(News Bulletin 247) – The laboratory is renewing its annual outlook, after returning to profit in the first half. Valneva expects to benefit from a recovery in travel and the first sales of its vaccine against chikungunya.

A rare company to publish its half-yearly accounts in the middle of August, Valneva confirms that it has turned the page on the disappointment caused by its Covid-19 vaccine

The laboratory has indeed returned to profit in the first half of the year. Between January and the end of June, Valneva indicates having made a net profit of 34 million euros compared to a loss of 35 million euros a year earlier.

This clear improvement in the laboratory’s accounts is linked to the proceeds from the sale, at the beginning of the year, of a priority review voucher granted by the Food and Drug Administration (FDA), the American health authority. Sold for an amount of 103 million dollars or 95 million euros, this voucher related to the Ixchiq vaccine against chikungunya, this disease transmitted by mosquitoes.

This sale also benefited the group’s cash flow. At the end of June 2024, it stood at 131.1 million euros, compared to 126.1 million euros at the end of December 2023.

First sales of Ixchiq in the United States

In the second half, Valneva expects a “significant decline” in its cash burn, the company says it has “completed its contributions to contractually predefined R&D expenses for the Phase III study (the last stage of clinical trials before possible commercialization) on Lyme disease”, a systemic infection caused by a bacteria transmitted to humans by ticks.

On the business side, Valneva reported a slight 3.9% decline in revenue to €70.8 million, including €68.3 million in sales of proprietary products. The group said its sales over the period were impacted by supply constraints for Ixiario, its Japanese encephalitis vaccine, and products marketed for third parties.

2024 objectives renewed

However, the company remains confident about sales momentum for the full year. This confidence is supported by a continued recovery in sales for travelers but also in particular the ramp-up in sales of Ixchiq, its vaccine against chikungunya.

This vaccine has already been authorized for sale in the United States for people aged 18 and over since the end of 2023. The company recorded 1 million euros in sales for this vaccine during the first half of 2024.

In Canada, the company expects to sell the first doses of Ixchiq during the fourth quarter, and it plans to deliver the first doses to Europe also during the same quarter.

Valneva is therefore renewing its objective of achieving overall sales of between 170 million and 190 million euros in 2024, including sales of proprietary products of between 160 million and 180 million euros.

The company also renews its objective for Research and Development spending, which is still expected to be between 60 million and 75 million euros, and will be dedicated to the chikungunya and Zika programs, as well as to the advancement of preclinical programs.

On the Paris Stock Exchange, these announcements were well received. Valneva shares took the lead on the SBF 120, thanks to a 4.4% increase to 3.208 euros, around 10:55 a.m. after a peak of 10.9% in early trading.

For Kempen analysts quoted by Reuters, the company’s “main asset, the vaccine candidate against Lyme disease” could help support the stock in the long term. As a reminder, Valneva and Pfizer are jointly developing a vaccine candidate against this systemic infection caused by a bacteria transmitted to humans by ticks.

And subject to positive Phase III data, Pfizer intends to submit a marketing authorization application (MAA) to the US health authority, the Food and Drug Administration (FDA), and a marketing authorization application to the European Medicines Agency (EMA) in 2026.