Valneva's Covid-19 vaccine contract with Europe collapses to just a fraction of the original deal
The European Commission on Wednesday announced that it would only purchase 1.25 million doses of Valneva’s newly authorized Covid-19 vaccine, after originally purchasing 60 million doses.
The EC first sent a notice of intent to terminate the purchase agreement back in May, as the regulatory review of Valneva’s vaccine stalled. In late June, the European Medicines Agency recommended Valneva’s shot for the primary vaccination of adults, but the company warned that its supply deal might be dead in the water.
“The Valneva vaccine is adding another option to the broad EU vaccine portfolio, and thanks to our Health Emergency Preparedness and Response Authority, we are providing the possibility to those Member States who so wish to offer also this vaccine to citizens,” Stella Kyriakides, EU commissioner for health and food safety, said in a statement.
France-based Valneva’s stock shares (EPA: $VLA) plunged almost 10% Wednesday, and are down more than 60% year-to-date on the Paris stock exchange.
The purchase of 1.25 million doses also comes with the option to purchase an equivalent quantity later this year for delivery in 2022, the company said, adding:
The first vaccine doses will be delivered to participating EU Member States (Germany, Austria, Denmark, Finland and Bulgaria) in the coming weeks. Valneva will retain inventory for potential additional supply to these EU Member States should demand increase and, in parallel, will aim to deploy approximately eight to ten million doses of remaining inventory into international markets. Given that VLA2001’s shelf life is expected to reach up to 24 months over time, the Company will aim to deploy these doses in the next six to twelve months.