Valneva reaches settlement with Britain on COVID-19 vaccine deal termination

·1-min read
Illustration shows Valneva logo

PARIS (Reuters) -French drugmaker Valneva said on Wednesday it reached a settlement agreement with the British government linked to the termination of the supply agreement for its COVID-19 vaccine candidate VLA2001.

Valneva said in September that it had received a termination notice from the British government of its COVID-19 vaccine supply deal, sending its shares plunging 35% that day.

The settlement agreement resolves certain matters relating to the obligations of the company and the British government following the termination of the supply agreement, Valneva said.

Valneva's statement said it also resolved matters in relation to the separate agreement relating to clinical trials of VLA2001 (the vaccine) in the United Kingdom, which remains in place.

Separately, Valneva said earlier this month it had proposed a remediation plan after receiving the European Commission's notice of intent to terminate the advance purchase agreement for its inactivated COVID-19 vaccine candidate.

Valneva had warned on May 16 that its COVID-19 vaccine agreement with the European Commission was likely to be scrapped as Brussels had informed the company of its intent its intent to terminate the advance purchase agreement.

(Reporting by Dominique Vidalon, Editing By Tassilo Humel and Jane Merriman)

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