U.S. healthcare giant Pfizer (PFE.N) has agreed to invest 90.5 million euros ($95.24 million) to buy an 8.1% percent stake in French vaccines company (VLS.PA), as the companies announced developments in their partnership to tackle the Lyme disease.

Pfizer will buy the stake in Valneva, which is also working on its COVID-19 vaccine, at a price of 9.49 euros per share, via a reserved capital increase.

U.S. healthcare giant Pfizer (PFE.N) has agreed to invest 90.5 million euros ($95.24 million) to buy an 8.1% percent stake in French vaccines company (VLS.PA), as the companies announced developments in their partnership to tackle the Lyme disease.

Pfizer will buy the stake in Valneva, which is also working on its COVID-19 vaccine, at a price of 9.49 euros per share, via a reserved capital increase.

As previously announced on April 26, 2022, Pfizer plans to initiate the Phase 3 study of VLA15 in the third quarter of 2022, they added.

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, added the companies.