Financial Data and Key Metrics Changes - Total revenues for the first half of 2025 reached approximately €100 million, marking a significant year-over-year growth [4] - Cash position exceeded €160 million, indicating a strong cash influx and reduced operating cash burn [4][29] - Product sales increased to €91 million from €68.3 million in 2024, representing a growth of 33.3% [23] - Total revenues rose to €97.6 million from €70.8 million in 2024, an increase of 37.8% [25] - Adjusted EBITDA for 2025 was reported at minus €6.8 million, compared to a positive EBITDA of €66.2 million in the previous year [29] Business Line Data and Key Metrics Changes - IXIARO sales reached €54.7 million, increasing by 30.6% year-over-year [23] - DUKORAL sales grew by 16.4% to €17.4 million, supported by a sale to combat a cholera outbreak [24] - XGIC sales surged to €7.5 million from €1 million in 2024, benefiting from a supply to address a chikungunya outbreak [25] Market Data and Key Metrics Changes - The company secured additional marketing authorizations for XGIC in the UK, Brazil, and label extensions in Europe [6] - The company responded to public health needs by supplying vaccines during outbreaks in La Réunion and Mayotte [5][6] Company Strategy and Development Direction - The company aims to address unmet medical needs and expand its vaccine portfolio, particularly focusing on Lyme disease, chikungunya, and Shigella [5][19] - The partnership with CSL for vaccine distribution in Germany is expected to enhance market access and sales potential [56] - The company is focused on strategic investments in R&D and anticipates continuous growth in product sales [30][32] Management's Comments on Operating Environment and Future Outlook - Management highlighted the importance of the Lyme disease vaccine program as a major catalyst for future growth [32] - The company expects a significantly lower cash burn in operations, targeting a reduction of over 50% year-over-year [30] - Management expressed confidence in the ongoing clinical trials and the potential for successful vaccine approvals [32] Other Important Information - The company reported a gross margin improvement on commercial products, with IXIARO achieving a gross margin of 65.5% [26] - R&D expenses increased to €32.4 million, driven by costs related to the Shigella vaccine candidate [27] Q&A Session Summary Question: Will there be additional revenue recognition for the 40,000 doses sold to the French government in Q3? - Management confirmed that all doses were shipped in the first half of the year, and revenue will be recognized in that period [40] Question: Can you provide insight on the demand scenarios for XGIC considering the chikungunya outbreak? - Management acknowledged the critical epidemiological situation and emphasized the company's readiness to respond to outbreaks [38] Question: What is the expected timeline for the Lyme vaccine data readouts? - Management indicated that top-line data is expected by the end of the first quarter of 2026, with detailed results to follow [47][66] Question: What are the expectations for sales uptake in the traveler market for XGIC? - Management noted that the recent lifting of restrictions should lead to increased market uptake and ongoing discussions for stockpiling in the U.S. [56] Question: What is the bar for success for the Lyme vaccine trial? - Management stated that while direct comparisons to previous vaccines are challenging, they expect a different efficacy profile based on their current study design [62]

Filing Information [Form 6-K Details](index=1&type=section&id=Form%206-K%20Details) This document is a Form 6-K filed by Valneva SE on August 12, 2025, reporting its unaudited interim condensed consolidated financial statements for the six months ended June 30, 2025, and includes a press release as Exhibit 99.1. The information, excluding the 'Financial Outlook' section of the press release, is incorporated by reference into the company's Form F-3 Registration Statement - Valneva SE filed Form 6-K on August 12, 2025, to report results for the six months ended June 30, 2025, including unaudited interim condensed consolidated financial statements[6](index=6&type=chunk) - A press release (Exhibit 99.1) is attached, and the Form 6-K content (excluding 'Financial Outlook' in Exhibit 99.1) is incorporated by reference into the company's Form F-3 Registration Statement[6](index=6&type=chunk)[7](index=7&type=chunk) [Signatures](index=2&type=section&id=Signatures) The report was duly signed on behalf of Valneva SE by Thomas Lingelbach, Chief Executive Officer and President, on August 12, 2025, in accordance with the Securities Exchange Act of 1934 - The report was signed by Thomas Lingelbach, CEO and President of Valneva SE, on August 12, 2025[9](index=9&type=chunk)[10](index=10&type=chunk) General Introductory Comments and Disclaimer [Terminology and Trademarks](index=5&type=section&id=Terminology%20and%20Trademarks) This section defines key terms like 'Company,' 'Valneva,' and 'Group' as Valneva SE and its subsidiaries. It also clarifies the ownership and usage of trademarks and service marks mentioned in the report - The terms 'Company', 'Valneva', and 'Group' refer to Valneva SE and its subsidiaries[13](index=13&type=chunk) - Trademarks like 'Valneva,' 'IXIARO,' 'JESPECT,' 'DUKORAL,' and 'IXCHIQ' are proprietary to Valneva or its partners[14](index=14&type=chunk) [Forward-Looking Statements and Risk Factors](index=5&type=section&id=Forward-Looking%20Statements%20and%20Risk%20Factors) The report contains forward-looking statements, particularly in the 'Operational and Strategic Outlook 2025' chapter, which are subject to inherent uncertainties in R&D, economic, financial, competitive, and regulatory environments. Investors are cautioned to review the 'Risk Factors' chapter, as these risks could significantly impact the Company's activities, financial condition, and future results - The interim financial report contains forward-looking statements, especially in 'I.4 Operational and Strategic Outlook 2025', based on reasonable data, assumptions, and estimates[15](index=15&type=chunk) - Forward-looking statements are subject to change due to uncertainties in R&D, economic, financial, competitive, and regulatory environments[16](index=16&type=chunk) - Investors are urged to pay careful attention to the risk factors in 'I.5 Risk Factors' before making investment decisions, as these risks could adversely affect the Company's operations, condition, results, or targets[17](index=17&type=chunk) Management Report [Overview](index=6&type=section&id=1%20Overview) Valneva is a specialty vaccine company focused on developing, manufacturing, and commercializing prophylactic vaccines for infectious diseases with unmet medical needs. The company employs a specialized approach to deliver first-, best-, or only-in-class vaccine solutions, leveraging its commercial business to fund a pipeline that includes a Lyme disease vaccine candidate (VLA15) partnered with Pfizer, a tetravalent Shigella vaccine candidate, and Zika virus vaccine candidates - Valneva is a specialty vaccine company developing, manufacturing, and commercializing prophylactic vaccines for infectious diseases[20](index=20&type=chunk) - The company focuses on providing first-, best-, or only-in-class vaccine solutions and has a pipeline including a Lyme disease vaccine candidate (VLA15) partnered with Pfizer, a tetravalent Shigella vaccine candidate, and Zika virus vaccine candidates[20](index=20&type=chunk)[21](index=21&type=chunk) - Valneva has approximately **700 employees** across operations in Austria, Sweden, the UK, France, Canada, and the U.S[22](index=22&type=chunk) [Operational Review](index=6&type=section&id=2%20Operational%20Review) Valneva's operational review highlights significant progress in both its R&D pipeline and commercialized products during the first half of 2025. Key advancements include positive Phase 2 booster data for the Lyme disease vaccine candidate VLA15, initiation of Phase 2 studies for the Shigella vaccine candidate S4V2, and reinitiation of clinical development for the Zika vaccine candidate VLA1601. Commercial product sales, particularly IXIARO/JESPECT and DUKORAL, saw strong growth, and IXCHIQ received its first marketing authorization in an endemic country (Brazil) and expanded its label in Europe, despite temporary usage restrictions for elderly individuals being lifted [Vaccine Research & Development (R&D)](index=6&type=section&id=2.1%20Vaccine%20Research%20%26%20Development%20(R%26D)) Valneva's R&D pipeline focuses on differentiated vaccine candidates that are first-, best-, or only-in-class, addressing unmet needs in infectious diseases - Valneva's R&D pipeline focuses on differentiated vaccine candidates that are