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On Thursday, H.C. Wainwright reaffirmed its Buy rating and $18.00 price target for Valneva (EPA:VLS) SE (NASDAQ:VALN) shares, following the recent approval of the company’s Ixchiq vaccine in the United Kingdom (TADAWUL:4280). The stock, currently trading at $6.67, has shown strong momentum with a 27% gain in the past week. According to InvestingPro data, analyst targets range from $6.55 to $21, suggesting significant upside potential. The Medicines and Healthcare products Regulatory Agency (MHRA) granted the vaccine marketing authorization on February 5, 2025, for the active immunization against diseases caused by the chikungunya virus (CHIKV) in adults aged 18 and over.
Ixchiq, a live attenuated single-shot vaccine, has demonstrated in its final pivotal Phase 3 trial data the ability to induce a rapid and robust immune response against CHIKV. Notably, the vaccine’s effectiveness has been observed to last for at least three years in both younger and older adult groups.
The vaccine’s journey towards approval included a significant milestone on November 9, 2023, when the U.S. Food and Drug Administration (FDA) granted it accelerated approval. Subsequently, on February 29, 2024, the Advisory Committee on Immunization Practices (ACIP) recommended Ixchiq’s use, a recommendation that was adopted by the U.S. Centers for Disease Control and Prevention (CDC) in early March 2024.
Although Valneva reported modest Ixchiq sales of €0.8 million in the third quarter of 2024, the vaccine has also been approved in Europe and Canada, with commercial launches underway. InvestingPro analysis shows the company maintains a healthy balance sheet with a current ratio of 2.78, indicating strong liquidity to support its commercial expansion. While the company’s revenue stood at $176.52 million in the last twelve months, it’s currently operating with moderate debt levels. The company is optimistic about the vaccine’s market potential, expecting approval in Brazil within the current quarter and forecasting sales to surpass €100 million in the third year following the commercial launch. Valneva anticipates that the global market for chikungunya vaccines could exceed $500 million annually.
H.C. Wainwright’s analysis projects Ixchiq’s sales to reach €3 million in 2024, with a significant growth to €250 million by 2029. The firm maintains its positive outlook on Valneva’s stock, reiterating the Buy rating and $18 price target. InvestingPro subscribers have access to 12 additional investment tips and comprehensive financial analysis for VALN, including detailed profitability metrics and growth forecasts. Get the full picture with InvestingPro’s exclusive research report, part of our coverage of over 1,400 US equities.
In other recent news, Valneva SE has updated its financial and operational progress, revealing a 12% increase in product sales year-over-year. The company’s sales reached €112.5 million in the first nine months of 2024. Valneva has refined its annual product sales guidance to €160-170 million and projects total revenues between €170 million and €180 million. The company also predicts profitability from 2027, largely due to its Lyme disease vaccine candidate.
In addition to this, Valneva is preparing for the launch of its chikungunya vaccine, IXCHIQ, in Canada and France, with approvals pending in Brazil and the UK. The company has also joined forces with LimmaTech for a Shigella vaccine, which is currently the most advanced globally. The financial guidance includes other income of €100-110 million and research and development expenses of €65-75 million.
These recent developments indicate Valneva’s focus on enhancing commercial sales and advancing its research and development pipeline. The company has a forward-looking strategy with a robust pipeline of vaccine candidates and anticipates robust financial health in the coming years.
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