Valneva warnings on European COVID-19 contracts

Shares of Valneva (Euronext: VLA) on Monday dropped by as much as 28%, after the French specialty vaccine maker warned over prospects for its COVID-19 vaccine, VLA2001.

The company noted that, following receipt of the European Commission (EC)’s notice of intent to terminate the Advance Purchase Agreement (APA), Valneva proposed a remediation plan, which is now subject to further discussion within the EC and among the participating member states.

Some member states have confirmed their interest in having an inactivated, adjuvanted whole-virus vaccine solution in their portfolio. However, the preliminary, unofficial volume indications received from the EC would not be sufficient to ensure the sustainability of Valneva’s COVID-19 vaccine program. This would also impede the future development of the program beyond the current product profile.