first-, best-, or only-in-class, addressing unmet needs in infectious diseases[24](index=24&type=chunk)[25](index=25&type=chunk) - Lyme Disease Vaccine Candidate (VLA15): Partnered with Pfizer, VLA15 is in **Phase 3 (VALOR study)** with recruitment completed (**9,437 participants**) and full vaccination achieved in **August 2025**. Positive Phase 2 pediatric and adolescent immunogenicity and safety data were reported in **September 2024**, showing high antibody levels and seroconversion rates **above 90%** across all six serotypes after a second booster dose[31](index=31&type=chunk)[32](index=32&type=chunk)[33](index=33&type=chunk) - Shigella Vaccine Candidate (S4V2): Valneva licensed S4V2 from LimmaTech Biologics in August 2024. LimmaTech received an upfront payment of **€10 million** and is eligible for up to **€40 million** in milestones plus **low double-digit royalties**. **Phase 2** Controlled Human Infection Model (CHIM) and pediatric studies were initiated in November 2024 and April 2025, respectively[37](index=37&type=chunk) - Zika Vaccine Candidate (VLA1601): Clinical development reinitiated in **March 2024** for VLA1601, a highly purified inactivated, adjuvanted vaccine candidate. A **Phase 1** trial (VLA1601-102) with **~150 participants** is ongoing, with results expected in **H2 2025**[41](index=41&type=chunk) - Pre-clinical Vaccine Candidates: Prioritizing VLA2112, a vaccine candidate targeting the Epstein-Barr virus (EBV), and other early-stage candidates for enteric diseases[42](index=42&type=chunk)[43](index=43&type=chunk) [Marketed Products](index=9&type=section&id=2.2%20Marketed%20products) Valneva commercializes three proprietary travel vaccines: IXIARO/JESPECT (Japanese encephalitis), DUKORAL (cholera/ETEC), and IXCHIQ (chikungunya) - Valneva commercializes **three proprietary travel vaccines**: IXIARO/JESPECT (Japanese encephalitis), DUKORAL (cholera/ETEC), and IXCHIQ (chikungunya)[43](index=43&type=chunk) - In **June 2025**, Valneva signed an exclusive marketing and distribution agreement with CSL Seqirus for its **three proprietary vaccines** in Germany, starting with IXCHIQ in **July 2025** and IXIARO/DUKORAL from **January 2026**[44](index=44&type=chunk) Product Sales (H1 2025 vs H1 2024) | Product | H1 2025 Sales (€ million) | H1 2024 Sales (€ million) | YoY Change (%) | | :-------- | :------------------------ | :------------------------ | :------------- | | Total Sales | 91.0 | 68.3 | 33.2% | | IXIARO/JESPECT | 54.7 | 41.9 | 30.5% | | DUKORAL | 17.4 | 14.9 | 16.8% | | IXCHIQ | 7.5 | 1.0 | 650.0% | | Third-party sales | 11.4 | 10.5 | 8.6% | - IXIARO/JESPECT sales increased by **31%** to **€54.7 million** in H1 2025, driven by growth in both traveler and U.S. Department of Defense (DoD) channels, including a new **$32.8 million** contract with the DoD in **January 2025**[49](index=49&type=chunk)[50](index=50&type=chunk) - DUKORAL sales grew by **16%** to **€17.4 million** in H1 2025, supported by supply to Mayotte (**€1.1 million**) and growth in travel markets[54](index=54&type=chunk) - IXCHIQ sales surged to **€7.5 million** in H1 2025 (from **€1.0 million** in H1 2024), benefiting from its launch in additional countries (Nordics, Austria, Germany), marketing authorization in Brazil (**first in an endemic country**), and supply to La Réunion during an outbreak[58](index=58&type=chunk)[61](index=61&type=chunk) - Temporary restrictions on IXCHIQ use for elderly individuals (due to SAE reports) by FDA, EMA, and France's Haute Autorité de Santé were lifted in **July/August 2025**, with agencies emphasizing careful benefit-risk consideration[60](index=60&type=chunk) - Valneva expanded its partnership with CEPI for broader IXCHIQ access in LMICs (up to **$41.3 million** additional funding) and signed an exclusive license agreement with Serum Institute of India (SII) for supply in Asia, complementing an existing agreement with Instituto Butantan for Latin America[62](index=62&type=chunk)[63](index=63&type=chunk) - Third-party sales increased by **9%** to **€11.4 million** in H1 2025 but are expected to gradually wind down to **less than 5%** of total sales by **2026/2027** to improve gross margins[64](index=64&type=chunk)[65](index=65&type=chunk) [Other Revenues / Income](index=10&type=section&id=2.3%20Other%20revenues%20%2F%20income) Other revenues, including collaborations, licensing, and services, increased to €6.5 million in H1 2025, primarily due to the exclusive license agreement with Serum Institute of India for the chikungunya vaccine, while other income decreased due to the non-recurrence of the Priority Review Voucher sale - Other revenues, including collaborations, licensing, and services, increased to **€6.5 million** in H1 2025 from **€2.5 million** in H1 2024, primarily due to revenues from the exclusive license agreement with Serum Institute of India for the chikungunya vaccine[66](index=66&type=chunk)[67](index=67&type=chunk)[80](index=80&type=chunk) - Valneva is eligible to receive up to **$143 million** in early commercial milestones and tiered royalties (**14% to 22%**) from Pfizer for VLA15, plus an additional **$100 million** in cumulative sales-based milestones[66](index=66&type=chunk) - Other income decreased to **€4.6 million** in H1 2025 from **€6.4 million** in H1 2024, as the net gain of **€90.8 million** from the Priority Review Voucher (PRV) sale in H1 2024 did not recur[67](index=67&type=chunk)[85](index=85&type=chunk) [Other Business Updates](index=10&type=section&id=2.4%20Other%20Business%20Updates) Valneva renewed its At-the-Market (ATM) offering facility, raising $23.3 million in gross proceeds, and made changes to its Board of Directors and executive team - Valneva renewed its At-the-Market (ATM) offering facility in **March 2025**, allowing it to offer and sell up to **$75.0 million** in American Depositary Shares (ADS)[70](index=70&type=chunk)[71](index=71&type=chunk) - Since the renewal, Valneva raised **$14.3 million** gross proceeds from an ATM transaction with Novo Holdings A/S in **April 2025** and **$9.0 million** gross proceeds from Frazier Life Sciences in **May 2025**[73](index=73&type=chunk) - Dr. Gerd Zettlmeissl was appointed to Valneva's Board of Directors for a **three-year term** in **June 2025**[75](index=75&type=chunk) - James Sulat was reappointed to the Board for a **one-year term** in **June 2025**, and Franck Grimaud, Chief Business Officer and co-founder, departed the company on **June 25, 2025**[76](index=76&type=chunk)[77](index=77&type=chunk) [Financial Review](index=12&type=section&id=3%20Financial%20Review) Valneva's financial performance in the first half of 2025 showed a significant increase in total revenues and product sales, driven by strong commercial product performance. However, the company reported a net loss and Adjusted EBITDA loss, primarily due to the non-recurrence of a substantial gain from the sale of a Priority Review Voucher in H1 2024. Operating expenses saw some reductions, and cash used in operating activities decreased significantly, reflecting improved sales and cost management Key Financial Information (H1 2025 vs H1 2024) | in € thousand | Six months ended June 30, 2025 | Six months ended June 30, 2024 | | :-------------- | :----------------------------- | :----------------------------- | | Total Revenues | 97,562 | 70,813 | | Product Sales | 91,020 | 68,279 | | Profit/(loss) for the period | (20,818) | 33,976 | | Adjusted EBITDA | (6,020) | 56,159 | | Cash and cash equivalents | 161,307 | 131,413 | - Total revenues increased by **37.8%** to **€97.6 million** in H1 2025 (H1 2024: **€70.8 million**), with product sales growing by **33.3%** to **€91.0 million** (H1 2024: **€68.3 million**). Foreign currency fluctuations adversely impacted product sales by **€0.5 million**[79](index=79&type=chunk) - Operating loss was **€16.8 million** in H1 2025, compared to an operating profit of **€46.7 million** in H1 2024, mainly due to the non-recurrence of the **€90.8 million** net gain from the PRV sale in 2024[85](index=85&type=chunk)[86](index=86&type=chunk) - Adjusted EBITDA was a **loss of €6.0 million** in H1 2025, a significant decrease from a **profit of €56.2 million** in H1 2024, which had benefited from the PRV sale[87](index=87&type=chunk) - Net loss for the period was a **net loss of €20.8 million** in H1 2025, contrasting with a **net profit of €34.0 million** in H1 2024, primarily due to the PRV sale in the prior year[88](index=88&type=chunk) - Net cash used in operating activities significantly reduced to **€10.9 million** in H1 2025 (H1 2024: **€66.3 million**), driven by increased sales and efficient cost management[90](index=90&type=chunk) - Cash and cash equivalents stood at **€161.3 million** as of **June 30, 2025**, down from **€168.3 million** at **December 31, 