Valneva Q1 2024 Financial Results and Corporate Updates

Valneva SE, a specialty vaccine company, has announced its financial results for the first quarter of 2024, alongside key corporate updates. The company's total revenues reached €32.8 million for this period, with product sales contributing €32.1 million. Despite minor fluctuations, Valneva's sales performance remained stable compared to the same period in 2023. The company anticipates that its annual revenue will align with its guidance, aiming for total revenues between €170 million and €190 million by year's end.

Valneva's cash position significantly improved, standing at €176.6 million, aided by the €95 million proceeds from selling a Priority Review Voucher (PRV). This sale also contributed to a substantial net profit of €58.9 million for the quarter. The first quarter also saw a dramatic improvement in the company’s operating profit, which was recorded at €68.2 million, compared to a loss of €16.6 million in the previous year.

The company's commercial portfolio includes three travel vaccines: IXIARO®/JESPECT®, DUKORAL®, and IXCHIQ®. Sales for IXIARO®/JESPECT®, a Japanese encephalitis vaccine, were slightly lower at €16.6 million due to earlier supply constraints, which have since been resolved. DUKORAL®, a cholera and ETEC-diarrhea vaccine, saw a 10% sales increase to €11.3 million, benefiting from a robust recovery in the private travel markets. The newly introduced chikungunya vaccine IXCHIQ® started its sales journey, recording €0.2 million in initial sales.

Valneva's R&D efforts remain strong, with significant investments planned for ongoing and new projects. The company has confirmed that its single-shot chikungunya vaccine, IXCHIQ®, has been recommended by the ACIP and adopted by the U.S. CDC. Regulatory processes for this vaccine are ongoing in Europe, Canada, and Brazil, with decisions expected within the year. The company is also advancing its Lyme disease vaccine candidate, VLA15, in collaboration with Pfizer. The Phase 3 study is progressing, with primary vaccinations expected to be completed soon and topline data anticipated by the end of 2025.

Additionally, Valneva has initiated a Phase 1 clinical trial for its second-generation Zika vaccine candidate, VLA1601. This trial aims to investigate the safety and immunogenicity of the vaccine, enrolling approximately 150 participants aged 18 to 49 in the United States. The results are expected in the first half of 2025.

Financially, Valneva reported an adjusted EBITDA profit of €73.0 million for the first quarter, a significant improvement from the €12.3 million loss in the same period last year. The company's costs of goods and services sold were €22.2 million, with a gross margin on commercial product sales of 43.9%. Research and development expenses decreased slightly to €13.1 million, while marketing and distribution expenses increased to €11.3 million due to the launch activities for IXCHIQ®.

General and administrative expenses also saw a rise to €11.7 million, primarily due to higher costs related to stock-based employee compensation, recruiting charges, and digitalization initiatives. The net finance expense for the quarter was €9.3 million, driven by foreign exchange losses and increased interest charges.

Valneva's cash flow from operating activities showed a net use of €28.4 million, while investing activities generated €86.7 million, mainly from the PRV sale. Financing activities resulted in a net cash outflow of €7.5 million. By the end of the first quarter, Valneva's cash and cash equivalents stood at €176.6 million, a significant increase from €126.1 million at the end of 2023.

In summary, Valneva's first quarter of 2024 demonstrated solid financial performance and significant progress in its vaccine development programs, positioning the company for continued growth and advancement in the field of infectious disease prevention.