VLA Valneva SE

   By Mauro Orru 
 

Shares in France-based vaccine maker Valneva SE took a dive Monday after the U.K. government terminated an agreement for the supply of Valneva's Covid-19 vaccine candidate, saying the company breached its obligations under the deal.

At 0830 GMT, Valneva shares were down 33% at EUR13.30.

Valneva said it strenuously denied the allegation from the U.K. government, which signed up for at least 100 million doses of Valneva's vaccine to be manufactured in Scotland.

The U.K.'s Department of Health and Social Care didn't immediately respond to a request for comment on the alleged breach of obligations.

Valneva's vaccine candidate, VLA2001, is in late-stage trials, known as Phase 3, with results expected early in the fourth quarter.

The vaccine carries inactivated whole virus particles of SARS-CoV-2 with high S-protein density, in combination with two adjuvants that helped induce higher antibody levels in preclinical experiments.

"Valneva continues to be 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," the company said.

The U.K had secured 100 million doses of Valneva vaccine after signing a deal for a further 40 million doses in early 2021 in a move aimed at bringing the country's total vaccine portfolio to 407 million doses over the next two years.

The government said at the time that it had invested a multimillion sum in Valneva's manufacturing facility in West Lothian, Scotland, where manufacturing of vaccine doses had already begun.

Write to Mauro Orru at mauro.orru@wsj.com; @MauroOrru94

(END) Dow Jones Newswires

September 13, 2021 04:49 ET (08:49 GMT)

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