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Valneva (VALN) Stock Rises on Deal With EU for COVID-19 Jab

Valneva’s VALN shares surged 24.3% on Nov 10, after the company announced that it has entered into an advance purchase agreement (APA) with the European Commission (EC) for the supply of its inactivated COVID-19 vaccine candidate, VLA2001.

Although the APA has been approved by the EC, it is currently under final review by the member states of the European Union (EU), providing them the possibility to secure up to 60 million doses of the company’s COVID-19 vaccine.

Per the APA, Valneva would supply approximately 27 million doses of VLA2001 to the member states of the EU in 2022. The APA will also allow these member states to procure additional purchases of up to 33 million doses of the COVID vaccine in 2023, including the possibility to adapt the vaccine to new COVID-19 variant strains.

The delivery of the vaccine supply by the company, which is anticipated to begin next April, is subject to approval of the vaccine candidate by the European Medicines Agency (“EMA”). The EMA is expected to initiate a rolling review of VLA2001 in the upcoming few weeks.

Valneva’s shares have rallied 77.3% so far this year in comparison with the industry’s 1.4% growth.

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The APA with Valneva is one of the many agreements undertaken by the EC to purchase potential COVID-19 vaccines. It has already inked similar deals with multiple companies like AstraZeneca AZN, Moderna MRNA and Pfizer PFE for COVID-19 vaccines.

Last month, the company announced positive top-line data from the pivotal phase III study Cov-Compare (VLA2001-301) comparing Valneva’s VLA2001 against AstraZeneca’s COVID vaccine AZD1222. Data from the study demonstrated the superiority of VLA2001 over the AstraZeneca vaccine. The study achieved both co-primary endpoints two weeks after the second vaccination. VLA2001 produced superior neutralizing antibody titer levels than AZD1222 and VLA2001 demonstrated the same effectiveness as AZD1222 in neutralizing antibody seroconversion rates above 95%.

Though Valneva’s COVID-19 vaccine holds potential, it faces stiff competition from the COVID-19 vaccines developed by AstraZeneca, Moderna and Pfizer, which are already approved in the EU and are catering to this market. In fact, these vaccines have also been granted emergency use listing by the World Health Organizationand have already been administered to billions of people across the globe.

Zacks Rank

Valneva currently carries a Zacks Rank #4 (Sell).

You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.


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AstraZeneca PLC (AZN): Free Stock Analysis Report
 
Pfizer Inc. (PFE): Free Stock Analysis Report
 
Moderna, Inc. (MRNA): Free Stock Analysis Report
 
Valneva SE Sponsored ADR (VALN): Free Stock Analysis Report
 
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