0001387131-22-008663 | 6-K | XBRL Viewer

Commercialized products [member]

€ 92,859

€ 47,050

Technologies and services [member]

29,552

31,772

Vaccine candidates [member]

(30,830)

13,429

956

1,849

COVID [member]

93,181

Canada [member]

Canada [member] | Commercialized products [member]

6,683

2,006

6,683

2,006

United States [member]

United States [member] | Commercialized products [member]

(31,442)

29,370

United States [member] | Technologies and services [member]

4,632

23,589

(36,073)

5,781

United Kingdom [member]

United Kingdom [member] | Commercialized products [member]

95,931

United Kingdom [member] | Technologies and services [member]

5,523

901

United Kingdom [member] | COVID [member]

1,025

89,383

United Kingdom [member]

901

Austria [member]

Austria [member] | Commercialized products [member]

6,154

1,114

Austria [member] | Technologies and services [member]

3,744

1,074

Austria [member] | Technologies and services [member]

2,410

Nordics [member]

Nordics [member] | Commercialized products [member]

^[1]

2,535

Nordics [member] | Technologies and services [member]

^[1]

2,535

^[1]

Germany [member]

Germany [member] | Commercialized products [member]

2,197

7,131

Germany [member] | Technologies and services [member]

2,177

3,006

4,126

Other Europe [member]

Other Europe [member] | Commercialized products [member]

5,476

4,182

Other Europe [member] | Technologies and services [member]

4,119

1,181

1,357

3,001

Other markets [member]

Other markets [member] | Commercialized products [member]

5,325

2,330

Other markets [member] | Technologies and services [member]

139

Other markets [member] | Vaccine candidates [member]

431

466

Other markets [member] | COVID [member]

956

€ 1,849

Development of contract liabilities:

€ 3,798

[1]	Includes Denmark, Finland, Norway and Sweden

Impairment testing

6 Months Ended

Jun. 30, 2022

Impairment testing

11.

Impairment testing

11.1

Impairment testing

At the end of each reporting period Valneva assesses whether there is any indication that an asset may be impaired. Indicators for the necessity of an impairment test are, among others, actual or expected declines in sales or margins and significant changes in the economic environment with an adverse effect on Valneva’s business. An impairment loss is recognized for the amount by which the asset’s carrying amount exceeds its recoverable amount. The recoverable amount is the higher of an asset’s fair value less selling costs and value in use. For the purposes of assessing impairment, assets are grouped at the lowest levels for which there are separately identifiable cash flows (cash-generating units). The cash-generating units correspond with the specific vaccine products and vaccine candidates. Nonfinancial assets, other than goodwill, that suffered impairment are reviewed for possible reversal of the impairment at each reporting date.

As at June 30, 2022, no triggering events were identified for IXIARO and DUKORAL.

During 2021 and 2022, the Company invested in manufacturing facilities in both Scotland and Sweden in order to fulfill COVID-19 vaccine demand from contracts with the UK Government, the EC member states as well as with the Kingdom of Bahrain. Given the significant changes to the ordered volumes and the expected future demand for VLA2001, impairment tests were performed as of June 30, 2022, for all assets utilized or expected to be utilized for the manufacturing of VLA2001.

The new Almeida manufacturing facility in Scotland is still under construction and to date no manufacturing of VLA2001 has taken place in this facility. As future utilization may not be limited to VLA2001 but will likely over time be extended to manufacturing of the company’s commercial vaccine IXIARO and to manufacturing of VLA1553, the Company’s vaccine against prevention of chikungunya, all future cash flows generated by utilizing this facility have been considered in calculating the value in use.

For impairment testing of the Company’s new fixed assets held and utilized for the filling and packaging processes of COVID-19 in Sweden, the impairment testing included cash flows generated by the Company’s commercial stage vaccine DUKORAL, which will going forward also be manufactured utilizing the newly established facility in Sweden.

Additional strategic options do exist for both facilities, however, at this moment are considered unlikely. Impairment testing procedures have been performed solely on the utilization of the established capacity through the Group’s existing and future commercial stage vaccines. Different utilization options or a potential sale of any of the facilities were not considered during the performance of impairment testing procedures.

Impairment of manufacturing equipment:

As at June 30, 2022, impairment charges amounting to €3.3 million were recorded that were related to manufacturing equipment dedicated to the manufacturing of the Company’s COVID vaccine VLA2001, which after suspension of manufacturing activities following the reduction of supply volumes to the EC, became idle.

