Valneva SE (INRLF) (H1 2024) Earnings Call Highlights: Navigating Growth Amidst Revenue Challenges

GuruFocus News
4 min read

In This Article:

  • Product Sales: EUR68.3 million, 7% growth over prior year on a comparable basis.

  • IXIARO Sales: EUR41.9 million, 38% increase year-over-year.

  • DUKORAL Sales: EUR14.9 million, 13% decline year-over-year.

  • IXCHIQ Sales: EUR1 million in the United States by June 30.

  • Total Revenues: EUR70.8 million, 4% decrease from the first half of 2023.

  • Gross Margin (IXIARO): 57.5% compared to 40.2% in the first half of 2023.

  • Total Gross Margin (excluding IXCHIQ): 47.7%, up from 40% in the first half of 2023.

  • R&D Expenses: EUR29.7 million, up from EUR26 million in the first half of 2023.

  • Marketing and Distribution Expenses: EUR23.2 million, approximately 15% increase.

  • Operating Profit: EUR46.7 million, compared to an operating loss of EUR35 million in the prior year.

  • Adjusted EBITDA: Improved from minus EUR28 million to positive EUR56 million.

  • 2024 Guidance: Product sales of EUR160 million to EUR180 million; other income of EUR100 million to EUR110 million; R&D expenses of EUR60 million to EUR75 million.

Release Date: August 13, 2024

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

  • Valneva SE (INRLF) reported product sales of EUR68.3 million for the first half of 2024, including first recognized sales for IXCHIQ, aligning with anticipated supply and sales phasing.

  • The company achieved significant R&D milestones, including the development of a new Shigella vaccine and strategic partnerships to accelerate its progress.

  • Valneva SE (INRLF) received additional IXCHIQ approvals in Canada and Europe, slightly ahead of schedule, allowing for market launches in the last quarter of the year.

  • The company maintained a solid cash position due to the successful sale of a priority review voucher and deferral of loan reimbursement.

  • Valneva SE (INRLF) reported positive Phase 3 IXCHIQ data in adolescents and published two-year antibody persistence data, supporting further label extensions.

Negative Points

  • DUKORAL sales declined by 13% year-over-year due to reduced marketing investments and regulatory evaluations.

  • Total revenues decreased by 4% compared to the first half of 2023, driven by lower revenues from R&D collaborations and prior year COVID-19 vaccine sales.

  • The total gross margin was adversely affected by IXCHIQ-related overhead costs and idle costs related to new manufacturing sites.

  • Research and development expenses increased from EUR26 million to EUR29.7 million, mainly due to tech transfer costs and higher R&D spend for IXCHIQ.

  • The company faces challenges in building awareness and adoption for the new chikungunya vaccine, IXCHIQ, as it is a brand-new disease and vaccine.

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