Valneva Se · EURONEXT:VLA

Valneva — Q1 2016 Earnings Presentation

28 slides from Valneva's earnings presentation, May 11, 2016

  1. Slide 1: Valneva presents its Q1 2016 financial results

    Valneva presents its Q1 2016 financial results Analyst Presentation May 11, 2016

  2. Slide 2: Forward-looking statements

    Forward-looking statements This presentation contains certain forward-looking statements relating to the business of Valneva, including with respect to the progress, timing and completion of research, development and clinical trials for product candidates, the ability to manufacture, market, commerc

  3. Slide 3: Agenda

    Agenda 1. Introduction – Newsflow – Thomas Lingelbach 2. Financial report Q1 2016 – Reinhard Kandera 3. Commercialized products & EB66® – Franck Grimaud 4. R&D programs – Thomas Lingelbach 5. 2016 outlook – Thomas Lingelbach 6. Q&A Valneva Q1 2016 Analyst Presentation May 11, 2016 3

  4. Slide 4: Valneva's newsflow

    Valneva’s newsflow March 2016 + Valneva presented at the 16th World Vaccine Congress in Washington D.C. + Valneva announced FY 2015 results, confirmed positive trend towards strong revenue growth and EBITDA break-even, and presented its 2020 strategy + Valneva signed $42 million IXIARO® supply contr

  5. Slide 5: Agenda

    Agenda 1. Introduction – Newsflow – Thomas Lingelbach 2. Financial report Q1 2016 – Reinhard Kandera 3. Commercialized products & EB66® – Franck Grimaud 4. R&D programs – Thomas Lingelbach 5. 2016 outlook – Thomas Lingelbach 6. Q&A Valneva Q1 2016 Analyst Presentation May 11, 2016 5

  6. Slide 6: Q1 2016 financial results

    Q1 2016 financial results Compared to Q1 2015 (IFRS, € million) Revenues & Grants COGS R&D Expenses Q1 2016 Q1 2015 Q1 2016 Q1 2015 (5.8) (5.5) (12.9) (12.1) 24.7 19.5 Q1 2016 Q1 2015 EBITDA* Net profit/loss Cash position Q1 2016 Q1 2015 Q1 2016 Q1 2015 9.8 42.6 33.4 0.0 (1.0) (5.0) 31/03/2016 31/12

  7. Slide 7: Q1 2016 profit & loss (unaudited)

    Q1 2016 profit & loss (unaudited) € in thousand 3 months ended March 31 2016 2015 Revenues and grants 24,687 19,501 Cost of goods and services (12,921) (12,110) R&D expenses (5,798) (5,504) Distribution and marketing expenses (3,295) (1,218) General and administrative expenses (3,765) (2,768) Amorti

  8. Slide 8: Business segment overview

    Business segment overview Two profitable segments funding R&D pipeline Revenues Operating profit/loss (before amortization*) Commercial products €20.5m €4.8m 45% gross margin 23% operating margin Technologies & services €2.7m €0.6m 41% gross margin 23% operating margin Proprietary R&D €1.4m (€2.6m)

  9. Slide 9: Financial analysis Q1 2016

    Financial analysis Q1 2016 35.1% increase to €20.4m Product sales Driven by strong IXIARO®/JESPECT® sales (up 50.2% compared to Q1 2015) Total revenues €24.7m (up 26.6% compared to Q1 2015) - on track to meet €90-100m & grants revenue goal for FY 2016 €12.9m total COGS yielding 47.7% gross margin, i

  10. Slide 10: Financial analysis Q1 2016 (continued)

    Financial analysis Q1 2016 (continued) Amortization of €1.7m non-cash amortization charges on acquired intangible assets intangible assets Financial income and Last year’s Q1 2015 includes €13.2m retrospective gain related to Crucell expenses Sweden and DUKORAL® acquisition EBITDA (Slightly) positiv

  11. Slide 11: 2016 financial outlook confirmed

    2016 financial outlook confirmed Strong revenue growth and positive trend towards EBITDA break-even Revenues €90 – 100m total revenues (up to 20% growth vs. 2015) €70 – 80m product sales (up to 30% growth vs. 2015) Commercial products 50% gross margin on product sales (vs. 32% in 2015) R&D investmen

  12. Slide 12: Agenda

    Agenda 1. Introduction – Newsflow – Thomas Lingelbach 2. Financial report Q1 2016 – Reinhard Kandera 3. Commercialized products & EB66® – Franck Grimaud 4. R&D programs – Thomas Lingelbach 5. 2016 outlook – Thomas Lingelbach 6. Q&A Valneva Q1 2016 Analyst Presentation May 11, 2016 12

  13. Slide 13: Leading commercial product: Japanese encephalitis vaccine

    Leading commercial product: Japanese encephalitis vaccine Protecting travelers from the most common encephalitis in Asia1 Japanese Encephalitis vaccine + Designed to protect travelers, military personnel and populations in endemic regions against Japanese encephalitis (JE) + Indicated for active imm

  14. Slide 14: IXIARO/JESPECT: significant growth in Q1 2016

    Leading commercial product: Japanese encephalitis vaccine IXIARO®/JESPECT ®: significant growth in Q1 2016 Product sales revenues in € million Q1 2016 sales analysis IXIARO®/JESPECT® product sales increased to €14.6m + Compared to €9.7m (Q1 2015) Q1 ~50 FY Growth mainly driven by strong sales to the

