ROME: Italy's state agency Invitalia said on Tuesday it would invest 81 million euros ($98.20 million) in local biotech company ReiThera to support the development of its COVID-19 vaccine.

Most of the money, some 69,3 million euros, will go directly on research and development while around 12 million will be used to expand the ReiThera vaccine production site, close to Rome.

ReiThera is developing the vaccine with Germany's Leukocare and Belgium's Univercells and started talks with the European Union in September about supplying the bloc with doses. The initial trial gave encouraging results.

The company aims to produce some 100 million shots of its vaccine per year.

Invitalia will buy a 30% stake in ReiThera, Tuesday's statement said.