2024**[93](index=93&type=chunk) Adjusted EBITDA Reconciliation (H1 2025 vs H1 2024) | in € thousand | Six months ended June 30, 2025 | Six months ended June 30, 2024 | | :------------------------------------------------ | :----------------------------- | :----------------------------- | | PROFIT/(LOSS) FOR THE PERIOD | (20,818) | 33,976 | | Add: | | | | Income tax (benefits)/expense | 1,251 | (158) | | Financing income | (1,065) | (787) | | Financing expenses | 11,585 | 11,981 | | Foreign currency (gain)/loss – net | (7,783) | 1,652 | | Amortization | 2,439 | 2,471 | | Depreciation | 8,371 | 7,024 | | Impairment | — | — | | ADJUSTED EBITDA | (6,020) | 56,159 | [Operational and Strategic Outlook 2025](index=14&type=section&id=4%20Operational%20and%20Strategic%20Outlook%202025) Valneva's 2025 strategy focuses on advancing its vaccine pipeline, growing proprietary product sales, and expanding market access. Key goals for the second half of 2025 include progressing the Phase 3 study for the Lyme disease vaccine VLA15 with Pfizer, aiming for regulatory submissions in 2026, continuing to build a leading position in the travel vaccines market, securing additional label extensions for IXCHIQ, and advancing clinical trials for Shigella and Zika vaccine candidates, alongside ESG initiatives - Valneva's strategy is to develop, manufacture, and commercialize prophylactic vaccines, aiming for first-, best-, or only-in-class solutions for unmet medical needs[99](index=99&type=chunk) - Key goals for H2 2025 include[100](index=100&type=chunk)[101](index=101&type=chunk) - Continue **Phase 3 VALOR study** for Lyme disease vaccine VLA15 with Pfizer, targeting BLA/MAA submissions in **2026**[100](index=100&type=chunk) - Grow proprietary product sales (IXIARO, DUKORAL, IXCHIQ) to build a leading position in the travel vaccines market[101](index=101&type=chunk) - Secure additional label extensions for chikungunya vaccine IXCHIQ in the U.S., UK, and Canada, and prepare for **Phase 4** post-marketing studies[101](index=101&type=chunk) - Ensure continued progress of **Phase 2** clinical trials for Shigella vaccine candidate S4V2 and **Phase 1** study for Zika vaccine candidate VLA1601, along with preclinical studies[101](index=101&type=chunk) - Continue executing Valneva's ESG strategy and initiatives[101](index=101&type=chunk) [Risk Factors](index=15&type=section&id=5%20Risk%20Factors) Valneva identifies several significant risks for the remainder of 2025, including dependence on the Pfizer partnership for the Lyme disease vaccine VLA15 (where Pfizer has considerable discretion and a development failure would be critical). Other risks include reliance on sales of key marketed products (IXIARO, DUKORAL, IXCHIQ), which are sensitive to travel industry strength, side effects (e.g., IXCHIQ temporary restrictions), and competition. Geopolitical risks, financing needs, operational risks related to manufacturing facilities and supply chains, and compliance with listed company requirements (including new EU CSRD obligations and U.S. shareholder litigation risk) also pose challenges - Risks relating to the Lyme disease vaccine candidate and the Pfizer Partnership: Pfizer has considerable discretion over VLA15's development and commercialization. A development failure or partnership termination would result in a total loss of expected commercial and financial upside[103](index=103&type=chunk)[104](index=104&type=chunk) - Risk of Dependence on Sales of Key Products: Revenues are primarily from IXIARO, DUKORAL, and IXCHIQ, affected by the travel industry, customer payment ability, and product side effects (e.g., temporary restrictions on IXCHIQ for elderly due to SAEs)[105](index=105&type=chunk)[107](index=107&type=chunk) - Product sales also depend on Valneva's manufacturing capacity and ability to respond to demand changes, with past supply shortages for IXIARO and DUKORAL[108](index=108&type=chunk) - Geopolitical risks: Volatility in the political environment, legislative changes, budget cuts, tariffs (e.g., **15%** on EU pharma imports to U.S.), and currency fluctuations (especially USD) could impact business[109](index=109&type=chunk) - Risks relating to Financing: Valneva is capital-intensive and will need additional capital, which may not be available on acceptable terms. The company is subject to debt covenants (minimum revenue and liquidity) under the Deerfield and OrbiMed loan agreement[110](index=110&type=chunk) - Operational risks: Dependence on primary manufacturing facilities (Livingston, Scotland; Solna, Sweden) for key products, vulnerability to contamination, manufacturing failures, supply chain disruptions, and non-compliance with Good Manufacturing Practices (GMP)[111](index=111&type=chunk)[113](index=113&type=chunk)[114](index=114&type=chunk)[115](index=115&type=chunk) - Cybersecurity risks: Internal IT systems are vulnerable to cyber-attacks and data breaches, potentially damaging business processes or exposing confidential information[116](index=116&type=chunk) - Listed company requirements: Compliance with complex regulations in France and the U.S. (e.g., EU CSRD, U.S. shareholder litigation risk) requires significant time and expense, potentially diverting management attention[117](index=117&type=chunk) [Related Parties' Transactions](index=17&type=section&id=6%20Related%20Parties'%20Transactions) Bpifrance is considered a related party due to its shareholding and Board representation until June 25, 2025. No material transactions or changes in transactions between related parties significantly affected Valneva's financial position or performance in the first half of 2025 - Bpifrance is a related party due to its shareholding and Board representation until **June 25, 2025**[119](index=119&type=chunk) - No material transactions or changes in transactions between related parties significantly affected Valneva's financial position or performance in H1 2025[119](index=119&type=chunk) Statutory Auditors' Review Report on the Half Year Financial Information The content for the Statutory Auditors' Review Report on the Half Year Financial Information (Period from January 1 to June 30, 2025) was not provided in the original document Unaudited Interim Condensed Consolidated Financial Statements as at June 30, 2025 [Unaudited Interim Consolidated Statement of Profit or Loss and Comprehensive Income](index=18&type=section&id=1%20Unaudited%20Interim%20Consolidated%20Statement%20of%20Profit%20or%20Loss%20and%20Comprehensive%20Income) Valneva reported a net loss of €20.8 million for the six months ended June 30, 2025, a significant shift from a net profit of €34.0 million in the prior year, primarily due to the non-recurrence of the gain from the sale of a Priority Review Voucher. Total revenues increased to €97.6 million, driven by higher product sales and other revenues, but operating profit turned into a loss Unaudited Interim Condensed Consolidated Statement of Profit or Loss | in € thousand | Note | Six months ended June 30, 2025 | Six months ended June 30, 2024 | | :-------------- | :--- | :----------------------------- | :----------------------------- | | Product sales | 5.5 | 91,020 | 68,279 | | Other revenues | 5.5 | 6,542 | 2,534 | | REVENUES | | 97,562 | 70,813 | | Cost of goods and services | 5.6 | (47,162) | (45,628) | | Research and development expenses | 5.6 | (32,441) | (29,683) | | Marketing and distribution expenses | 5.6 | (20,310) | (23,181) | | General and administrative expenses | 5.6 | (19,034) | (22,847) | | Gain from sale of Priority Review Voucher, net | 5.7 | — | 90,833 | | Other income and expenses, net | 5.7 | 4,555 | 6,357 | | OPERATING PROFIT/(LOSS) | | (16,830) | 46,663 | | Finance income | 5.8 | 1,065 | 787 | | Finance expenses | 5.8 | (11,585) | (11,981) | | Foreign exchange gain/(loss), net | 5.8 | 7,783 | (1,652) | | PROFIT/(LOSS) BEFORE INCOME TAX | | (19,567) | 33,818 | | Income tax benefit/(expense) | | (1,251) | 158 | | PROFIT/(LOSS) FOR THE PERIOD | | (20,818) | 33,976 | | EARNINGS/(LOSSES) PER SHARE | | | | | Basic | | (0.13) | 0.25 | | Diluted | | (0.13) | 0.24 | Unaudited Interim Condensed Consolidated Statement of Comprehensive Income | in € thousand | Note | Six months ended June 30, 2025 | Six months ended June 30, 2024 | | :-------------- | :--- | :----------------------------- | :----------------------------- | | PROFIT/(LOSS) FOR THE PERIOD | | (20,818) | 33,976 | | OTHER COMPREHENSIVE INCOME/(LOSS) | | | | | Items that may be reclassified to profit or loss | | | | | Currency translation differences | | 1,402 | (369) | | Defined benefit plan actuarial gains/(losses) | | 24 | (10) | | Other comprehensive income/(loss) for the period, net of tax | | 1,426 | (379) | | TOTAL COMPREHENSIVE INCOME/(LOSS) FOR THE PERIOD | | (19,391) | 33,596 | [Unaudited Interim Condensed Consolidated