Valneva Shares Plunge As UK Terminates COVID-19 Vaccine Contract: What You Need Know

The U.K. government has terminated its COVID-19 vaccine contract with Valneva SE VALN over alleged breach of obligations.
Related Content: Valneva Initiates Rolling Submission For COVID19 Vaccine Candidate In U.K.
"HMG has alleged that the Company is in breach of its obligations under the Supply Agreement, but the Company strenuously denies this," it added.
Britain has ordered 100 million doses of Valneva's vaccine candidate, VLA2001, and had an option to secure an additional 90 million doses. The total value of these 190 million doses is around €1.4 billion.
The vaccine candidate is currently in Phase 3 trial, with results expected to be available early in the fourth quarter. Valneva has completed recruitment for VLA2001's pivotal Phase 3 trial "Cov-Compare" (VLA2001-301) with over 4,000 randomized participants.
Valneva's COVID vaccine candidate uses Dynavax Technologies Corporation's DVAX CpG 1018 as an adjuvant.
Under Dynavax's existing supply agreement for CpG 1018, purchase orders submitted by Valneva are cancellable if the U.K. Government reduces or terminates its order for VLA2001.
Valneva has not yet canceled any outstanding purchase orders for CpG 1018. Dynavax has the right to retain any portion of the purchase price for CpG 1018 made in advance by Valneva and any CpG 1018 manufactured but not yet delivered.
Based on its portfolio of COVID-19 collaborations, Dynavax reiterates that its CpG 1018 supply contracts continue to represent an approximately $300 million - $400 million aggregate revenue opportunity in 2021.
Price Action: VALN stock is down 40.20% at $27.97, and DVAX stock dropped 11.10% at $15.60 during the premarket session on the last check Monday.

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