Almeida Manufacturing facility in Scotland:

The new manufacturing facility in Scotland is still under construction. By June 30, 2022, the carrying value of the related property, plant and equipment amounted to €83.7 million. The Company’s long range business model for IXIARO and VLA1553 (chikungunya), including assumptions on market size/market share, product sales and resulting profitability over a 5.5-year period as well as a Terminal Value for the period beyond 5.5 years, has been used as a basis to calculate the value in use.

Cash flows are expected to be generated starting in 2023 and considerable value in use is generated over the planning horizon of 5.5 years as well as through the Terminal Value for the period beyond the 5.5 years planning horizon. In total, the value in use far exceeded the current carrying value of €83.7 million.

The calculation uses post-tax risk-adjusted cash flow projections and a discount rate of 6.67% for IXIARO and 6.87% for chikungunya.

The discount rate of 6.67% for IXIARO was based on 1.53% risk-free rate, 6.31% market risk premium, minus 0.50% country risk premium, 0.36% currency risk, a levered beta of 1.15 and a peer group related equity-capital ratio.

The discount rate of 6.87% for chikungunya was based on 1.53% risk-free rate, 6.51% market risk premium, minus 0.45% country risk premium, 0.51% currency risk, a levered beta of 1.15 and a peer group related equity-capital ratio.

The impairment test for the manufacturing facility in Scotland has resulted in no impairment losses.

Filling & Packaging facility in Sweden:

The new Filling & Packaging facility in Sweden has been completed and was utilized for manufacturing activities for VLA2001 during the first half of 2022. Manufacturing processes are expected to continue until November 2022 and, in addition, manufacturing processes for DUKORAL are expected to be transferred to the new facility starting in 2023.

For impairment testing purposes it has been assumed that future cash flows will only be generated by DUKORAL. By June 30, 2022, the carrying value of the DUKORAL related property, plant and equipment, of utilized right-of-use assets as well as working capital amounted to €23.8 million. The Company’s long range business model for DUKORAL, including assumptions on market size/market share, product sales and resulting profitability over a 5.5-year period as well as a Terminal Value for the period beyond 5.5 years, has been used as a basis to calculate the value in use.

Cash flows are generated over the planning horizon of 5.5 years as well as through the Terminal Value for the period beyond the 5.5 years planning horizon. In total, the value in use amounted to €82.4 million and exceeded the carrying value of €23.8 million of the DUKORAL CGU. The resulting overage amounting to €58.6 million is also sufficient to cover the carrying value of the generic filling & packaging facility amounting to €29.6 million.

The calculation uses post-tax risk-adjusted cash flow projections and a discount rate of 6.69%.

The discount rate of 6.69% for DUKORAL is based on 1.53% risk-free rate, 6.31% market risk premium, minus 0.56% country risk premium, 0.42% currency risk, a levered beta of 1.15 and a peer group related equity-capital ratio.

The impairment test for the Filling & Packaging facility in Sweden has resulted in no impairment losses..

11.2

Sensitivity to changes in assumptions

The net present value calculations are most sensitive to the following assumptions:

■

discount rate

■ reduction of expected revenues/royalties.

The net present value calculation uses a discount rate of 6.67% (December 31, 2021: 7.49%) for IXIARO, 6.87% for chikungunya and 6.69% (December 31, 2021: 7.23%) for DUKORAL. The recoverable amounts of these CGUs would equal its carrying amount if the key assumptions were to change as follows: increase in the discount rate from 6.67% to 44.89% would trigger an impairment loss for IXIARO (December 31, 2021: 4,562 basis points from 7.49% to 53.11%), increase from 6.87% to 47.94% would trigger an impairment loss for chikungunya and an increase from 6.69% to 12.52% (December 31, 2021: 587 basis points from 7.23% to 13.10%) would trigger an impairment loss for DUKORAL.

The net present value calculations are based upon assumptions regarding market size, expected sales volumes resulting in sales value expectations, expected royalty income or expected milestone payments. A reduction in IXIARO, chikungunya and DUKORAL revenues of 10% would result in no impairment loss per June 30, 2022 unchanged to December 31, 2021.

