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By Giulia Petroni
Valneva SE’s shares continue to trade higher on Tuesday following news that U.S. peer Pfizer Inc. has agreed to acquire a stake in the French vaccines company.
The deal is set to support an already existing partnership between the two companies to develop VLA15, the only vaccine candidate currently under clinical development against Lyme disease, a bacterial infection that can be spread to humans by ticks.
At 0907 GMT shares trade 16.2% higher, and are up 52% on the week.
Under the agreement, Pfizer will invest 90.5 million euros ($95 million) to acquire 8.1% of Valneva’s shares, becoming a key shareholder in the company. The funds will be used by Valneva to finance its now 40% share of the development costs of the Phase-3 development of VLA15.
“If this move showed the increased confidence of Pfizer in the potential of this project, it could also be seen as a first step before a potential take-over of Valneva,” Bryan Garnier analyst Jean-Jacques Le Fur said.
Write to Giulia Petroni at giulia.petroni@wsj.com
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