dailyloe.com – Valneva, a French biotech company, is set to lay off up to 15% of its workforce due to declining demand for travel vaccines.
The decision follows a significant revenue drop in the first quarter of 2026, with earnings falling to 30.9 million euros from 49.2 million euros in the same period last year.
Valneva linked this decline to the planned wind-down of its distribution of Bavarian Nordic vaccines in specific areas.
Additionally, the company revised its sales expectations for 2026 downward, estimating between 135 million euros and 150 million euros, compared to previous projections of 145 million euros to 160 million euros.
This adjustment reflects “an emerging adverse trend in travel vaccine uptake across key markets, driven by geopolitical factors,” according to Valneva.
Valneva’s challenges extend beyond commercial issues, as it seeks approval for its Lyme disease vaccine in partnership with Pfizer, despite failing to meet key trial endpoints.
Furthermore, the company recently withdrew its chikungunya vaccine, Ixchiq, from the U.S. market after the FDA raised safety concerns, including a death linked to the vaccine.
Chief Financial Officer Peter Bühler noted, “Our first‑quarter sales reflect the sharp decline in third-party products and our planned focus on proprietary products.”
Bühler also stated that the geopolitical situation is negatively impacting travel.
Valneva aims to reduce operating cash burn and implement cost-saving measures to maintain a solid financial position through potential regulatory approvals for its Lyme disease vaccine.
The company is also embarking on a restructuring plan to streamline global operations, contributing to the workforce reduction.
