Valneva Tries Reviving COVID-19 Vaccine Play As It Talks With Potential Partner For An Updated Shot

Valneva SE VALN is in talks with a potential partner to produce an updated version (second generation) of its COVID-19 vaccine that targets new variants of the infection.
Valneva has won regulatory approval in the European Union and some other countries for its first-generation vaccine but said it had suspended manufacturing in light of low order levels.
"The company is in active discussions with a prospective partner for potentially funding the development of a second-generation COVID-19 vaccine," Valneva said.
"These ongoing discussions may continue for several months and may not lead to an agreement," added Valneva.
Related: Valneva Cuts Ties With Its COVID-19 Vaccine Manufacturing Partner In Germany.
"Market expectations have been that the company would be winding down its COVID-19 vaccine activities, hence the bounce..." said Rx Securities Managing Director Samir Devani, adding that he advised investors to consider any COVID-19 activities as an upside option for the stock, cited Reuters report.
The company's chief executive was cited as saying the company would provide future updates "if and when" it reaches a deal.
In parallel, Valneva is in discussions with various governments and has initiated regulatory processes with additional regulatory authorities to deploy the remaining inventory into international markets in the next twelve months.
The company also expects to report additional clinical data in Q4 of 2022, notably heterologous booster data, which may potentially support the positioning of its inventory.
Price Action: VALN shares closed at $11.01 on Friday.