Valneva raises over 60 million euros, shares fall on the stock market

The Franco-Austrian pharmaceutical group Valneva announced on Friday that it had raised more than 60 million euros via a capital increase to finance in particular its vaccine program against shigellosis, a deadly diarrheal disease. The news caused the stock price to plummet. At 10:10 a.m., the share price fell 7.78% to 2.894 euros, after having fallen by more than 10% in early trading.

The company plans to use the proceeds of €61.18 million to continue funding the development of clinical programs for its vaccine candidates against shigellosis, for which it recently acquired an exclusive worldwide license, and against the Zika virus. The capital increase will also be used to support the commercialization of its current vaccine against chikungunya.

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200 million the dollars they this

This fundraising corresponds to the issuance of approximately 23 million new shares, at a unit price of 2.66 euros, representing a discount of 15.4% compared to the closing price of the share the previous day. Valneva estimates that it will have “resources necessary to finance its operating activities, excluding the repayment of its debt, until such time as the potential milestone revenues and commercial revenues from its Lyme disease program enable it to operate in a sustainably profitable manner”As of the end of June 2024, the debt of the company specializing in vaccines used to prevent infectious diseases was $200 million.