Scots Valneva plant seals £1.3 billion Covid-19 deal
Drug delivery on course for next year
The UK government today signed a £1.3 billion (€1.4bn) deal with French COVID-19 vaccine developer Valneva to produce 190 million doses of its experimental drug at its facility in Livingston over the next five years.
In addition to the doses, the UK government will help fund ongoing clinical trials evaluating the VLA2001 drug and has also invested in Valneva’s manufacturing facility to help increase production, enable site expansion and create job opportunities.
VLA2001 will leverage Valneva’s already commercialised and validated Japanese encephalitis (JE) vaccine manufacturing platform.
Under the agreement, if vaccine development is successful, Valneva will provide the UK government with 60m doses in the second half of 2021.
The UK Government then has options over 40 million doses in 2022 and a further 30 million to 90 million doses, in aggregate, across 2023 to 2025.
Investment heading to Valneva’s Livingston plant
Revenue from these options could amount to almost €900 million.
The UK government is also investing up-front in the scale up and development of the vaccine, with the investment being recouped against the vaccine supply under the partnership. The agreement follows the initial intent to participate in the UK Government’s COVID-19 vaccine response announced in July.
Valneva previously announced an agreement in principle with the UK government for the supply of vaccine doses and a binding preliminary agreement to support expansion of its UK-based manufacturing facilities.
David Lawrence: great working relationship
David Lawrence, chief financial officer at Valneva, said “Through our recent discussions we’ve built a great working relationship with UK Government. I’d like to acknowledge the contributions of UK government task force and colleagues as well as other stakeholders including West Lothian, Scottish and UK politicians who are supporting the ongoing work. We see a fantastic spirit across all stakeholders to make this partnership succeed.”
Thomas Lingelbach, CEO of Valneva, said: “We made the early decision to choose a proven and well-established inactivated vaccine approach which is further validated by this partnership.”
UK Business Secretary Alok Sharma said: “Having visited Valneva just last month, I have seen first-hand the incredible work they are doing to develop and manufacture a Covid-19 vaccine.
“This new agreement could help us vaccinate millions of people across the country, as well as help create a UK vaccine manufacturing facility to speed up access to a potential Covid-19 candidate and boost the country’s resilience against future pandemics.”