Valneva will receive a $130 million upfront payment from Pfizer under its Lyme vaccine collaboration agreement. The companies entered a collaboration at the end of April 2020 to develop and commercialize Valneva’s Lyme disease vaccine candidate VLA15, which is currently in Phase II clinical studies.

Under the agreement, Valneva and Pfizer will work together throughout the development of VLA15. Valneva is eligible to receive a total of $308 million cash payments including the $130 million upfront payment, $35 million in development milestones and $143 million in early commercialization milestones. Valneva will fund 30% of all development costs through completion of the development program and Pfizer will pay Valneva tiered royalties starting at 19%. Pfizer will lead late-stage development and have sole control over commercialization.

VLA15 is the only active Lyme disease vaccine program in clinical development, and covers six serotypes that are prevalent in North America and Europe. The program was granted Fast Track designation by the U.S. FDA in July 2017. Valneva has completed patient enrolment and follow-up for VLA15’s two Phase II studies in more than 800 people and expects to report first results in July 2020.