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PARIS – The United States Department of Defense (DoD) has terminated a contract to supply encephalitis vaccines with Valneva, the French drugmaker said, adding that a slowdown in global travel activity, affecting mainly Asia, had led to a drop in demand.
The development, which Valneva said had no impact on this year’s financial forecast, sent the company’s shares down about 1% in early trading.
Valneva’s Ixiaro Japanese encephalitis vaccine is indicated for active immunization for the prevention of disease in persons traveling to or living in endemic areas.
“The DoD has indicated its interest in negotiating a new supply contract in 2023 once inventory returns to standard levels,” Valneva said, adding that the total minimum value of the existing supply contract was approximately $118 million. (Reporting by Tassilo Hummel; Editing by Sudip Kar-Gupta)