- The stock price of Valneva SE (NASDAQ: VALN) fell by over 35% pre-market today. This is why it happened.
The stock price of specialty vaccine company Valneva SE (NASDAQ: VALN) fell by over 35% pre-market today. Investors are responding negatively to Valneva SE announcing that it has received a termination notice from the UK Government (HMG) in relation to the Supply Agreement for its COVID-19 vaccine candidate VLA2001.
The contract offers HMG the right to terminate. And HMG has alleged that Valneva is in breach of its obligations under the Supply Agreement. But Valneva strenuously denies this.
Valneva is continuing the VLA2001 development plan. And testing for Valneva’s pivotal Phase 3 trial Cov-Compare is ongoing at Public Health England (PHE). Valneva had recently announced that its Phase 3 results are expected to be available early in the fourth quarter and that these results will form part of its rolling submission for conditional approval of VLA2001 with the UK’s Medicines and Healthcare products Regulatory Agency (MHRA). Subject to the data and MHRA approval, Valneva believes that initial approval for VLA2001 could be granted in late 2021.
Valneva said it “has worked tirelessly, and to its best efforts, on the collaboration with HMG including investing significant resources and effort to respond to HMG’s requests for variant-derived vaccines.” And Valneva is committed to the development of VLA2001 and will increase its efforts with other potential customers to ensure that its inactivated vaccine can be used in the fight against the pandemic.
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