  15. Slide 15: Commercial product: Cholera/(ETEC) vaccine

    Commercial product: Cholera/ (ETEC1) vaccine Established vaccine in the field of diarrhea DUKORAL® + For the prevention of diarrhea caused by Vibrio cholera (cholera) and/or heat-labile toxin producing enterotoxigenic Escherichia coli (ETEC)1 + In a number of countries including the EU, indicated to

  16. Slide 16: DUKORAL update

    Commercial product: Cholera/ (ETEC1) vaccine DUKORAL® update Product sales revenues in € million Q1 2016 sales analysis DUKORAL® product sales reached €5.4m Q1 + Compared to €4.5m (Q1 2015) FY + Compared to €9.8m pro-forma revenues² (Q1 2015 ) sales under previous owner Lower sales due to updated pr

  17. Slide 17: EB66 platform for efficient large scale vaccine production

    EB66® platform for efficient large scale vaccine production Potential additional milestones of up to €80m Revenue generating platform 10 new agreements signed Highlights in 2015 + Fully characterized cell-line New R&D collaboration agreement (avian embryonic stem cell Research Commercial with GSK fo

  18. Slide 18: Agenda

    Agenda 1. Introduction – Newsflow – Thomas Lingelbach 2. Financial report Q1 2016 – Reinhard Kandera 3. Commercialized products & EB66® – Franck Grimaud 4. R&D programs – Thomas Lingelbach 5. 2016 outlook – Thomas Lingelbach 6. Q&A Valneva Q1 2016 Analyst Presentation May 11, 2016 18

  19. Slide 19: Valneva's pipeline of vaccine candidates

    Valneva’s pipeline of vaccine candidates New research candidates for future clinical development Product Candidate Discovery Pre-clinical IND Phase I Phase II Phase III Partner research research enabling Pseudomonas Co-development Clinical vaccine aeruginosa with GSK candidates Clostridium difficile

  20. Slide 20: Pre-commercial product: Pseudomonas aeruginosa vaccine

    Pre-commercial product: Pseudomonas aeruginosa vaccine Data release from Phase II/III trial expected in Q2 2016 Pseudomonas aeruginosa Valneva’s vaccine candidate + Causes ~20% of all hospital-acquired infections 1,2 Only program in clinical development + Target population: patients in intensive car

  21. Slide 21: Pseudomonas aeruginosa vaccine: potential routes to marketing approval

    Pre-commercial product: Pseudomonas aeruginosa vaccine Potential routes to marketing approval 3 options for the product to reach the market Phase II/III primary endpoint met (reduction of all-cause mortality on Day 28) + Trial in support of product licensure Study does not meet primary endpoint but

  22. Slide 22: Pre-commercial product: Clostridium difficile vaccine

    Pre-commercial product: Clostridium difficile vaccine Vaccine targeting healthcare-associated diarrhea, an increasing threat to elderly Clostridium difficile (C. diff) Valneva’s vaccine candidate + Single most common pathogen of acute healthcare- + Vaccine targeting primary associated infections in

  23. Slide 23: Clostridium difficile vaccine: next steps

    Pre-commercial product: Clostridium difficile vaccine Next steps Phase II study close-out + Immune response and safety parameters monitored until Day 210, final study close-out expected mid 2016. VLA 84 – ready for Phase III + The study design was agreed with regulators in Europe and the US with the

  24. Slide 24: Pre-commercial product: Lyme borreliosis vaccine

    Pre-commercial product: Lyme borreliosis vaccine Targeting Lyme borreliosis, with market potential of above €500m4 Lyme borreliosis Valneva’s vaccine candidate + Transmitted by Ixodes ticks1, causing Lyme + Only active clinical program, no vaccine on the market + Most common vector borne illness in

  25. Slide 25: Agenda

    Agenda 1. Introduction – Newsflow – Thomas Lingelbach 2. Financial report Q1 2016 – Reinhard Kandera 3. Commercialized products & EB66® – Franck Grimaud 4. R&D programs – Thomas Lingelbach 5. 2016 outlook – Thomas Lingelbach 6. Q&A Valneva Q1 2016 Analyst Presentation May 11, 2016 25

  26. Slide 26: Event calendar and anticipated newsflow 2016

    Event calendar and anticipated newsflow 2016 + Product sales in the expected range of €70 to €80m (up to 30% growth) Commercialized + Successful implementation of own global marketing & distribution network with products IXIARO®/JESPECT® sales of ~€50m + Expected gross margin on product sales of app

  27. Slide 27: Agenda

    Agenda 1. Introduction – Newsflow – Thomas Lingelbach 2. Financial report Q1 2016 – Reinhard Kandera 3. Commercialized products & EB66® – Franck Grimaud 4. R&D programs – Thomas Lingelbach 5. 2016 outlook – Thomas Lingelbach 6. Q&A Valneva Q1 2016 Analyst Presentation May 11, 2016 27

  28. Slide 28: Thank you.

    Thank you. WaAvalneva

Valneva — Q1 2016 Earnings Presentation on 6ix