(Boursier.com) — Valneva fell 1% to 3.77 euros this Friday in Paris, while the company specializing in vaccines announced its turnover and cash flow for the 2023 financial year and gave preliminary indications on product sales and ‘R&D’ expenses expected in 2024. The total turnover of Valneva was 153.7 million euros in 2023, compared to 361.3 million euros in 2022. Total revenue in 2022 included 280 million euros of revenue related to COVID-19 vaccine supply agreements. 19.
Product sales reached 144.6 million euros in 2023 compared to 114.8 million euros in 2022. Exchange rate fluctuations had a negative impact of 2.8 million euros on product sales . Sales of COVID-19 vaccines in 2023 amounted to 7.7 million euros compared to 29.6 million euros in 2022. Excluding sales of COVID-19 vaccines, product sales reached 138 .9 million euros in 2023 compared to 85.2 million euros in 2022, an increase of 63%.
Sales of IXIARO/JESPECT were 73.5 million euros in 2023 compared to 41.3 million euros in 2022. The 78% increase in sales is mainly due to the continued recovery of the traveler market, as well as ‘to price increases. The increase in IXIARO/JESPECT sales includes a negative impact of 1.5 million euros due to exchange rate fluctuations.
DUKORAL sales were 29.8 million euros in 2023 compared to 17.3 million euros in 2022. This 72% increase is also due to the significant recovery of the private traveler market and price increases. Exchange rate fluctuations had a negative impact of €0.9 million.
Revenue from the distribution of third-party products reached 35.7 million euros in 2023 compared to 26.5 million euros in 2022, an increase of 34% mainly due to sales of Rabipur/RabAvert and Encepur under the distribution agreement with Bavarian Nordic.
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Other Income, including income from collaborations, licenses and services, was 9.1 million euros in 2023 compared to 246.5 million euros in 2022. Other Income in 2022 included 280 million euros in advances non-repayable loans released following the settlement agreement concluded with the British government and other non-repayable advances from Member States of the European Union, these being partially offset by €45.9 million negative income resulting from an increase in reimbursement obligations following the modification of the collaboration and licensing agreement with Pfizer on VLA15.
The Group’s cash position was 126.1 million euros as of December 31, 2023 compared to 289.4 million euros as of December 31, 2022. The cash position at the end of 2023 included the drawing of a total of $100 million under the of the loan signed with Deerfield & OrbiMed, as well as significant payments made to Pfizer in 2023 as part of the Phase 3 “VALOR” study conducted by the two companies on Lyme disease. This cash flow, however, excluded the $103 million in proceeds from the sale of the PRV in January 2024.
Perspectives displayed
Product sales are expected to be between €150 million and €180 million in 2024 subject to the availability of IXIARO and third-party products, as well as the sales performance of IXCHIQ during the vaccine launch year in UNITED STATES. 2024 sales are expected to reflect continued sales growth of the company’s existing products (IXIARO, DUKORAL), a decline in sales of third-party products linked to supply issues and the first sales of the IXCHIQ vaccine.
Other Income is expected at levels similar to 2023 and other operating income is expected between 95 million and 105 million euros, including the sale of PRV for 95 million euros in early 2024. The company expects expenses of ‘ R&D’ between 65 million and 90 million euros, mainly supported by investments in preclinical ‘R&D’ programs and ongoing clinical development activities for the chikungunya vaccine.
On the analyst side, Portzamparc has revised upwards its 2024 turnover expectations taking into account the group’s guidance, from 280 to 299 ME. Enough to raise its target price from 11 to 12.4 euros. – Goldman Sachs is ‘neutral’ on Valneva with a target reduced from 4.80 to 4.30 euros.
For Bryan Garnier, “Although no surprises have been announced, we note that the momentum of recovery of the travel market since COVID-19 is accelerating, which has benefited the company’s commercial portfolio (this is (i.e. most especially Ixiaro, Dukoral and third party products). All eyes are now on the US CDC’s ACIP (Advisory Committee on Immunization Practices) which will take place later this month and whose The result will be important for the sale of Ixchiq in the United States,” said the analyst. “Furthermore, we reiterate that Valneva’s primary value driver lies in its Phase 3 VLA15 (Lyme disease) trial which we believe to be significantly less risky and which generates upside potential to current share price performance.” . Verdict: “BUY aiming for 9 euros”.