Valneva (VLA) Q2 2024 earnings summary

Executive summary

• Product sales reached €68.3 million in H1 2024, with first IXCHIQⓇ sales recognized in the U.S. and total revenues of €70.8 million, in line with expectations.

• Net profit was €34.0 million, reversing a €35.0 million loss in H1 2023, mainly due to a €90.8 million gain from the sale of a Priority Review Voucher.

• Cash position stood at €131.4 million, with lower cash burn expected in H2 2024 after completion of Lyme program contributions.

• Major R&D achievements included strategic partnerships, new vaccine approvals, and progress in clinical trials for Lyme, Shigella, and Zika programs.

• Strategic pipeline expansion included exclusive licensing for a Phase 2 Shigella vaccine and a major CEPI grant for chikungunya vaccine access.

Financial highlights

• Product sales grew 7% year-over-year to €68.3 million, led by IXIAROⓇ (+38%) and initial IXCHIQⓇ sales; DUKORALⓇ sales declined 13% to €14.9 million.

• Third-party product sales declined 37% to €10.5 million due to supply constraints.

• Total revenues were €70.8 million, down 4% from H1 2023, mainly due to lower COVID-19 and R&D collaboration revenues.

• Operating profit was €46.7 million, up from a €35.0 million loss in H1 2023, aided by the PRV sale.

• Adjusted EBITDA improved to €56.2 million from a €28.3 million loss.

Outlook and guidance

• Full-year 2024 guidance confirmed: product sales €160–180 million, total revenues €170–190 million, other income €100–110 million, R&D expense €60–75 million.

• Commercial business (excluding IXCHIQⓇ) expected to be cash-flow positive in 2024; including IXCHIQⓇ from 2025.

• IXCHIQⓇ sales projected to exceed €100 million in year three post-launch, with double-digit CAGR for IXIAROⓇ expected for at least the next 3 years.

• Revenues expected to double by the time Lyme is launched.

• Key H2 2024 goals: expand IXCHIQⓇ authorizations, ramp up U.S. sales, progress Lyme and Shigella trials, and strengthen ESG initiatives.