Statement of Financial Position](index=19&type=section&id=2%20Unaudited%20Interim%20Condensed%20Consolidated%20Statement%20of%20Financial%20Position) As of June 30, 2025, Valneva's total assets decreased to €472.6 million from €500.0 million at December 31, 2024, primarily due to a reduction in non-current assets and trade receivables. Total equity increased to €186.4 million, while total liabilities decreased to €286.2 million, driven by a significant reduction in non-current borrowings Unaudited Interim Condensed Consolidated Statement of Financial Position | in € thousand | Note | June 30, 2025 | December 31, 2024 | | :-------------- | :--- | :------------ | :---------------- | | ASSETS | | | | | Non-current assets | | 187,908 | 201,020 | | Current assets | | 284,717 | 299,012 | | TOTAL ASSETS | | 472,625 | 500,032 | | EQUITY | | | | | TOTAL EQUITY | | 186,432 | 181,253 | | LIABILITIES | | | | | Non-current liabilities | | 160,534 | 204,199 | | Current liabilities | | 125,660 | 114,580 | | TOTAL LIABILITIES | | 286,193 | 318,779 | | TOTAL EQUITY AND LIABILITIES | | 472,625 | 500,032 | - Total assets decreased by **€27.4 million** from **December 31, 2024**, to **June 30, 2025**, mainly due to decreases in non-current assets and trade receivables[123](index=123&type=chunk) - Total equity increased by **€5.2 million**, while total liabilities decreased by **€32.6 million**, primarily driven by a reduction in non-current borrowings[123](index=123&type=chunk) [Unaudited Interim Condensed Consolidated Statement of Cash Flows](index=20&type=section&id=3%20Unaudited%20Interim%20Condensed%20Consolidated%20Statement%20of%20Cash%20Flows) Valneva significantly reduced cash used in operating activities to €10.9 million in H1 2025 from €66.3 million in H1 2024, reflecting improved sales and cost management. Investing activities resulted in a net cash outflow of €1.6 million, a stark contrast to the €87.6 million inflow in H1 2024 which included the PRV sale. Financing activities generated €9.3 million, primarily from ATM transactions, compared to an outflow in the prior year Unaudited Interim Condensed Consolidated Statement of Cash Flows | in € thousand | Note | Six months ended June 30, 2025 | Six months ended June 30, 2024 | | :-------------- | :--- | :----------------------------- | :----------------------------- | | NET CASH GENERATED FROM/(USED IN) OPERATING ACTIVITIES | | (10,943) | (66,261) | | NET CASH GENERATED FROM/(USED IN) INVESTING ACTIVITIES | | (1,642) | 87,608 | | NET CASH GENERATED FROM FROM/(USED IN) FINANCING ACTIVITIES | | 9,299 | (16,589) | | NET CHANGE IN CASH AND CASH EQUIVALENTS | | (3,286) | 4,759 | | Cash and cash equivalents at beginning of the year | 5.13 | 168,271 | 126,080 | | Exchange gains/(losses) on cash | | (3,677) | 575 | | CASH AND CASH EQUIVALENTS AT END OF THE PERIOD | | 161,307 | 131,413 | - Net cash used in operating activities decreased significantly to **€10.9 million** in H1 2025 from **€66.3 million** in H1 2024, driven by increased sales and efficient cost management[90](index=90&type=chunk)[125](index=125&type=chunk) - Net cash used in investing activities was **€1.6 million** in H1 2025, compared to a net cash generated of **€87.6 million** in H1 2024, which included **€90.8 million** net proceeds from the PRV sale[91](index=91&type=chunk)[125](index=125&type=chunk) - Net cash generated from financing activities was **€9.3 million** in H1 2025, including **€20.1 million** net proceeds from ATM transactions, contrasting with a net cash outflow of **€16.6 million** in H1 2024[92](index=92&type=chunk)[125](index=125&type=chunk) [Unaudited Interim Condensed Consolidated Statement of Changes in Equity](index=21&type=section&id=4%20Unaudited%20Interim%20Condensed%20Consolidated%20Statement%20of%20Changes%20in%20Equity) Valneva's total equity increased to €186.4 million as of June 30, 2025, from €181.3 million at January 1, 2025. This increase was primarily driven by a capital increase of €21.0 million from ATM program share issuances and share-based compensation expense, partially offset by a net loss for the period Unaudited Interim Condensed Consolidated Statement of Changes in Equity (H1 2025) | in € thousand | Share capital | Share premium | Other reserves | Retained earnings/ (Accumulated deficit) | Profit/(loss) for the period | Total equity | | :-------------- | :------------ | :------------ | :------------- | :--------------------------------------- | :--------------------------- | :----------- | | BALANCE AS AT JANUARY 1, 2025 | 24,378 | 647,600 | 73,203 | (551,682) | (12,247) | 181,253 | | Total comprehensive income/(loss) | — | — | 1,426 | — | (20,818) | (19,391) | | Income appropriation | — | — | — | (12,247) | 12,247 | — | | Share-based compensation expense: Value of services | — | — | 4,498 | — | — | 4,498 | | Capital Increase | 1,150 | 19,850 | — | — | — | 21,000 | | Cost of equity transaction, net of tax | — | (928) | — | — | — | (928) | | BALANCE AS AT JUNE 30, 2025 | 25,528 | 666,523 | 79,126 | (563,928) | (20,818) | 186,432 | - Total equity increased from **€181.3 million** at **January 1, 2025**, to **€186.4 million** at **June 30, 2025**[126](index=126&type=chunk) - Capital increase of **€21.0 million** resulted from the issuance of **4.75 million shares** in **April 2025** and **2.92 million shares** in **May 2025** under the ATM program[134](index=134&type=chunk) - Share-based compensation expense contributed **€4.5 million** to equity[126](index=126&type=chunk) [Selected Notes to the Unaudited Interim Condensed Consolidated Financial Statements](index=22&type=section&id=5%20Selected%20Notes%20to%20the%20Unaudited%20Interim%20Condensed%20Consolidated%20Financial%20Statements) These notes provide detailed explanations and breakdowns for the interim condensed consolidated financial statements. They cover corporate information, significant accounting policies, critical judgments, segment information, and detailed analyses of revenues, expenses, financial income/expenses, impairment testing, and various balance sheet items like inventories, receivables, cash, borrowings, and liabilities. Key events include new contracts, marketing authorizations, and financing activities, alongside disclosures on related-party transactions and contingencies [General Information](index=22&type=section&id=5.1%20General%20information) This section provides an overview of Valneva SE, its stock exchange listings, global operations, and key significant events during the first half of 2025 - Valneva SE is a specialty vaccine company listed on Euronext Paris (VLA) and Nasdaq Global Select Market (VALN), with operations in Austria, Sweden, UK, France, Canada, and the U.S., employing around **700 people**[128](index=128&type=chunk)[130](index=130&type=chunk)[135](index=135&type=chunk) - Significant events in H1 2025 include a new **$32.8 million** supply contract for IXIARO with the U.S. DoD, UK marketing authorization for IXCHIQ, renewal of the **$75 million** ATM program (raising **€21.0 million**), first vaccination in **Phase 2** infant study for Shigella vaccine candidate S4V2, and first marketing authorization for IXCHIQ in an endemic country (Brazil)[131](index=131&type=chunk)[132](index=132&type=chunk)[133](index=133&type=chunk)[134](index=134&type=chunk)[135](index=135&type=chunk)[136](index=136&type=chunk)[137](index=137&type=chunk) - Valneva Austria GmbH is involved in external manufacturing steps of IXCHIQ[141](index=141&type=chunk) - Valneva Scotland Ltd. is primarily involved in the production of IXIARO and IXCHIQ[142](index=142&type=chunk) [Summary of Significant Accounting Policies](index=24&type=section&id=5.2%20Summary%20of%20significant%20accounting%20policies) The interim condensed consolidated financial statements for H1 2025 are prepared in accordance with IAS 34, with no significant impact from newly adopted standards, and an ongoing assessment of IFRS 18 - The interim condensed consolidated financial statements for H1 2025 are prepared in accordance with **IAS 34** Interim Financial Reporting as adopted by the EU[145](index=145&type=chunk) - New standards, amendments, and interpretations adopted since **January 1, 2025** (**IAS 21 Amendments**, Editorial Corrections) had no significant impact[149](index=149&type=chunk) - The Group is currently assessing the impact of **IFRS 18** (effective **January 1, 2027**) on future reporting periods[151](index=151&type=chunk)[153](index=153&type=chunk) [Critical Accounting Judgements and Key Sources of Estimation Uncertainty](index=25&type=section&id=5.3%20Critical%20accounting%20judgements%20and%20key%20sources%20of%20estimation%20uncertainty) Management applies judgments, estimates, and assumptions in accounting, confirming sufficient cash for operations for at least 12 months, with no new significant