New $59 million Ixiaro contract with US government for Valneva

French biotech firm Valneva (Euronext: VLA), a leading pure play vaccine company, today announced the signing of a new contract with the US government Department of Defense for the supply of its Japanese encephalitis (JE) vaccine Ixiaro, with the news sending the firm’s shares up 6.9% to 3.70 euros.

Under the terms of the agreement, Valneva will supply Ixiaro doses to the Defense Logistics Agency of the US Department of Defense, through 2019 and the beginning of 2020 with a value of $59 million guaranteed and potentially worth up to $70 million. A delivery schedule is being prepared and supply shipments will commence immediately.

“We are pleased to continue our important collaboration with the US government to fight this deadly disease. The US military has been using Ixiaro since 2010 and we are excited to further support the expansion of its use and help protect military personnel and their families from Japanese encephalitis,” commented Valneva’s chief business officer Franck Grimaud.