Valneva Announces New $85 Million Financing Arrangement with Leading US Healthcare Funds Deerfield and OrbiMed

4 February 2020

The Company also confirms its mid-term intention to list on Nasdaq to co-fund late stage development of its Lyme disease program

  • Financing Transaction includes initial $60 million fixed rate debt and flexible terms to draw down an additional $25 million in the next 12 months
  • Valneva will use funds to further advance its leading Lyme and chikungunya development programs and to repay existing debt

Saint-Herblain (France), February 3, 2020 – Valneva SE, member of Atlanpole Biotherapies, today announced a broad debt financing transaction with funds managed by leading US-based healthcare investment firms Deerfield Management Company and OrbiMed. Both firms are providing their financing to support Valneva’s long-term strategy.

The transaction includes an initial fixed rate straight debt of $60 million (at a high, single digit interest rate) and flexible terms that allow the company to draw down an additional $25 million of capital upon similar terms in the next 12 months. Amortization payments will start in 3 years, and the loan will mature in 6 years. The intended use of proceeds is to repay the existing loan from the European Investment Bank (EIB) and allow the Company to continue to advance its leading Lyme and chikungunya development programs in the short term. Completion of the transaction is subject to the satisfaction of conditions precedent, notably the perfection of liens and pledges over the main assets of the Company and its subsidiaries.

David Lawrence, Chief Financial Officer of Valneva commented, “We are extremely pleased with this new funding from two great partners, which allows us to leverage future cash flows to advance our pipeline without diluting current shareholders. We appreciate Deerfield and OrbiMed’s renewed support in our development and business strategies. We’d also like to thank the EIB for its excellent support in the last few years”.

Valneva also confirmed its intention, subject to approval by the Company’s shareholders, to list on Nasdaq to support potential co-funding for the late stage development of its Lyme disease program. The Company completed Phase 2 patient recruitment at the end of September and now expects to report initial data (primary endpoint) mid-2020.

Guggenheim Securities served as financial advisor and Dechert LLP as legal advisor to Valneva in this transaction.

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