estimation uncertainties since December 31, 2024 - Management makes judgments, estimates, and assumptions in applying accounting policies, which are reviewed on an ongoing basis[154](index=154&type=chunk)[155](index=155&type=chunk) - The Group believes existing cash and cash equivalents are sufficient to fund operations for **at least 12 months** after the report's publication[156](index=156&type=chunk) - No additional key sources of estimation uncertainty with significant risk of material adjustment have been added since **December 31, 2024**[156](index=156&type=chunk) [Segment Information](index=25&type=section&id=5.4%20Segment%20information) Valneva's Executive Committee, as the chief operating decision maker, considers the entire operating business as a single segment: 'development and commercialization of prophylactic vaccines' - Valneva's Executive Committee, as the chief operating decision maker, considers the entire operating business as a **single segment**: 'development and commercialization of prophylactic vaccines'[157](index=157&type=chunk) [Revenues](index=25&type=section&id=5.5%20Revenues) Total revenues increased by €26.7 million in H1 2025, driven by strong product sales across IXIARO/JESPECT, DUKORAL, and IXCHIQ, alongside higher other revenues from collaborations and licensing Disaggregated Revenue Information (H1 2025 vs H1 2024) | in € thousand | Six months ended June 30, 2025 | Six months ended June 30, 2024 | | :-------------- | :----------------------------- | :----------------------------- | | IXIARO® | 54,705 | 41,891 | | DUKORAL® | 17,394 | 14,945 | | Third party products | 11,418 | 10,490 | | IXCHIQ® | 7,504 | 952 | | PRODUCT SALES | 91,020 | 68,279 | | Royalties received | 1,570 | 1,602 | | Milestone payment - licenses (1) | 4,564 | (123) | | Other services | — | 343 | | OTHER REVENUES FROM CONTRACTS WITH CUSTOMERS | 6,152 | 1,847 | | Other non-IFRS 15 revenue | 389 | 687 | | REVENUES | 97,562 | 70,813 | - Product sales increased by **€22.7 million (33%)** in H1 2025 compared to H1 2024, with favorable performance across all commercialized products[161](index=161&type=chunk) - IXIARO/JESPECT sales increased by **31%** due to higher sales in both Travel and Military channels, including a return to regular supply patterns for the U.S. DoD[162](index=162&type=chunk) - DUKORAL sales increased by **16%**, supported by supply to Mayotte and growth in most travel markets[163](index=163&type=chunk) - IXCHIQ product sales increased by **€6.6 million**, benefiting from its launch in late Q1 2024 and supply to La Réunion during an outbreak[163](index=163&type=chunk) - Other revenues from collaborations, licensing, and services increased to **€6.2 million** (from **€1.8 million**), mainly from the chikungunya vaccine development partnership in India[165](index=165&type=chunk) Product Sales by Sales Channel (H1 2025 vs H1 2024) | in € thousand | Six months ended June 30, 2025 | Six months ended June 30, 2024 | | :-------------- | :----------------------------- | :----------------------------- | | Direct product sales | 70,599 | 57,423 | | Indirect product sales | 20,421 | 10,856 | | TOTAL PRODUCT SALES | 91,020 | 68,279 | Revenue by Geographical Market (H1 2025 vs H1 2024) | in € thousand | Six months ended June 30, 2025 | Six months ended June 30, 2024 | | :-------------- | :----------------------------- | :----------------------------- | | United States | 23,470 | 20,137 | | Germany | 14,682 | 7,611 | | Canada | 14,464 | 16,034 | | France | 9,670 | 2,955 | | Austria | 7,064 | 5,873 | | United Kingdom | 6,863 | 5,554 | | Nordics | 5,892 | 6,502 | | Other Europe | 7,015 | 4,048 | | Rest of World | 8,442 | 2,099 | | REVENUE TOTAL | 97,562 | 70,813 | - Total revenues increased by **€26.7 million** in H1 2025, with positive contributions from the United States (increased U.S. military sales), Germany (higher market demand), and France (IXCHIQ sales to La Réunion)[169](index=169&type=chunk) [Expenses by Nature](index=27&type=section&id=5.6%20Expenses%20by%20nature) Operating expenses slightly decreased to €118.9 million in H1 2025, influenced by reductions in consulting and inventory costs, offset by increases in employee benefits and building expenses Operating Expenses by Nature (H1 2025 vs H1 2024) | in € thousand | Six months ended June 30, 2025 | Six months ended June 30, 2024 | | :-------------- | :----------------------------- | :----------------------------- | | Consulting and other purchased services | 28,620 | 31,309 | | Cost of services and change in inventory | (273) | 4,147 | | Employee benefit expense other than share-based compensation | 44,426 | 40,956 | | Share-based compensation expense | 4,500 | 3,770 | | Raw materials and consumables used | 7,363 | 7,802 | | Depreciation and amortization and impairment | 10,811 | 9,496 | | Building and energy costs | 7,344 | 6,048 | | Supply, office and IT costs | 4,457 | 3,694 | | License fees and royalties | 1,877 | 1,816 | | Advertising costs | 5,267 | 6,979 | | Warehousing and distribution costs | 2,221 | 1,743 | | Travel and transportation costs | 843 | 1,847 | | Other expenses | 1,490 | 1,733 | | OPERATING EXPENSES | 118,947 | 121,339 | - Operating expenses slightly decreased to **€118.9 million** in H1 2025 from **€121.3 million** in H1 2024[170](index=170&type=chunk) - Decrease in 'cost of services and change in inventory' (**€4.4 million**) due to improved manufacturing performance and smaller inventory provisions[172](index=172&type=chunk) - Decrease in 'consulting and other purchased services' (**€2.7 million**) due to increased in-house recruiting, reduced consultant use, and renegotiated loan-related insurance premiums[173](index=173&type=chunk) - Increase in 'employee benefit expenses' (**€3.5 million**) due to inflation-related higher salaries and social security contributions, and 'share-based compensation expense' (**€0.7 million**) from an additional stock option program[174](index=174&type=chunk)[176](index=176&type=chunk) - Increase in 'building and energy costs' (**€1.3 million**) due to an onerous lease provision and increased running costs for the new Scottish facility[177](index=177&type=chunk) - Decrease in 'advertising costs' (**€1.7 million**) following lower investments after the U.S. launch of IXCHIQ in early 2024[177](index=177&type=chunk) [Other Income/(Expenses), Net](index=28&type=section&id=5.7%20Other%20income%2F(expenses)%2C%20net) Other income and expenses, net, decreased to €4.6 million in H1 2025, primarily due to the non-recurrence of the €90.8 million net gain from the Priority Review Voucher sale in H1 2024 and lower R&D tax credits - The net gain from the sale of the Priority Review Voucher (PRV) in H1 2024 was **€90.8 million** (gross proceeds **$103 million**), which did not recur in H1 2025[174](index=174&type=chunk)[175](index=175&type=chunk)[178](index=178&type=chunk) Remaining Other Income and Expenses, Net (H1 2025 vs H1 2024) | in € thousand | Six months ended June 30, 2025 | Six months ended June 30, 2024 | | :-------------- | :----------------------------- | :----------------------------- | | Research and development tax credit | 2,792 | 3,610 | | Grant income | 1,951 | 1,822 | | Gain/(loss) on disposal of fixed assets and intangible assets, net | (230) | 48 | | Gain/(loss) from revaluation of lease agreements | — | 723 | | Taxes, duties, fees, charges, other than income tax | (215) | (171) | | Miscellaneous income/(expenses), net | 258 | 324 | | OTHER INCOME AND EXPENSES, NET | 4,555 | 6,357 | - Other operating income and expenses, net, decreased by **€1.8 million (28%)** to **€4.6 million** in H1 2025, mainly due to lower R&D tax credits (**€0.8 million** decrease in Austria) and the absence of one-off gains from lease agreement revaluation recorded in 2024[179](index=179&type=chunk)[180](index=180&type=chunk) - Grant income of **€1.8 million** was recognized in H1 2025 from additional CEPI funding, compared to **€0.1 million** from Scottish Enterprise[181](index=181&type=chunk) [Finance Income/(Expenses), Net](index=29&type=section&id=5.8%20Finance%20income%2F(expenses)%2C%20net) Net finance expense significantly decreased to €2.7 million in H1 2025, primarily due to a substantial foreign exchange gain from the revaluation of USD-denominated liabilities as the USD depreciated against the EUR Finance Income/(Expenses), Net (H1 2025 vs H1 2024) | in € thousand | Six months ended June 30, 2025 | Six months ended June 30, 2024 | | :-------------- | :----------------------------- | :----------------------------- | | FINANCE INCOME | | | | Interest income from other parties | 1,028 | 787 | | Other financial income | 38 | — | | TOTAL FINANCE INCOME | 1,065 | 787 | | FINANCE EXPENSES | | | | Interest expense on loans | (11,084) | (11,296) | | Interest expense on refund liabilities | (96) | (266) | | Interest expenses on lease liabilities | (404) | (418) | | Other interest expense | (1) | (2) | | TOTAL FINANCE EXPENSES | (11,585) | (11,981) | | FOREIGN EXCHANGE GAIN/(LOSSES), NET | 7,783 | (1,652) | | FINANCE INCOME/(EXPENSES), NET | (2,737) | (12,845) | - Net finance expense decreased to **€2.7 million** in H1 2025 from **€12.8 million** in H1 2024[184](index=184&type=chunk) - A foreign exchange gain of **€7.8 million** was recorded in H1 2025 (compared to a **loss of €1.7 million** in H1 2024), primarily due to the non-cash revaluation of USD-denominated liabilities as the USD depreciated against the EUR by **12.81%**[185](index=185&type=chunk) - Interest expense on refund liabilities decreased to **€0.1 million** due to significant payments to Pfizer in H1 2024[184](index=184&type=chunk) [Impairment Testing](index=29&type=section&id=5.9%20Impairment%20testing) Impairment testing for the IXCHIQ Cash-Generating Unit (CGU) as of June 30, 2025, found no impairment requirement, as its recoverable amount significantly exceeded the carrying value of its assets - Impairment testing was performed for the IXCHIQ Cash-Generating Unit (CGU) as of **June 30, 2025**, due to potential label restrictions following serious adverse events (SAEs) in La Réunion[188](index=188&type=chunk) - No impairment requirement resulted for the IXCHIQ CGU, as its recoverable amount was considerably higher than the carrying value of its assets[188](index=188&type=chunk) - Cumulative impairments amounted to **€21.9 million** as of **June 30, 2025** (December 31, 2024: **€22.1 million**), with the slight decrease related to currency revaluation effects[189](index=189&type=chunk) [Inventories](index=29&type=section&id=5.10%20Inventories) Gross inventories increased to €98.1 million, driven by higher work in progress for IXCHIQ and DUKORAL, while the total write-down provision also increased to €36.3 million Inventories (June 30, 2025 vs December 31, 2024) | in € thousand | June 30, 2025 | December 31, 2024 | | :-------------- | :------------ | :---------------- | | Raw materials | 27,619 | 28,086 | | Work in progress | 49,215 | 36,832 | | Finished goods | 18,739 | 19,493 | | Purchased goods (third party products) | 2,478 | 4,762 | | GROSS AMOUNT OF INVENTORIES BEFORE WRITE-DOWN | 98,051 | 89,173 | | Less: write-down provision | (36,320) | (35,510) | | INVENTORIES | 61,731 | 53,663 | - Gross inventories before write-down increased to **€98.1 million** (from **€89.2 million**), primarily due to an increase in work in progress related to IXCHIQ and DUKORAL, partially offset by a decrease in purchased goods[192](index=192&type=chunk) - Total write-down provision on inventory increased to **€36.3 million** (from **€35.5 million**), including **€17.2 million** for VLA2001 COVID vaccine raw materials and **€16.5 million** for IXIARO, DUKORAL, and IXCHIQ raw materials and work in progress[193](index=193&type=chunk)[194](index=194&type=chunk)[195](index=195&type=chunk) [Trade Receivables](index=30&type=section&id=5.11%20Trade%20receivables) Trade receivables, net, decreased by €12.9 million to €24.1 million due to sales timing and improved cash collections, while contract assets increased to €1.9 million Trade Receivables, Net (June 30, 2025 vs December 31, 2024) | in € thousand | June 30, 2025 | December 31, 2024 | | :-------------- | :------------ | :---------------- | | Trade receivables | 22,297 | 35,182 | | Less: loss allowance of receivables | (52) | (52) | | Contract assets | 1,877 | 75 | | TRADE RECEIVABLES, NET | 24,122 | 35,205 | - Trade receivables, net, decreased by **€12.9 million** to **€24.1 million** (from **€35.2 million**) primarily due to the timing of sales near period-end and improved cash collections[198](index=198&type=chunk)[200](index=200&type=chunk) - Contract assets increased to **€1.9 million** (from **€0.1 million**), related to the master collaboration and license agreement with Serum Institute of India (SII) for IXCHIQ[200](index=200&type=chunk) - Trade receivables past due (more than 30 days late) reached **€0.9 million** (December 31, 2024: **€2.0 million**)[199](index=199&type=chunk) [Other Assets](index=31&type=section&id=5.12%20Other%20assets) Other assets decreased to €46.2 million, primarily due to a reduction in R&D tax credit receivables and tax receivables following payments received Other Assets (June 30, 2025 vs December 31, 2024) | in € thousand | June 30, 2025 | December 31, 2024 | | :-------------- | :------------ | :---------------- | | R&D tax credit receivables | 28,827 | 31,208 | | Advance payments | 319 | 399 | | Tax receivables | 3,182 | 3,686 | | Prepaid expenses | 7,997 | 8,878 | | Contract costs | 3,710 | 3,710 | | Consumables and supplies on stock | 782 | 767 | | Miscellaneous current assets | 57 | 11 | | OTHER NON-FINANCIAL ASSETS | 44,874 | 48,659 | | Deposits | 196 | 198 | | Miscellaneous financial assets | 1,114 | 1,058 | | OTHER FINANCIAL ASSETS | 1,310 | 1,256 | | OTHER ASSETS | 46,184 | 49,915 | | Less non-current portion | 8,627 | 8,041 | | CURRENT PORTION | 37,557 | 41,874 | - R&D tax credit receivables decreased due to a **€5.1 million** payment received in **March 2025**[203](index=203&type=chunk) - Tax receivables decreased due to the receipt of VAT claims[203](index=203&type=chunk) [Cash and Cash Equivalents](index=31&type=section&id=5.13%20Cash%20and%20cash%20equivalents) Cash and cash equivalents stood at €161.3 million as of June 30, 2025, including €20.1 million from ATM transactions, exceeding the €35.0 million minimum liquidity requirement Cash and Cash Equivalents (June 30, 2025 vs December 31, 2024) | in € thousand | June 30, 2025 | December 31, 2024 | | :-------------- | :------------ | :---------------- | | Cash in hand | — | 1 | | Cash at bank | 161,307 | 168,269 | | CASH AND CASH EQUIVALENTS | 161,307 | 168,271 | - Cash and cash equivalents were **€161.3 million** as of **June 30, 2025**, including **€20.1 million** of net proceeds from At The Market (ATM) transactions[205](index=205&type=chunk) - The Group's minimum liquidity requirement for 2025 under the Deerfield & Orbimed Loan Agreement is **€35.0 million**[205](index=205&type=chunk) [Borrowings](index=31&type=section&id=5.14%20Borrowings) Total borrowings decreased to €168.4 million, primarily related to the Deerfield & Orbimed Loan Agreement, which has a book value of $190.1 million (€162.2 million) and specific liquidity and revenue covenants Total Borrowings (June 30, 2025 vs December 31, 2024) | in € thousand | June 30, 2025 | December 31, 2024 | | :-------------- | :------------ | :---------------- | | NON-CURRENT | | | | Debentures and other loans | 122,362 | 166,521 | | CURRENT | | | | Debentures and other loans | 46,023 | 20,852 | | TOTAL BORROWINGS | 168,385 | 187,373 | - Total borrowings decreased to **€168.4 million** (from **€187.4 million**), with **€162.2 million** related to the Deerfield & Orbimed (D&O) Loan Agreement[208](index=208&type=chunk) - The D&O Loan Agreement has a book value of **$190.1 million (€162.2 million)** as of **June 30, 2025**, with interest-only periods extending to **Q1 2026** for the initial tranche and **Q1 2027** for subsequent tranches, at an interest rate of **9.95%**[211](index=211&type=chunk) - The loan is secured by substantially all of Valneva's assets and guaranteed by its subsidiaries. Minimum liquidity requirement is **€35.0 million** for 2025, and a twelve-month rolling minimum revenue requirement of **€115.0 million** is effective for 2025[212](index=212&type=chunk) Borrowings by Currency (June 30, 2025 vs December 31, 2024) | in € thousand | June 30, 2025 | December 31, 2024 | | :-------------- | :------------ | :---------------- | | Borrowings denominated in EUR | 3,539 | 3,540 | | Borrowings denominated in USD | 164,847 | 183,833 | | TOTAL BORROWINGS | 168,385 | 187,373 | - No material difference between the carrying amount and fair value of borrowings was found as of **June 30, 2025**[216](index=216&type=chunk) [Trade Payables and Accruals](index=33&type=section&id=5.15%20Trade%20payables%20and%20accruals) Total trade payables and accruals decreased to €21.1 million, with all amounts classified as current and their carrying amounts reflecting fair values Trade Payables and Accruals (June 30, 2025 vs December 31, 2024) | in € thousand | June 30, 2025 | December 31, 2024 | | :-------------- | :------------ | :---------------- | | Trade payables | 5,682 | 12,639 | | Accrued expenses | 15,433 | 22,883 | | TOTAL | 21,116 | 35,522 | | Less non-current portion | — | — | | CURRENT PORTION | 21,116 | 35,522 | - Total trade payables and accruals decreased to **€21.1 million** from **€35.5 million**[217](index=217&type=chunk) - All trade payables and accruals are current and their carrying amounts are considered to be the same