French biotech Valneva (NASDAQ:VALN) on Friday said it had agreed to terminate its COVID-19 vaccine drug substance manufacturing agreement with contract development organization IDT Biologika following the suspension of the manufacturing of the shot.
The European Commission in early June sharply reduced its order for doses amidst a delay in the shot’s approval.
“In light of the reduced European Commission order, Valneva has suspended manufacturing of the vaccine and, as compensation, will pay IDT up to €36.2 million in cash,” the French pharmaceutical company said in Friday’s statement.
IDT will also be paid the equivalent of €4.5 million in the form of specified equipment purchased by Valneva (VALN), the company added.
VALN has started to deliver doses of the vaccine to those European countries that did place orders.
It is also continuing talks with other governments with an aim to deploy about eight to 10M doses of its remaining inventory in the next six to 12 months.
U.S.-listed shares of Valneva (VALN) were 2.7% lower to $16.15 after hours.
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