Why Are Valneva Shares Rallying Today

Pfizer Inc PFE will invest €90.5 million ($95 million) for an 8.1% stake in Valneva SE VALN, as the companies updated the terms of agreement for Lyme disease vaccine candidate VLA15.
Pfizer will buy the stake in Valneva at €9.49/share via a reserved capital increase.
Valneva will use the proceeds from Pfizer's equity investment to support its Phase 3 development contribution to the Lyme disease program.
Related: Valneva - Pfizer Post Encouraging Data From Lyme Disease Vaccine Candidate
Valneva and Pfizer also updated the terms of their collaboration and license agreement announced in April 2020.
Under the revised deal, Valneva will now fund 40% of the remaining shared development costs compared to 30% before.
Pfizer will pay Valneva tiered royalties ranging from 14% to 22%. In addition, the royalties will be complemented by up to $100 million in milestones payable to Valneva based on cumulative sales.
Other development and early commercialization milestones are unchanged, of which $168 million remain, including a $25 million payment to Valneva upon Pfizer's initiation of the Phase 3 study.
Price Action: VALN shares are up 83.88% at $25.21 during the premarket session on the last check Tuesday.