Valneva signs $42 million Ixiaro supply contract with US government

French biotech firm Valneva (Euronext: VLA), a leading pure play vaccine company, revealed today the signing of a $42 million contract with the US government's Department of Defense for the supply of its Japanese encephalitis (JE) vaccine Ixiaro.

Under the terms of the agreement, Valneva will supply Ixiarodoses to the Defense Logistics Agency (DLA), supply center of the US Department of Defense for a total value of $42 million over a two-year period (a base year and an option year). First deliveries are expected to commence in the coming weeks. Valneva’s shares rose 6.1% to3.48 euros following the news.

JE is a very serious and growing public health threat in Asia. The US Department of Defense has been using Ixiaro to protect the near 360,000 US military and civilian personnel, and their families, working and living in endemic countries since 2010.