Valneva SE (NASDAQ:VALN) Q3 2022 Earnings Call Transcript

Arsene Guekam: Thank you for taking my question. First of all, the follow up question on R&D expenses. R&D costs are likely to go back from pre-COVID level, but do you expect any additional cost related to COVID-19 vaccine in 2023? The second question is on your manufacturing site, you stopped the manufacturing site of VLA201, but are there some additional cost related to the maintenance of this site and the left one is on chikungunya vaccine. How are you going to commercialize this vaccine by your own or are you looking for a partnership? Because there is no real synergy with the travel vaccine and you will need to build your own sales force.

Thomas Lingelbach: So let me probably start by your last question and your last comment. So please keep in mind that chikungunya. Chikungunya is targeting for segments. One is travel. So between there are people traveling to tropical subtropical areas people who live in North America, in Europe, in Australia. And here we have a huge synergy with our existing commercial infrastructure. So we are covering with our existing commercial infrastructure, which includes teams in North America, meaning U.S., Canada, in Europe we have €“ the UK we have France, we have Austria, we have the Nordics. And with that we cover 80 plus percent of the necessary travel markets with the existing teams and the existing infrastructure. The second part is related to stockpiling and potential outbreak preparedness.

Also here, of course, we will need to add resources, but we expect that overall we are well-positioned within our existing infrastructure. Then we have of course, a potential segment in institutions like military. And again, here we have existing and well established channels and infrastructure. When it comes to endemic countries, yes, of course for endemic countries, we have a partnership, an existing partnership with Instituto Butantan who have the right to endemic LMIC countries, so low medium income countries. And this is a partnership that we entered into and we announce already, so we will not commercialize the product ourselves in LMIC territories. And then maybe, the maintenance, yes, of course, we have a dedicated factory in Scotland for COVID-19.

At this point in time, we have not decided what we are going to do with this factory. And hence, we will keep the factory in a so-called warm stage. And this warm stage comes at a cost and which we have not disclosed and cannot disclosed at this point in time, but it’s not €“ as I said, a keeping warm cost base. So probably not material in the overall setting. With that, I give the floor to Peter for the other financial questions of COVID.

Peter Buhler: Yes, so there was about R&D expense expected in 2023. So there will be some residual R&D expense related to COVID as we are continuing or finalizing the last clinical trials that are running right now. And it will still continue into 2023, but it will of course be much, much lower than what we spent in 2022 or 2021.

Arsene Guekam: All right. Thank you.

Operator: One moment for our next question. Our next question comes from the line of Olga Smolentseva from Bryan Garnier. Your line is open.

Olga Smolentseva: Good afternoon. Congratulations on the progress, and thank you for taking my question. My first one on the recent ACIP meeting seems that vaccine efficacy in specifically adult population was sort of €“ was importance. So could you maybe reiterate that data in this age group, which is about 100 participants currently would be sufficient. And especially in the light, that Emergent study is reporting about 400 participants of this age group. And maybe the second question, is it basically asked what group to more clearly define at risk populations. So I’m just curious if you have any insights on how these more specific risk based groups could look like. Thank you.

Thomas Lingelbach: Hi, Olga, are you referring on your second question to Zika or to Lyme?

Olga Smolentseva: On Zike.