Shares of Valneva plunged 20 per cent on Monday after the French drugmaker said its Covid-19 vaccine agreement with the European Commission was being scrapped and it may have to rethink its financial guidance.
Valneva said the commission had informed the company of its intent to terminate an advance purchase agreement for its Covid vaccine, which is currently under regulatory review by the European health regulator.
Valneva’s share price was down 20.2 per cent at €9.51, a one-year low in afternoon trading.
"The EC decision is regrettable especially as we continue to receive messages from Europeans who are looking for a more traditional vaccine solution," chief executive Thomas Lingelbach said in a statement.
Valneva’s vaccine relies on technology that has been used for decades, including in some shots against polio, influenza and hepatitis. It signed a deal with the commission last November to supply up to 60 million doses of vaccine over two years, including 24.3 million doses in 2022.
The agreement gave the commission the right to cancel the deal if the vaccine was not cleared for use by the European Medicines Agency by the end of April.
It has not yet been given the green light by the agency. Last month, the agency sought additional information on the vaccine for the second time. On Monday, Valneva said it had responded to the latest request in early May.
Based on the terms of the agreement, Valneva has 30 days from May 13th to win marketing authorisation or propose an acceptable remediation plan, the company said. – Reuters