Schedule of sensitivity analysis

Sensitivity analysis	June 30, 2022			December 31, 2021
	IXIARO	DUKORAL	Chikungunya	IXIARO	DUKORAL
WACC	6.67%	6.69%	6.87%	7.49%	7.23%
Break-even WACC	44.89%	12.52%	47.94%	53.11%	13.10%
Impairment if WACC increases by 1%	NO	NO	NO	NO	NO
Impairment if sales reduce by 10%	NO	NO	NO	NO	NO

Contract liabilities (Tables)

6 Months Ended

Jun. 30, 2022

	Six months ended June 30,			Year ended December 31,
€ in thousand	2022			2021
Balance as at January 1		128,758			89,636
Revenue recognition		(4,090	)		(89,364	)
Exchange rate differences		368			7
Additions		290			128,479
Other releases		(506	)		-
Closing balance		124,821			128,758
Less non-current portion		(5,110	)		(4,741	)
Current portion		119,711			124,017

Other income and expenses, net (Details Narrative) - EUR (€) € in Thousands	6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021
IfrsStatementLineItems [Line Items]
Research and development tax credit	€ 6,770	€ 9,635
Austria [member]
IfrsStatementLineItems [Line Items]
Research and development tax credit	6,200	9,100
France [member]
IfrsStatementLineItems [Line Items]
Research and development tax credit	€ 600	€ 600

Development of contract liabilities: (Details) - EUR (€) € in Thousands	6 Months Ended	12 Months Ended
	Jun. 30, 2022	Dec. 31, 2021
Balance as at January 1	€ 128,758	€ 89,636
Revenue recognition	(4,090)	(89,364)
Exchange rate differences	368	7
Additions	290	128,479
Other releases	(506)
Closing balance	124,821	128,758
Less non-current portion	(5,110)	(4,741)
Current portion	€ 119,711	€ 124,017

Finance income/(expenses) and foreign exchange gain/(losses), net (Details Narrative) - EUR (€) € in Millions	6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021
Foreign exchange loss	€ 10.7
Foreign exchange gain		€ 8.7

Refund liabilities (Details Narrative) - EUR (€)	6 Months Ended	12 Months Ended
Refund liabilities (Details Narrative) - EUR (€)	Jun. 30, 2022	Dec. 31, 2021	Dec. 31, 2020
IfrsStatementLineItems [Line Items]
Refund liabilities	€ 209,274,000	€ 254,581,000	€ 111,426,000
Refund liabilities non current	66,689,000	158,970,000
Revenue recognized	89,356,000
Pfizer Inc. [member]
IfrsStatementLineItems [Line Items]
Refund liabilities	118,400,000	79,600,000
Refund liabilities non current	59,800,000	75,200,000
CAPEX Obilgation [member]
IfrsStatementLineItems [Line Items]
Refund liabilities	81,900,000
GSK [member]
IfrsStatementLineItems [Line Items]
Refund liabilities	6,900,000	6,400,000
Refund liabilities non current	6,900,000	6,300,000
UK Authority [member]
IfrsStatementLineItems [Line Items]
Revenue recognized	€ 89,400,000
UK Supply Agreement [member]
IfrsStatementLineItems [Line Items]
Refund liabilities		166,900,000
Refund liabilities non current		€ 77,300,000

Related party transaction (Details Narrative) - EUR (€)	6 Months Ended
Related party transaction (Details Narrative) - EUR (€)	Jun. 30, 2022	Jun. 30, 2021
IfrsStatementLineItems [Line Items]
Supervisory Board aggregate compensation	€ 162,000	€ 140,000
Research and Development Tax Credit	2,400,000
Vital Meat SAS [member]
IfrsStatementLineItems [Line Items]
Operating Activities	1,100,000
Consideration for Sale of Assets	€ 1,000,000.0

Schedule of finance income/(expenses) and foreign exchange gain/(losses), net (Details) - EUR (€) € in Thousands	6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021
Finance income
Interest income from other parties	€ 35	€ 228
Total finance income	35	228
Finance expense
Interest expense on loans	(2,695)	(3,820)
Interest expense on refund liabilities	(4,812)	(4,104)
Interest expense on lease liabilities	(457)	(419)
Other interest expense	(235)	(88)
Total finance expense	(8,199)	(8,431)
Foreign exchange gain/(losses), net	(10,657)	8,735
Finance income/(expense), net	€ (18,821)	€ 532

Borrowings

6 Months Ended

Jun. 30, 2022

Other assets include the following:

18.

Borrowings

The loan is secured by substantially all of Valneva’s assets, including its intellectual property, and is guaranteed by Valneva SE and certain of its subsidiaries.

While the revenue covenant remained unchanged, the minimum cash requirement reduced from €50.0 million to €35.0 million upon execution of the amendment in April 2022.

The Group does not expect these limitations to affect its ability to meet its cash obligations. As at June 30, 2022, the Group’s consolidated liquidity or net revenues did not fall below the covenant minimum values.

As of June 30, 2022, other loans included in borrowings related to financing of Research and Development expenses and CIR (R&D tax credit in France) of €2.4 million (December 31, 2021: €4.7 million) which are guaranteed by governmental parties and the CEPI loan in the amount of €4.7 million (December 31, 2021: €3.5 million), which relates to advanced payments received which are expected to be paid back in the future.

