Valneva Consolidates R&D Operations Amid Mixed News on Vaccine Development

French vaccine developer Valneva has announced a significant restructuring of its operations, closing its Nantes site and consolidating R&D activities. This move comes as the company faces both promising developments and regulatory challenges in its vaccine portfolio.

R&D Consolidation and Job Cuts

Valneva is shuttering its Nantes location, which currently houses both operational and preclinical R&D activities. The closure will result in the elimination of 30 out of 39 positions at the site, primarily affecting R&D roles. All French operations will be consolidated at the company's Lyon location, while R&D work will be centralized at Valneva's Vienna site.

The decision to close the Nantes facility stems from several factors, including high fixed infrastructure costs, overlapping R&D activities with the Vienna site, and a lack of revenue generation. Valneva's spokesperson emphasized that this move is part of ongoing efforts to enhance operational effectiveness and position the company for long-term success.

Lyme Disease Vaccine Progress

On a more positive note, Valneva and its partner Pfizer have reported encouraging results from a phase 2 study of their Lyme disease vaccine candidate. The full dataset, released on November 26, demonstrated a robust secondary immune response and favorable safety profile across all age groups, six months after a third booster dose was administered.

Pfizer is currently conducting a late-stage trial for the vaccine, with results expected in the first half of next year. If the phase 3 trial supports it, the companies plan to file for regulatory approval in both the U.S. and Europe in 2026.

Regulatory Setback for Chikungunya Vaccine

The consolidation announcement follows a significant setback for Valneva's chikungunya vaccine, Ixchiq. In August, the FDA suspended Valneva's license for Ixchiq in the United States, citing serious safety concerns. The regulator pointed to 21 hospitalizations and three deaths in older adults, including one death from encephalitis directly attributed to the live-attenuated vaccine.

This temporary suspension has added pressure on Valneva's mid-term revenues and R&D investment capacity, according to the company spokesperson. However, they emphasized that the decision to streamline R&D operations is primarily driven by the need to position the company for long-term success.

Despite these challenges, Valneva continues to market two other commercial vaccines: Ixiaro (also known as Jespect) for Japanese encephalitis and Dukoral for cholera.