Valneva Provides Business Update on COVID-19 Situation

Saint Herblain (France), March 24, 2020 – Valneva SE (“Valneva” or “the Company”), a specialty vaccine company, today provided an update on its operations as the COVID-19 situation evolves.

Valneva is actively managing its operations to maintain business continuity while taking measures to protect the health and wellbeing of its employees, their families and the local communities in which they live and work. The Company has instituted a work from home policy and for critical areas of its business that necessitate employees to be onsite, such as certain R&D and manufacturing functions, the Company is implementing strategies to promote additional social distancing. The continuous supply of Valneva’s products to its patients and customers is of utmost priority to the Company. Valneva’s scientific and commercial teams are in close dialogue with their partners and are providing project-specific information on a real-time basis.

Valneva is cognizant of the impact of the COVID-19 outbreak on the travel market. As the provider of two travel vaccines, one against Japanese encephalitis and one against cholera/ETEC, the Company expects that its 2020 revenues may be adversely affected. The Company estimates that 2020 product sales revenues could be impacted by between €20 million and €40 million (compared to guidance of €125 million to €135 million announced previously). First-quarter sales 2020 will not be materially adversely affected as the impact of the COVID-19 crisis did not affect its major markets until March.

This reduction in product sales revenue, offset by the likely delay in chikungunya Phase 3 initiation and therefore delay of initial Phase 3 costs, may lead to negative EBITDA of up to €50 million in 2020 compared to earlier guidance of negative EBITDA of up to €35 million.

While uncertainty remains around the duration, severity and geographic scope of the COVID-19 outbreak, the Company is well positioned to deal with the crisis. At the end of December 2019, Valneva reported cash of €64.4 million and, in February 2020, the Company announced an $85 million debt financing arrangement; the Company has drawn $45 million from this facility to date. Valneva is also well placed to take cost management measures if required and has commenced a review of non-mission critical projects and expenses. Excluding further cost containment measures, national government support mechanisms and Lyme partnering but including full draw down of the $85 million debt facility, the cash position at the end of 2020 could be in the range of €35 million to €40 million.