LONDON, Sept 14 (Reuters) – Britain cancelled its contract for about 100 million doses of a COVID-19 vaccine being developed by France’s Valneva (VLS.PA) partially as a result of it was clear it might not be accepted to be used within the nation, UK Well being Secretary Sajid Javid mentioned on Tuesday.
“There are business causes that we have now cancelled the contract, however what I can inform her is that it was additionally clear to us that the vaccine in query that the corporate was growing wouldn’t get approval by the MHRA right here within the UK,” he mentioned in response to a query from a Scottish lawmaker.
Shares in Valneva plunged 35% on Monday after it mentioned the British authorities had ended a COVID-19 vaccine provide deal that would have been price as much as 1.4 billion euros ($1.65 billion).
The shares made up a few of the misplaced floor on Tuesday, regaining greater than 8%, to shut at 12.60 euros. At that degree, they’re nonetheless up 62.6% because the begin of 2021.
A French authorities supply informed Reuters discussions between Valneva and the European Fee had been ongoing and superior.
“The EU remains to be on this vaccine”, the supply mentioned, including Valneva was additionally being positioned, in France a minimum of, as a booster shot, similar as can be Sanofi (SASY.PA), which has but to have COVID-19 shot authorised.
Valneva’s COVID-19 vaccine candidate, VLA 2001, depends on an inactivated virus, just like flu vaccines, and is seen by some as having the potential to win over folks cautious of vaccines that use new mRNA expertise.
The corporate mentioned on Monday that the British authorities had alleged it was in breach of its obligations beneath the provision settlement. It mentioned it strenuously denied the cost.
The vaccine is being produced in Livingston, Scotland, utilizing an adjuvant made by U.S. firm Dynavax (DVAX.O). The power has capability to supply round 200 million doses in 2022.
Valneva has mentioned the UK authorities had choices that would have introduced the order to 190 million doses by 2025.
Javid mentioned the British and Scottish governments can be working collectively to see what they may do to safe the way forward for the power.
Reporting by Paul Sandle; Further reporting by Sarah White in Paris, Modifying by Alistair Smout and Steve Orlofsky
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