as their fair values[217](index=217&type=chunk) [Contract Liabilities](index=33&type=section&id=5.16%20Contract%20liabilities) Contract liabilities decreased to €0.5 million, with €2.5 million in revenue recognized from the license and technology transfer obligation under the SII agreement for IXCHIQ Development of Contract Liabilities (June 30, 2025 vs December 31, 2024) | in € thousand | June 30, 2025 | December 31, 2024 | | :-------------- | :------------ | :---------------- | | BALANCE AS AT JANUARY 1 | 3,010 | 5,697 | | Revenue recognition | (3,220) | (462) | | Redemption | — | (4,777) | | Addition | 720 | 2,500 | | Exchange rate differences | 10 | 53 | | BALANCE AS AT CLOSING DATE | 520 | 3,010 | | Less non-current portion | — | — | | CURRENT PORTION | 520 | 3,010 | - Contract liabilities decreased to **€0.5 million** (from **€3.0 million**), with **€0.4 million** related to upfront payments for analytical support and drug substance manufacturing[219](index=219&type=chunk) - Revenue of **€2.5 million** was recognized in H1 2025 from the license and technology transfer obligation under the SII agreement for IXCHIQ[220](index=220&type=chunk) [Refund Liabilities](index=34&type=section&id=5.17%20Refund%20liabilities) Refund liabilities slightly increased to €26.4 million, with €18.4 million related to the Pfizer Collaboration and License Agreement and €6.6 million to the expected payment to GlaxoSmithKline Development of Refund Liabilities (June 30, 2025 vs December 31, 2024) | in € thousand | June 30, 2025 | December 31, 2024 | | :-------------- | :------------ | :---------------- | | BALANCE AS AT JANUARY 1 | 26,141 | 39,941 | | Additions | 4,023 | 4,013 | | Other releases | (1,505) | (19,901) | | Interest expense capitalized | 96 | 360 | | Exchange rate difference | (2,332) | 1,728 | | BALANCE AS AT CLOSING DATE | 26,423 | 26,141 | | Less non-current portion | (6,587) | (6,491) | | CURRENT PORTION | 19,836 | 19,650 | - Refund liabilities increased slightly to **€26.4 million** (from **€26.1 million**)[223](index=223&type=chunk) - **€18.4 million** (all current) is connected to the Collaboration and License Agreement with Pfizer, with **€2.1 million** in additions in H1 2025[223](index=223&type=chunk) - **€6.6 million** (non-current) relates to the expected payment to GlaxoSmithKline (GSK) due to the termination of strategic alliance agreements[224](index=224&type=chunk) [Cash Flow Information](index=35&type=section&id=5.18%20Cash%20flow%20information) Cash used in operations significantly decreased to €10.4 million in H1 2025, an improvement driven by better working capital management compared to the prior year Cash Generated/(Used) in Operations Reconciliation (H1 2025 vs H1 2024) | in € thousand | Six months ended June 30, 2025 | Six months ended June 30, 2024 | | :-------------- | :----------------------------- | :----------------------------- | | PROFIT/(LOSS) FOR THE PERIOD | (20,818) | 33,976 | | Gain from sale of Priority Review Voucher, net | — | (90,833) | | Total adjustments to reconcile profit/(loss) for the period to cash generated from/(used in) operations | 17,780 | 23,973 | | TOTAL CHANGES IN NON-CURRENT OPERATING ASSETS AND LIABILITIES | 456 | (1,117) | | Total changes in working capital | (7,788) | (31,153) | | CASH GENERATED/(USED) IN OPERATIONS | (10,369) | (65,154) | - Cash used in operations significantly decreased to **€10.4 million** in H1 2025 from **€65.2 million** in H1 2024[226](index=226&type=chunk) - Changes in working capital contributed to a **€7.8 million** cash outflow in H1 2025, an improvement from a **€31.2 million** outflow in H1 2024[226](index=226&type=chunk) [Contingencies and Litigations](index=35&type=section&id=5.19%20Contingencies%20and%20litigations) Valneva maintains a €5.2 million provision for potential legal costs related to challenges by former Intercell shareholders regarding the 2013 merger, with the final outcome pending court decision - Valneva holds a provision of **€5.2 million** to cover reassessed risk and potential legal costs related to challenges by former Intercell shareholders regarding cash compensation and share exchange ratio following the **2013 merger**[227](index=227&type=chunk)[228](index=228&type=chunk) - The final outcome of the litigation depends on the court's decision on specific legal points[228](index=228&type=chunk) [Related-Party Transactions](index=36&type=section&id=5.20%20Related-party%20transactions) Bpifrance is a related party, from whom Valneva borrowed €3.5 million, and aggregate key management compensation amounted to €4.2 million in H1 2025 - Bpifrance is considered a related party due to its influence and Board membership until **June 25, 2025**[230](index=230&type=chunk) - Valneva borrowed **€3.5 million** from Bpifrance, representing **80%** of French Tax Authorities receivables for Research Tax Credits (2021, 2022, 2023)[231](index=231&type=chunk)[233](index=233&type=chunk) - Aggregate compensation of key management amounted to **€4.2 million** in H1 2025 (H1 2024: **€3.5 million**), mostly salaries and share-based payment expenses[234](index=234&type=chunk) [Events After the Reporting Period](index=36&type=section&id=5.21%20Events%20after%20the%20reporting%20period) No events requiring adjustment or disclosure occurred between the reporting date (June 30, 2025) and the authorization date for financial statement issuance (August 11, 2025) - No events requiring adjustment to, or disclosure in, the financial statements occurred subsequent to the reporting date (**June 30, 2025**) and up to the date of authorization for issuance of the financial statements (**August 11, 2025**)[231](index=231&type=chunk) Responsibility Statement The content for the Responsibility Statement was not provided in the original document

Financial Performance - H1 2025 - Total revenues reached €97.6 million, representing a 38% year-over-year growth[10] - Product sales amounted to €91 million, driven by IXIARO®/JESPECT®, DUKORAL®, and IXCHIQ®[62] - IXCHIQ® sales showed significant growth, increasing by 688% to €7.5 million[62] - The company experienced a significant reduction in operating cash burn, targeting a 50% reduction compared to 2024[10] - Adjusted EBITDA was a loss of €6.0 million[64] Product Performance - H1 2025 - IXIARO®/JESPECT® sales increased by 30.6% to €54.7 million[62] - DUKORAL® sales increased by 16.4% to €17.4 million, including €1.1 million from doses supplied to Mayotte[62, 63] - Third-party product sales increased by 8.8% to €11.4 million[62] Financial Outlook - 2025 - The company projects product sales between €170 million and €180 million[70] - Total revenues are expected to be in the range of €180 million to €190 million[70] - R&D expenses are projected to be between €90 million and €100 million, partially offset by grant funding and R&D tax credits[70]

Core Viewpoint - Valneva SE reported strong financial results for the first half of 2025, with total revenues of €97.6 million, a 37.8% increase compared to the same period in 2024, while confirming its financial guidance for the year [5][6][28]. Financial Performance - Total revenues reached €97.6 million in H1 2025, up from €70.8 million in H1 2024, marking a 37.8% increase [6][28]. - Product sales amounted to €91.0 million, a 33.3% increase from €68.3 million in H1 2024 [6][10]. - The company reported a net loss of €20.8 million in H1 2025, compared to a net profit of €34.0 million in H1 2024, which included a one-time gain from the sale of a Priority Review Voucher [6][38]. - Cash and cash equivalents stood at €161.3 million as of June 30, 2025, slightly down from €168.3 million at the end of 2024 [43]. R&D and Regulatory Updates - Valneva is focused on the Phase 3 data readout for its Lyme disease vaccine candidate, VLA15, which is in collaboration with Pfizer [3][19]. - The company has made significant progress in clinical and regulatory areas, including the launch of IXCHIQ® in response to a chikungunya outbreak [7][15]. - IXCHIQ® sales increased to €7.5 million in H1 2025, compared to €1.0 million in H1 2024, benefiting from supply to La Réunion [16][17]. Commercial Developments - Valneva finalized a $32.8 million supply contract for IXIARO® with the U.S. Department of Defense [7][13]. - An exclusive agreement was signed with CSL Seqirus for the marketing and distribution of Valneva's vaccines in Germany [11]. - The company expects product sales to grow to €170-180 million in 2025, contributing to positive cash flow [6][40]. Cost Management - Operating cash burn was significantly reduced to €10.9 million in H1 2025 from €66.3 million in H1 2024, reflecting improved sales and cost management [6][40]. - Research and development expenses increased to €32.4 million in H1 2025, driven by costs related to the Shigella vaccine candidate [32].

