Valneva (VLA) Q3 2024 earnings summary

Executive summary

• Product sales for the first nine months of 2024 reached €112.5 million, with total revenues of €116.6 million and a net profit of €24.7 million, reversing a €69.3 million loss last year, mainly due to a €90.8 million gain from the sale of a Priority Review Voucher.

• Cash position at September 30, 2024, was €156.3 million, bolstered by €61.2 million from a private placement, supporting ongoing R&D and operations.

• The company advanced its R&D pipeline, including Lyme disease, chikungunya, Shigella, and Zika vaccine programs, and expects sustained profitability from 2027, driven by the Lyme vaccine.

• Launched the world’s first chikungunya vaccine in Canada and Europe, with further approvals expected in Brazil and the UK.

• Commercial business expected to be cash-flow positive from 2025, with a focus on pipeline advancement and manufacturing transition.

Financial highlights

• Product sales increased 12% year-over-year to €112.5 million, with IXIARO®/JESPECT® up 31% to €66 million and DUKORAL® up 6% to €22.3 million.

• Operating profit was €34.2 million, reversing a prior year loss of €57.2 million; adjusted EBITDA improved to €48.6 million from a €46 million loss.

• Net profit for the period was €24.7 million, compared to a €69.3 million loss last year.

• Third-party product sales declined 23% year-over-year to €22.5 million due to supply constraints.

• Net cash used in operating activities was €76.7 million, down from €136 million last year.

Outlook and guidance

• 2024 product sales guidance narrowed to €160–170 million; total revenues expected at €170–180 million.

• Other income, including PRV proceeds, expected at €100–110 million; R&D expenses forecasted at €65–75 million.

• Commercial business expected to be cash-generative from 2025, with improved margins and top-line growth.

• Sustained profitability targeted from 2027, contingent on Lyme vaccine success and approval.

• Lower cash burn projected in H2 2024 as Lyme disease program cost contributions are complete.