Valneva Receives Notice of European Commission’s Intent to Terminate COVID-19 Vaccine Purchase Agreement

On May 16, 2022

Valneva SE, a specialty vaccine company, announced that it has received a notice from the European Commission (“EC”) of intent to terminate the advance purchase agreement (“APA”) for Valneva’s inactivated whole-virus COVID-19 vaccine candidate VLA2001.

The APA provides the EC with a right to terminate the APA if VLA2001 had not received a marketing authorization from the European Medicines Agency (“EMA”) by April 30, 2022. Based on the terms of the APA, Valneva has 30 days from May 13, 2022 to obtain a marketing authorization or propose an acceptable remediation plan.

The Company will work with the EC and the participating EC member states to agree to a remediation plan and to make VLA2001 available to those member states who still wish to receive it.

Thomas Lingelbach, Chief Executive Officer of Valneva, commented, “the EC decision is regrettable especially as we continue to receive messages from Europeans who are looking for a more traditional vaccine solution. We have started a dialogue with member states who are interested in our inactivated approach. Valneva continues to believe that its vaccine candidate VLA2001 can make an important contribution to the fight against COVID-19 and complement existing vaccines with an inactivated, whole virus approach”.

The Company announced on April 25, 2022 that it received a further List of Questions (“LoQ”) from the Committee for Medicinal Products for Human Use (“CHMP”) of the EMA. Valneva submitted its responses on May 2, 2022 and believes that they adequately address the remaining questions. If the CHMP accepts Valneva’s responses, the Company would expect to receive a positive CHMP opinion at the latest in June 2022.

VLA2001 received a Conditional Marketing Authorization from the Medicines and Healthcare products Regulatory Agency in the United Kingdom on April 14, 2022 and Emergency Use Authorizations from the Ministry of Health & Prevention of the United Arab Emirates and from the National Health Regulatory Authority in Bahrain on May 13, 2022 and on February 28, 2022, respectively.

If the EC ultimately terminates the APA, Valneva will not be required to return the down payments received since Valneva has committed the full amount of those down payments and the APA does not require reimbursement of such payments under these circumstances.

Based on the outcome of the discussions with the EC and the relevant member states, Valneva will reconsider its full-year 2022 financial guidance.