Core Points - The FDA has lifted the recommended pause on the use of IXCHIQ for individuals aged 60 and older, following a thorough review by the European Medicines Agency (EMA) [1][2] - IXCHIQ is indicated for the prevention of disease caused by the Chikungunya Virus (CHIKV) in individuals 18 years and older at high risk of exposure [1][2] - The product's prescribing information has been updated to include reports of serious adverse events, particularly among elderly individuals with multiple underlying health conditions [2][4] Company Overview - Valneva SE is a specialty vaccine company focused on developing, manufacturing, and commercializing prophylactic vaccines for infectious diseases [7] - The company has advanced multiple vaccines from early R&D to approvals and currently markets three proprietary travel vaccines [8] - Revenues from the commercial business support the advancement of the vaccine pipeline, including candidates for Lyme disease, Zika virus, and other public health threats [9] Industry Context - Chikungunya virus (CHIKV) is a mosquito-borne disease that has caused significant outbreaks globally, with over 3.7 million cases reported in the Americas between 2013 and 2023 [6] - The World Health Organization (WHO) has identified chikungunya as a major public health problem, with the economic impact expected to grow due to climate change [6]

Company Overview - Valneva SE Sponsored ADR (VALN) shares increased by 17.4% to $7.32 in the last trading session, with a notable trading volume that exceeded the average [1] - The stock has gained 11.3% over the past four weeks, indicating a positive trend [1] Market Sentiment - The rise in VALN shares is attributed to positive market sentiment driven by recent regulatory successes and strong momentum in the biotech sector [2] - Investor confidence was bolstered by the European Medicines Agency (EMA) lifting age-based restrictions on Valneva's chikungunya vaccine, reflecting increasing regulatory support [2] Financial Expectations - Valneva is projected to report a quarterly loss of $0.27 per share, which is a year-over-year improvement of 27% [3] - Expected revenues for the upcoming quarter are $55.89 million, representing a 36.4% increase compared to the same quarter last year [3] Earnings Estimates - The consensus EPS estimate for Valneva has remained unchanged over the last 30 days, suggesting stability in earnings expectations [4] - The stock's price typically does not continue to rise without trends in earnings estimate revisions, indicating the importance of monitoring future earnings updates [4] Industry Context - Valneva is categorized within the Zacks Medical - Products industry, which includes other companies like GE HealthCare Technologies (GEHC) [5] - GEHC shares increased by 1% to $77.25, with a 6.3% return over the past month, indicating a positive trend in the same industry [5] GE HealthCare Overview - GE HealthCare's consensus EPS estimate for the upcoming report is $0.91, reflecting a 9% decrease from the previous year [6] - GE HealthCare also holds a Zacks Rank of 3 (Hold), similar to Valneva [6]

Company Overview - Valneva SE is a specialty vaccine company focused on developing, manufacturing, and commercializing prophylactic vaccines for infectious diseases, addressing unmet medical needs [6] - The company has advanced multiple vaccines from early R&D to approvals and currently markets three proprietary travel vaccines [7] - Revenues from its growing commercial business support the advancement of its vaccine pipeline, which includes candidates for Lyme disease, Shigella, Zika virus, and other public health threats [8] Vaccine Development and Regulatory Update - The European Medicines Agency (EMA) has lifted the temporary restriction on vaccinating individuals aged 65 and above with Valneva's chikungunya vaccine IXCHIQ® after a thorough safety review [1][2] - The review was initiated due to serious side effects observed mainly in elderly individuals with underlying medical conditions, but the EMA concluded that IXCHIQ® should be administered when there is a significant risk of chikungunya infection [2][3] - IXCHIQ® is effective in producing antibodies against the chikungunya virus, which is particularly beneficial for older individuals at increased risk of severe disease [3] Chikungunya Disease Context - Chikungunya virus (CHIKV) is a mosquito-borne disease causing debilitating symptoms, including fever and severe joint pain, with significant global outbreaks since 2004 [4][5] - The disease has been reported in over 110 countries, with more than 3.7 million cases in the Americas between 2013 and 2023, leading to a considerable medical and economic burden [5]

Company Overview - Valneva SE is a specialty vaccine company focused on developing, manufacturing, and commercializing prophylactic vaccines for infectious diseases, addressing unmet medical needs [6] - The company has advanced multiple vaccines from early R&D to approvals and currently markets three proprietary travel vaccines [7] - Revenues from its growing commercial business support the advancement of its vaccine pipeline, which includes candidates for Lyme disease, Shigella, Zika virus, and other public health threats [8] Industry Context - The chikungunya virus (CHIKV) is a mosquito-borne disease that has been identified in over 110 countries, with significant outbreaks reported since 2004 [5] - Between 2013 and 2023, more than 3.7 million chikungunya cases were reported in the Americas, indicating a substantial medical and economic burden [5] - The World Health Organization (WHO) has recognized chikungunya as a major public health problem, with the impact expected to grow due to climate change [5] Regulatory Update - The European Medicines Agency (EMA) has lifted the temporary restriction on vaccinating individuals aged 65 and above with Valneva's chikungunya vaccine IXCHIQ after a thorough safety review [1][2] - The EMA concluded that IXCHIQ should be administered when there is a significant risk of chikungunya infection, considering the benefits and risks for all age groups [2][3] - IXCHIQ was authorized in the European Union in June 2024, with a label extension granted in March 2025 for adolescents aged 12 and older [3]

Core Insights - Valneva SE has entered into an exclusive agreement with CSL Seqirus for the marketing and distribution of its three proprietary vaccines in Germany [1][2] - The agreement includes the commercialization of Valneva's chikungunya vaccine IXCHIQ® starting July 2025, and its Japanese Encephalitis vaccine IXIARO® and cholera/ETEC vaccine DUKORAL® from January 2026 [2] - This new agreement replaces a previous partnership with Bavarian Nordic, which is set to conclude at the end of December 2025 [2][3] Company Performance - Valneva's product sales reached €48.6 million in Q1 2025, with €42.8 million coming from proprietary vaccines [4] - The company anticipates product sales to grow to €170-180 million in 2025, contributing to positive cash flows for its commercial business [4] Strategic Focus - The partnership with CSL Seqirus is expected to enhance Valneva's commercial sales in Germany, leveraging CSL's strong presence in the travel vaccine market [4] - Valneva specializes in developing vaccines for infectious diseases, focusing on unmet medical needs and applying expertise across multiple vaccine modalities [5][6] Pipeline Development - Revenues from the commercial business support the advancement of Valneva's vaccine pipeline, which includes a Lyme disease vaccine candidate partnered with Pfizer and a Shigella vaccine candidate [7]

Core Insights - Valneva SE announced positive six-month antibody persistence and safety data for its Phase 2 clinical trial of the chikungunya vaccine IXCHIQ in children, supporting the initiation of a pivotal Phase 3 study in early 2026 [1][2][8] Company Overview - Valneva is a specialty vaccine company focused on developing, manufacturing, and commercializing vaccines for infectious diseases, with a strong track record in advancing multiple vaccines from early R&D to approvals [10][11] - The company currently markets three proprietary travel vaccines, including the world's first and only chikungunya vaccine, and has a pipeline that includes candidates for Lyme disease, Shigella, and Zika virus [12] Clinical Trial Results - The Phase 2 trial (VLA1553-221) involved 304 healthy children aged one to eleven years, demonstrating that a full dose of the vaccine elicited a more robust immune response compared to a half dose, with a 96.5% seroresponse rate at Day 180 [2][3][8] - The vaccine was well tolerated across all age groups tested, with no safety concerns identified, supporting the selection of the full dose for the upcoming Phase 3 trial [4][5][8] Market Context - Chikungunya poses a significant health risk, particularly in endemic areas, with Brazil reporting over one million cases from January 2019 to July 2024, and India reporting 370,000 cases during the same period [5][7] - The World Health Organization has identified chikungunya as a major public health problem, with the economic impact expected to grow due to climate change and the geographical spread of mosquito vectors [7]