The laboratory had bet on a vaccine with more traditional technology than that of messenger RNA vaccines.
The group is developing an anti-Covid vaccine using more traditional technology than that used by messenger RNA vaccines from Pfizer/BioNTech and Moderna (AFP / JUSTIN TALLIS)
The Franco-Austrian laboratory Valneva fell more than 10% on the stock market Monday morning after detailing the financial consequences of the suspension of production of its anti-Covid vaccine, a decision announced this summer.
“Given the reduction in the volume of orders from the European Commission, Valneva has suspended production of the vaccine,” the group confirmed in a statement released Friday evening. Valneva, which had already been part of this decision in July, this time detailed the financial consequences. The group has ended its partnership with the German IDT Biologika, the subcontractor which produced the active substance of the vaccine, and must compensate it up to around forty million euros.
An expensive suspension
In the middle of the morning, the title of Valneva lost 10.62% to 7.25 euros after having unscrewed by more than 12% earlier in the first exchanges. The group is developing an anti-Covid vaccine using more traditional technology than that used by messenger RNA vaccines from Pfizer/BioNTech and Moderna, at the heart of vaccination campaigns in promising countries.
Valneva, whose vaccine is notably approved in the European Union (EU) and the United Kingdom, has long bet on the fact that this more traditional technology would find its place by convincing some of the vaccine-skeptics reluctant to messenger RNA vaccines . But the United Kingdom and the EU realized that their vaccine stocks were largely sufficient and terminated their contracts.
The EU, however, partially reversed this decision during the summer, announcing that it only worked to reduce the amount of its missing order. But this reduction turned out to be drastic – 1.25 million doses against 60 million originally planned – and forced Valneva to suspend production.
“Valneva has started to deliver the doses (…) to the European member states that have ordered the vaccine”, namely Germany, Austria, Denmark, Finland and Bulgaria,” the group said on Friday. ” At the same time, the company is continuing its discussions with other governments around the world, with the aim of selling approximately eight to ten million doses of the remaining stocks in international markets in the next six to twelve months.