U.S.-listed shares of Valneva soared 81.9% in premarket trading on Tuesday, the day after Pfizer Inc. announced a $95 million equity investment in Valneva as part of a previously established agreement aimed at developing a Lyme disease vaccine. The investment is expected to support the Phase 3 clinical trials for the Lyme disease vaccine candidate, which are set to begin in the third quarter of this year. The companies also announced other changes to the licensing agreement, including upping Valneva’s development costs to 40% from 30% and Pfizer paying royalties from 14% to 22% instead of 19%. Valneva also qualifies for up to $100 million in milestone payments if and when the vaccine is approved. Pfizer said it expects to submit an application for approval in the U.S. “as early as 2025.” Valneva’s stock is down 75.3% this year, while the broader S&P 500 has declined 22.9%.
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