Valneva SE (NASDAQ:VALN) Q3 2023 Earnings Call Transcript

Thomas Lingelbach: Samir, excellent question. So I think, first of all, I mean, the question is, is it an area where there has been an outbreak? Or is there an area where there is an actual outbreak? Or is it an area where there might be an outbreak coming up very soon. It is not 100% clear from what has been drafted thus far. And it is very — it is also not clear how outbreak is defined. And so basically, today, as you know, we have seen an outbreak literally in every single country in South America. But we have also seen geographically, I would say, distinct outbreaks in the southern part of Europe. We have seen it in France. We have seen it in Italy. We have seen it in Spain. So I think this whole definition around, let’s say, outbreak, outbreak risk, I think there is a need for refinement and for precision, I would say. And we hope that this will come as part of the further ACIP process, leading then finally to a vote in February, hopefully.

Samir Devani: Is there a resource where a traveler can go online and know if they’re going somewhere there’s a chikungunya outbreak?

Thomas Lingelbach: In terms of actual outbreak, I mean, the only thing that I’m aware of is that WHO reports generally outbreaks and outbreaks here — and — but I — also here, we have seen different definitions of outbreak. So I’m not aware that there is a real standardized kind of information platform. But I will be — very happily take this as a follow-up action Samir and get back to you on that one.

Samir Devani: Okay, that’s great. And then maybe a couple of questions for Peter. There’s a significant reduction in the refund liabilities on the balance sheet. And obviously, a significant payment was made in the quarter. I’m assuming it looks like there’s going to be a similar payment made for Q4. Just correct me if I’m wrong on that. And then once that payment has being made, how far are you away from being capped out in terms of your liability to Pfizer?

Peter Buhler: Yes, Samir, a great question, obviously. So — and we — as we said, when I talked about cash, I did mention that this cash situation at the end of September takes into account the significant payment to Pfizer. Now you see how the refund liability in our balance sheet is reduced. Now how much we pay in Q4 and thereafter, we have not guided. And so I cannot disclose it, of course, in this call. But we’ve always said we will be done paying for ticks — or for Lyme in the first half year of 2024.

Samir Devani: Okay. Great. And then final question, just on the finance expense, Peter, in Q3, specifically Q3, that went up quite a lot. And is that just — I think, Peter, you talked about non-euro cash assets, I assume. Is that just a translation effect again in Q3?

Peter Buhler: Yes, that’s absolutely correct. It’s translation effect. That’s basically the effect between U.S. dollar and euros.

Operator: Our next question comes from the line of Max Herrmann of Stifel.

Max Herrmann: Three, if I may. Firstly, just on the chikungunya program. Conceptually, how would you just — I’m trying to get my head around, trying to understand this Phase IV commitment. And how would you conduct logistically an outbreak study in chikungunya, given the infrequency and the uncertainty about which region it will be? That’s the first question. Second is just on, again, trying to get conceptually about the booster dose with the Lyme disease VLA15, do you think — and do you have any data to know whether this would be a seasonal booster that you would need? Or how frequently, I know, obviously the trial design requires boosters in the second year but do you think that is the right way to go forward or where would you need the booster?