Date: 2015-06-22
Type of information: Termination of the agreement
Compound: Ixiaro®/Jespect®
Company: Valneva (France- Austria) GSK (UK)
Therapeutic area: Infectious diseases
Type agreement: distribution
Action mechanism: vaccine
Disease: Japanese encephalitis
Details: * On June 22, 2015, Valneva announced that it has decided to take direct control over the marketing and distribution of Ixiaro®, its travel vaccine against Japanese Encephalitis, by terminating the marketing and distribution agreement with GSK related to Ixiaro®, signed in 2006 with Novartis Vaccines. This important step has been possible because of specific contract provisions following the completion of the asset swap between Novartis and GSK. This decision supports Valneva’s strategy to build an independent and fully integrated vaccines biotech company and unlock synergies with Dukoral®, Valneva’s recently acquired second travel vaccine.
Valneva expects to significantly improve sales margins and profitability from Ixiaro®, its largest revenue contributor, as of 2016 and beyond. Prior to termination, Valneva recognized 50% of in-market net sales revenues of Ixiaro® to private travellers and two thirds of US military sales. Going forward, Valneva will recognize 100% of sales from markets where it distributes the product directly and an improved margin in other markets under country-specific marketing & distribution arrangements.
Following a transition period which is anticipated to last until early 2016 in all major territories, Valneva will market and distribute its JE-Vaccine through a combination of its own sales & marketing teams and country-specific marketing & distribution arrangements with established local partners. In particular, Valneva will be able to fully leverage its sales and marketing team in the Nordic countries (Sweden, Norway, Denmark and Finland) which was inherited through the acquisition of Crucell Sweden earlier this year, as well as its newly established teams in France, UK and Canada.
Valneva will also distribute Ixiaro® directly to its most important customer, the US military, as it had done from 2009 through 2013. For other key markets or segments, including the U.S. private market and Germany, the company is in advanced discussions for entering into exclusive wholesale distribution agreements.
Valneva now expects €20 to 25 million sales from Ixiaro® in 2015 compared to its previous guidance of approximately EUR 30 million, resulting in total revenues coming in at the low end of the previously expected range of € 75 to € 85 million. The Company expects to fully make up for this short-term adverse financial impact already in 2016.
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