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Valneva(VALN) - 2024 Q3 - Earnings Call Transcript
ValnevaValneva(US:VALN)2024-11-09 18:10

Financial Data and Key Metrics Changes - Product sales reached €112.5 million, a 12% increase year-over-year, while total revenues were €116.6 million compared to €111.8 million in the first nine months of 2023 [36][40] - IXIARO sales increased by 31% to €66 million, driven by growth in both the travel segment and US military [36] - Adjusted EBITDA improved from a loss of €46 million to a positive EBITDA of €48.6 million [44] Business Line Data and Key Metrics Changes - DUKORAL sales grew by 6% to €22.3 million, with a significant 85% growth in Q3 [37][38] - IXCHIQ, the chikungunya vaccine, reported sales of €1.8 million in the US by September 30th [39] - Gross margin for IXIARO improved to 58.8% from 47.2% year-over-year, while total gross margin excluding IXCHIQ reached 48.6% [40][41] Market Data and Key Metrics Changes - The number of travelers to chikungunya endemic countries is expected to exceed pre-COVID levels, with a projected growth of 22% by 2030 [46] - The global market for a potential Shigella vaccine is expected to exceed $500 million annually, with significant demand in endemic countries [27] Company Strategy and Development Direction - The company is targeting sustained profitability from 2027 onwards, primarily driven by the success of the Lyme disease vaccine program [9] - Focus on growing commercial sales and advancing an attractive R&D pipeline, including programs for Shigella and Zika [11][12] - The company aims to expand access to IXCHIQ globally, with upcoming approvals in Brazil and the UK [22] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the long-term prospects of IXCHIQ despite slow uptake in the US market [10] - The company is monitoring performance indicators for IXCHIQ and expects to provide updated midterm guidance in the coming months [78] - Management highlighted the importance of the MMWR publication for accessing the retail channel in the US [57] Other Important Information - The cash position at September 30th was reported at €156.3 million, with a significant decrease in cash used in operating activities [45] - Research and development expenses increased due to tech transfer costs related to the IXIARO and IXCHIQ manufacturing operations [42] Q&A Session Summary Question: Update on IXIARO orders and DOD - Management expects stable demand for IXIARO from the DOD, estimating around 200,000 doses annually [54][55] Question: IXCHIQ sales growth in Q3 - Management noted that sales were impacted by channel inventory and anticipated improved growth moving forward [61] Question: Update on VLA2112 for Epstein-Barr Virus - The company is evaluating different antigen compositions and expects to conclude on the lead vaccine design next year [68][70] Question: R&D expenses and transfer costs - Transfer costs will continue into 2025, ending early 2026 as manufacturing operations transition to the new site [72] Question: IXCHIQ midterm guidance - Management is monitoring uptake trends and will provide updated guidance based on visibility from launches in Canada and Europe [78] Question: Gross margins and idle costs - Management expects IXIARO gross margins to continue improving, with idle costs decreasing as operations transition to the new facility [79][80]