SATURDAY, SEPTEMBER 24, 2016

Valneva SE sells CMO in France to Indian biopharmaceutical company

Valneva SE, a European biotechnology company, announced on Friday that it signed a binding term sheet to sell its clinical manufacturing operations in Nantes, France, to Biological E, an Indian biopharmaceutical company.

Valneva's sale of the CMO unit is part of the company's strategy to realize cost synergies of $6.6 million to $7.9 million after the merger between Intercell AG and Vivalis SA that created Valneva. The divestment of the CMO facility, which manufactures clinical trial materials, is expected to contribute up to $3.96 million in cost savings.

Valneva will also receive an undisclosed purchase price that exceeds the current value of the facility.

"This agreement demonstrates that Valneva's merger strategy to become a leading sustainable biotech company in antibodies and vaccines, is on track," Thomas Lingelbach, Valneva's president and CEO, and Franck Grimaud, Valneva's chief business officer, said. "We are pleased to broaden our excellent strategic partnership with Biological E with this transaction and believe that it will create additional opportunities for our two companies going forward."

Valneva and Biological E first partnered in 2005 to develop and commercialize a novel Japanese encephalitis vaccine. The vaccine is now being commercialized in India under the trade-name JEEV. The two companies are also in discussions to extend the partnership into vaccine development programs based on Valneva's EB66 manufacturing platform.

The EB66 cell line is a system for the production of human and veterinary viral and therapeutic vaccines.