer (NYSE: PFE), which manufactures one of the most frequently used Covid-19 vaccines, has lost more than 21%. A Covid vaccination is also being developed by Valneva.

With Pfizer’s $2.00 percent investment, the French company plans to support its involvement in Lyme disease vaccine VLA15 Phase 3, which is expected to commence in the third quarter of this year.

Ticks carrying the Lyme disease bacterium may carry it to people. Pfizer has confirmed that VLA15 is the only vaccine candidate now in clinical development for the disease.

A partnership and license deal for VLA15, first announced in April 2020, was revised as part of the investment agreement between Pfizer and Valneva. Valneva has agreed to cover 40% of the remaining shared development expenditures, compared to 30% in the original agreement, which is a significant increase.

Pfizer will also pay tiered royalties of up to 22% to Valneva, as well as milestone payments of up to $100 million dependent on sales, according to the companies.

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