On Wednesday, H.C. Wainwright adjusted its outlook on Valneva SE (NASDAQ:VALN), reducing the price target to $23 from the previous $26 while maintaining a Buy rating on the stock. The adjustment follows Valneva's announcement on September 13, 2024, regarding the finalization of its private placement, which raised €61,180,000. The placement involved the issuance of 23,000,000 new ordinary shares at a price of €2.66 per share, each with a nominal value of €0.15.
The raised capital is earmarked for the advancement of Valneva's clinical programs, including Phase 3 pediatric and Phase 4 studies for its chikungunya virus vaccine, Ixchiq, as well as the anticipated Phase 2 trials for vaccine candidates targeting Shigella and Zika. Additionally, funds from the private placement are intended to support the ongoing launch of Ixchiq, pre-clinical research and development activities, and general corporate purposes.
H.C. Wainwright's decision to revise the price target is based on the capital raise and the resulting dilution of shares. The firm reiterated its confidence in the stock by maintaining a Buy rating, despite the reduction in the price target.
Valneva's efforts to expand its vaccine portfolio and advance its clinical programs are crucial steps for the company's growth and development. The successful capital raise demonstrates investor support for Valneva's strategic initiatives and its future prospects in the vaccine market. With the updated model reflecting the recent financial developments, H.C. Wainwright continues to view Valneva's stock positively.
In other recent news, Valneva SE reported promising trial results for its Lyme disease vaccine candidate, VLA15, leading H.C. Wainwright to maintain a Buy rating for the company. The Phase 2 VLA15-221 study revealed positive immunogenicity and safety data, with a significant anamnestic antibody response across all six serotypes covered by VLA15. The company is also progressing with a Phase 3 pivotal study in Lyme disease, set to conclude by the end of 2025, and anticipates a potential market launch of the vaccine in 2027.
In addition to these developments, Valneva has received approval from the European Commission for Ixchiq, its chikungunya virus vaccine. This regulatory milestone came after a unanimous endorsement by member states and followed the vaccine's accelerated approval by the U.S. Food and Drug Administration and Health Canada. The company's financial projections forecast that Ixchiq sales will surpass €100 million in the third year following its launch.
H.C. Wainwright also maintained a Buy rating for Valneva following the approval of Ixchiq. The company projects that the global market for chikungunya vaccines could exceed $500 million annually, and H.C. Wainwright's financial projections forecast Ixchiq sales to reach €15 million in 2024 and grow to €310 million by 2028. These recent developments underscore the growing potential of Valneva's vaccines in the global market.
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