Vaccine companies Valneva SE (Nasdaq:VALN) (Euronext Paris:VLA) and LimmaTech Biologics AG announced on Thursday a strategic partnership and licensing agreement for the development, manufacturing and commercialisation of Shigella4V (S4V), a tetravalent bioconjugate vaccine candidate against shigellosis.

Under the agreement Valneva has acquired an exclusive global licence for S4V.

The deal includes an upfront payment of EUR10m to LimmaTech as well as potential regulatory, development and sales-based milestone payments and low double-digit royalties on sales.

Shigellosis, a diarrhoeal disease caused by Shigella bacteria, affects millions worldwide, particularly children in developing countries. Currently, no approved Shigella vaccine exists.

Valneva will now lead the vaccine's development, including Phase 2 clinical trials, while LimmaTech will continue to be involved in the Phase 2 studies. The global market for a Shigella vaccine is estimated at over USD500m annually.