(AOF) – Valneva gained more than 4% to 12.35 euros after the publication of a stable quarterly turnover and the confirmation of its annual objectives. Over the first three months of the year, biotech posted a net loss of 26 million euros against a loss of 27.7 million a year earlier. The loss on adjusted Ebitda reached 13.3 million against a loss of 28.3 million a year earlier.
Turnover fell by 6% to 21.8 million. It includes 16.2 million product sales (compared to 16.1 million a year ago) including 3.8 million from the first sales of the Covid vaccine.
The cash position as of March 31, 2022 was €311.3 million, with up to an additional $40 million made available in April 2022 as part of a volume increase from the existing financing with the American funds specialized in the health sector Deerfield and OrbiMed (including $20 million subject to the approval of VLA2001 by the EMA expected in the second quarter of 2022).
The company confirmed its forecast for total revenue for 2022 within the range announced in February (between 430 million and 590 million euros).
However, Valneva adds that, given the uncertainties over the timing of product deliveries, the breakdown of sales by revenue category could differ from the figures announced in February.
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Key points
– Specialist in the development of prophylactic vaccines against infectious diseases with limited therapeutic options;
– Business model: portfolio of diversified vaccines for the general public, financing of clinical developments by a specialized infrastructure, 2 commercial vaccines (Ixiaro and Dukoral against Japanese encephalitis and cholera) and vaccine distribution rights for third parties;
– Capital held at 15.07% by the Grimaud la Corbière group, 8.78% by the British MVM Life Science and 8.20% by BPI France, Frédéric Grimaud chairing the five-member supervisory board and Thomas Lingelbach chairing the management board ;
– Solid balance sheet with €449m in equity against €196m in debt, reinforced by net cash of €347m in cash.
Challenges
– Medium-term strategy to pursue the development of the Ixiaro and Dukoral vaccines to finance its R&D, to extend the manufacturing network (3 sites, in Scotland, Sweden and Austria) and partnerships promoting the group’s assets;
– Innovation strategy inherent in the business model, supported by 85 M€ of R&D investments, with 3 main assets and 3 preclinical programs: the only vaccine in clinical development against Lyme disease / the only single injection vaccine against chikungunya / the only inactivated and adjuvanted whole virus COVID-19 vaccine currently in clinical trial in Europe / candidate vaccines against human metapneumovirus, parvovirus and norovirus;
– Environmental strategy for the regular reduction of environmental impacts;
– Good visibility of the activity thanks to the agreements with Pfizer to co-develop and market a vaccine against Lyme disease for $308 million, with the American authorities for the vaxin Ixiario against Japanese encephalitis ($70 million), with Bavarian Nordic for the marketing and distribution of specialized vaccines, with Batavia Biosciences for the development of an inexpensive vaccine against polio, with the Butantan Institute for a vaccine against chikingunya for low-income countries.
Challenges
– Sensitivity to the results of studies of vaccines against Lyme disease (launch of phase 3 to 3
th
trimester) and against chikingunya (successful phase 3);
– Outcome of discussions with the European Commission on the supply of the anti-Covid vaccine (already sold in Bahrain) with 350 to 500 M€ in revenue expected for 2022, and with the United Kingdom;
– Rise in sales of vaccines against Japanese encephalitis and cholera;
– 2022 target, excluding Covid vaccine: turnover of €80 to €105 million, of which 75% for vaccines and 25% for revenue from collaborations or services, and R&D expenditure of between €65 and €75 million.
Oncology supports laboratory performance
Oncology generated $163 billion in revenue in 2021 (out of an industry total of $613 billion), up 11.9%, according to GlobalData. Its average annual growth has reached 15.4% over the past twenty years. This segment, which is increasingly competitive, is dominated by a few heavyweights such as MSD (Merck & Co. Inc), Roche, BMS
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immuno-oncology, the specialty that has been driving this market for ten years, supports research. GlobalData estimates that this segment could reach 180 billion in 2026. The major players are looking to strengthen themselves in this niche. Pfizer recently acquired Canadian biotech Trillium Therapeutics for $2.3 billion. Following this operation, the American group got hold of two promising molecules in the treatment of blood cancer.