Saint-Herblain (France), the 18 august2022 – Valneva SE (Nasdaq: VALN; Euronext Paris: VLA), a vaccines company, today announced that the United States Department of Defense (“DoD”) has decided not to exercise the second annual contract option1 for the supply of its Japanese encephalitis (JE) vaccine IXIARO®.
Given the past and current impact of the COVID-19 pandemic on DoD operations, DoD considers its existing supply levels of IXIARO® are sufficient to meet current needs. The DoD has expressed interest in negotiating a new supply contract in 2023, once inventory returns to normal levels. The Company does not foresee any impact of this decision on its financial forecast for 2022 and will continue to deliver IXIARO® through the fourth quarter of 2022, pursuant to the terms of the first annual option, which the DoD exercised under previously amended terms2. The DoD relies on IXIARO® since 2010 to help protect personnel deployed to areas where JE is endemic and for whom the JE vaccine is recommended.
The total minimum value of the existing supply contract was approximately $118 million, assuming the exercise of the second annual option, which had a minimum value of approximately $36 million for 250,000 doses.
Thomas Lingelbach, Chief Executive officer of Valneva, said, “We thank the DoD for this partnership and look forward to further contract negotiations in the future. At the same time, we continue to see a significant recovery in the private travel market for IXIARO®which increased more than three times in the first half of this year compared to the first half of 2021.”
To about japanese encephalitis
Japanese encephalitis is a deadly infectious disease that occurs mainly in Asia. About 70,000 cases of Japanese encephalitis are reported each year in Asia, but this number is underestimated, particularly in view of the difficulties of accounting in rural areas. Japanese encephalitis is fatal in about 30% of people who show symptoms and causes, in half of survivors, irreversible brain damage. The disease is endemic in Southeast Asia, a region with a population of 3 billion. In 2005, an outbreak of Japanese encephalitis in Nepal and India’s Uttar Pradesh region killed more than 1,200 children in a month.
To in relation to Valneva SE
Valneva is a company specializing in the development and marketing of prophylactic vaccines against infectious diseases generating significant medical needs. Valneva has a highly specialized and targeted approach and uses its expertise in different modes of vaccination to develop prophylactic vaccines to fight against these diseases. The Group has leveraged its expertise and infrastructure to successfully commercialize two vaccines and to rapidly advance a wide range of vaccine candidates in clinical development, including its vaccine candidates against Lyme disease, COVID-19 and Lyme disease. chikungunya.
| contacts Media and Investors Laetitia Bachelot-Fontaine VP Global Communications & European Investor Relations M +33 (0)6 4516 7099 [email protected] | Joshua Drumm, Ph.D. |
Important Information
This press release contains certain forward-looking statements relating to Valneva’s business, including with respect to the outlook for future contracts. Furthermore, even if the actual results or development of Valneva are consistent with the forward-looking statements contained in this press release, such results or developments of Valneva may not be indicative of the future. In some cases, you can identify forward-looking statements by words such as “could”, “should”, “expect”, “anticipate”, “believe”, “intend”, “estimate”, “aim “, “target” or similar words. These forward-looking statements are based largely on Valneva’s current expectations as of the date of this release and are subject to a number of known and unknown risks and uncertainties and other factors that could cause actual results, actual performance or achievements will differ materially from any future results, performance or achievements expressed or implied by such forward-looking statements. In particular, Valneva’s expectations could be affected by, among other things, uncertainties related to vaccine development and manufacturing, unexpected clinical trial results, unexpected regulatory actions or delays, competition generally, currency fluctuations, the impact of the global and European credit crisis, and the ability to obtain or maintain patent or other intellectual property protection. Given these risks and uncertainties, there can be no assurance that the forward-looking statements made in this release will actually be realized. Valneva is providing the information in this press release as of the date hereof and disclaims any intention or obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events or for other reasons.
1 Valneva signs a new contract worth up to $166 million with the US government for the supply of its IXIARO® vaccine
2 Valneva: the US Department of Defense exercises the first annual option of the IXIARO® contract
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