VALN · Valneva SE

Valneva's Q1 2026 results reflect a strategic pivot away from third-party product distribution, which declined 97.6% to €0.1 million, enabling focus on proprietary vaccines IXIARO/JESPECT, DUKORAL, and IXCHIQ. Total revenues fell to €30.9 million from €49.2 million year-over-year, with product sales at €30.5 million. IXIARO sales of €20.2 million were impacted by U.S. DoD shipment phasing, DUKORAL €8.6 million affected by a German distributor transition, and IXCHIQ €1.6 million lower without prior outbreak sales. Gross margins deteriorated—IXIARO to 50.8% from 72.6%, DUKORAL to 33.6% from 52.2%—due to manufacturing transfer to Scotland's Almeida facility, batch write-offs, and idle costs totaling €5.0 million in COGS. This contributed to a net loss widening to €32.1 million from €9.2 million, alongside €7.6 million in finance expenses from USD/EUR forex losses. Positively, operating cash burn improved sharply to €0.3 million from €8.1 million, supported by lower working capital needs. Cash stood at €105.3 million end-Q1, bolstered post-period by €37 million gross proceeds from a reserved offering. Management revised 2026 product sales guidance downward to €135-150 million from €145-160 million, citing geopolitical-driven declines in travel vaccine uptake, while confirming other revenues. A new restructuring follows French consolidation, targeting 10-15% global workforce reduction for 25-35% opex cut versus 2025, with gross margins expected to normalize. Corporate updates highlight Pfizer's planned Lyme vaccine LB6V regulatory filings post-Phase 3 efficacy >70%, ongoing IXCHIQ pilot in Brazil vaccinating over 30,000, and mid-2026 Shigella S4V2 Phase 2 readouts. CFO Peter Bühler emphasized cash burn reduction and strengthened balance sheet positioning for potential Lyme approvals.