Stock Markets February 19, 2026

Valneva posts modest FY25 revenue gain as proprietary vaccines offset third-party decline

Company trims 2026 sales outlook amid ongoing exit from third-party distribution; Phase III Lyme readout in H1 2026 is the major near-term catalyst

By Avery Klein
Valneva posts modest FY25 revenue gain as proprietary vaccines offset third-party decline

Valneva reported FY25 revenues of €174.7 million, a slight increase from €169.6 million the prior year, driven in part by variable consideration recognized under its Lyme disease collaboration. While product sales fell 3.3% to €157.9 million because third-party distribution dropped 42% to €19.2 million, the company’s proprietary portfolio (excluding third-party products) grew 6.7% to €138.7 million (9.0% at constant exchange rates). Year-end cash declined to €109.7 million from €168.3 million, and Valneva guided 2026 revenue below consensus as the company continues to wind down third-party sales. The Phase III VALOR trial top-line readout for the Lyme vaccine is expected in H1 2026 and remains the principal near-term value driver; first Phase II data for a tetravalent Shigella candidate is anticipated in H2 2026.

Key Points

  • FY25 total revenues rose to €174.7 million, aided by variable consideration from the Lyme collaboration; proprietary product sales excluding third-party products grew 6.7% to €138.7 million (9.0% at constant exchange rates).
  • Product sales declined 3.3% to €157.9 million as third-party distribution contracted 42% to €19.2 million; Valneva guided 2026 revenues below consensus due to continued wind-down of third-party sales.
  • Phase III VALOR Lyme vaccine top-line data expected in H1 2026 is the principal near-term catalyst; a positive result would enable regulatory submissions and could lead to milestone payments and royalties from Pfizer. First Phase II Shigella data expected in H2 2026.

Valneva reported full-year 2025 results showing a small overall revenue increase but a reconfigured sales mix as third-party distribution continues to unwind. Total revenues for FY25 reached €174.7 million, up from €169.6 million in 2024, a rise that management attributes in part to recognition of variable consideration linked to its Lyme disease collaboration agreement.

Product sales declined 3.3% year-over-year to €157.9 million. That drop was driven largely by a planned 42% contraction in third-party distribution, which fell to €19.2 million. Stripping out these third-party products, Valneva’s proprietary portfolio demonstrated underlying resilience: sales rose 6.7% to €138.7 million, equivalent to a 9.0% increase at constant exchange rates.

Valneva finished the year with €109.7 million in cash on hand, down from €168.3 million at the end of 2024. Management highlighted continued discipline in cash management and noted that financial flexibility has been strengthened by a debt refinancing completed in 2025.

Looking ahead, the company provided guidance for 2026 that sits below prevailing analyst consensus. Valneva expects total revenues in the range of €155-170 million and product sales of €145-160 million. Management said the lower outlook primarily reflects the ongoing wind-down of third-party sales, while reaffirming that the company’s established commercial vaccine brands are expected to continue growing.

The most important near-term catalyst identified by the company is the Phase III VALOR study of its Lyme disease vaccine candidate. Top-line results from VALOR are anticipated in the first half of 2026. According to Valneva, a positive outcome would clear a path toward regulatory submissions and could materially affect the company’s earnings profile through milestone payments and royalties from its commercialization partner, Pfizer.

In addition to the Lyme program, Valneva expects initial Phase II data for its tetravalent Shigella vaccine candidate in the second half of 2026.


Summary

FY25 revenues rose to €174.7 million, supported by variable consideration from the Lyme collaboration. Product sales eased to €157.9 million as third-party distribution contracted sharply to €19.2 million. Excluding those third-party products, proprietary portfolio sales increased to €138.7 million. Cash at year-end was €109.7 million. The company guided 2026 revenues and product sales below consensus due to ongoing reduction of third-party distribution, and flagged the Phase III VALOR readout in H1 2026 as the primary near-term value driver. First Phase II data for the tetravalent Shigella candidate is expected in H2 2026.

Key points

  • FY25 total revenues: €174.7 million, up from €169.6 million in 2024 - impacted by variable consideration from the Lyme collaboration. (Sector impact: biotech, healthcare)
  • Product sales fell 3.3% to €157.9 million mainly due to a 42% decline in third-party distribution to €19.2 million; proprietary product sales rose 6.7% to €138.7 million (9.0% at constant exchange rates). (Sector impact: vaccines, pharmaceuticals)
  • Guidance for 2026 set below consensus - total revenues of €155-170 million and product sales of €145-160 million as third-party sales continue to be wound down; Phase III VALOR Lyme readout expected H1 2026 is the key catalyst. (Sector impact: capital markets, healthcare)

Risks and uncertainties

  • Near-term revenue risk from the deliberate reduction of third-party distribution, which is lowering reported product sales for now. (Affects companies in vaccines and broader pharmaceutical distribution)
  • Reduced year-end cash balance - cash declined to €109.7 million from €168.3 million, increasing reliance on disciplined cash management and recent debt refinancing to maintain financial flexibility. (Affects capital markets and corporate finance)
  • Clinical development risk tied to the Phase III VALOR study - the top-line readout due in H1 2026 will determine potential regulatory submission timing and the possibility of milestone and royalty revenue from Pfizer. (Affects biotech investors and commercialization prospects)

Tags: vaccines, biotech, healthcare, Valneva, clinicaltrials

Risks

  • Ongoing reduction in third-party distribution is depressing near-term product sales and 2026 revenue guidance.
  • Year-end cash fell to €109.7 million from €168.3 million, increasing reliance on tight cash management and recent refinancing to preserve liquidity.
  • Clinical trial outcomes for the Phase III VALOR study will directly influence the timing of regulatory actions and potential milestone and royalty revenues from Pfizer.

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