Leases (right of use assets and lease liabilities) (Details Narrative) - EUR (€)	6 Months Ended
	Jun. 30, 2022	Dec. 31, 2021
IfrsStatementLineItems [Line Items]
Right of use assets	€ 46,800,000	€ 48,300,000
Amortisation expense	1,500,000
Exchange rate differences	900,000
Revaluation of lease liabilities	800,000
Lease liability	54,900,000	56,800,000
Lease payment	2,000,000.0
Exchange rate differences, lease liability	1,300,000
Interest expenses	500,000
Additions	100,000
Austria [member]
IfrsStatementLineItems [Line Items]
Land and buildings	23,500,000	24,000,000.0
Sweden [member]
IfrsStatementLineItems [Line Items]
Land and buildings	€ 21,100,000	€ 22,100,000

Contractual obligations

6 Months Ended

Jun. 30, 2022

Contractual obligations

23.

Contractual obligations

The following tables disclose aggregate information about the Group’s material long-term contractual obligations and the periods in which payments are due. Future events could cause actual payments and timing of payments to differ from the contractual cash flows set forth below.

At December 31, 2021 € in thousand	<1 year		1-2 years		2-3 years		3-5 years		5- 10 years		10-15 years		>15 years		Total
Borrowings		7,121		27,061		21,499		20,534		1,765		—		—		77,980
Lease liabilities		4,060		26,142		2,870		5,761		12,798		9,928		1,905		63,464
Refund liabilities		101,070		82,654		49,701		55,000		12,720		—		—		301,145
Trade payables and accruals		68,119		—		—		—		—		—		—		68,119
Tax and employee-related liabilities⁵		10,101		—		—		—		—		—		—		10,101
Other liabilities		27		25		—		—		—		—		—		52
		190,499		135,882		74,070		81,295		27,282		9,928		1,905		520,861

At June 30, 2022 € in thousand		<1 year		1-2 years		2-3 years		3-5 years		5- 10 years		10-15 years		>15 years		Total
Borrowings		9,723		17,764		31,426		50,726		1,902		—		—		111,540
Lease liabilities		3,873		25,605		2,839		5,672		12,129		9,918		1,029		61,065
Refund liabilities		142,585		59,784		7,000		—		—		—		—		209,369
Trade payables and accruals		83,704		—		—		—		—		—		—		83,704
Tax and employee-related liabilities³		9,555		—		—		—		—		—		—		9,555
Other liabilities		24		25		—		—		—		—		—		49
		249,464		103,179		41,265		56,398		14,031		9,918		1,029		475,283

⁵

Social security and other tax payables are excluded from the tax and employee-related liabilities balance, as this analysis is required only for financial instruments.

Impairment testing (Details Narrative) - EUR (€)	6 Months Ended
Impairment testing (Details Narrative) - EUR (€)	Jun. 30, 2022	Dec. 31, 2021
IfrsStatementLineItems [Line Items]
Impairment	€ 3,300,000
Manufacturing facility	83,700,000
Property, plant and equipment	€ 123,240,000	€ 125,545,000
IXIARO [member]
IfrsStatementLineItems [Line Items]
Discount rates	6.67%	7.49%
Discount rates increase for impairment loss		45.62%
Chikungunya [member]
IfrsStatementLineItems [Line Items]
Discount rates	6.87%
DUKORAL [member]
IfrsStatementLineItems [Line Items]
Discount rates	6.69%	7.23%
Discount rates increase for impairment loss		5.87%
IXIARO Impairment Loss [member]
IfrsStatementLineItems [Line Items]
Discount rates	44.89%	53.11%
Chikungunya Impairment Loss [member]
IfrsStatementLineItems [Line Items]
Discount rates	47.94%
DUKORAL Impairment Loss [member]
IfrsStatementLineItems [Line Items]
Discount rates	12.52%	13.10%
IXIARO [member]
IfrsStatementLineItems [Line Items]
Discount Rate	6.67%
Risk Free Rate	1.53%
Market Risk Premium	6.31%
Country Risk Premium	0.50%
Currency Risk	0.36%
Leveraged Beta	1.15
Chikungunya [member]
IfrsStatementLineItems [Line Items]
Discount Rate	6.87%
Risk Free Rate	1.53%
Market Risk Premium	6.51%
Country Risk Premium	0.45%
Currency Risk	0.51%
Leveraged Beta	1.15
DUKORAL [member]
IfrsStatementLineItems [Line Items]
Discount Rate	6.69%
Risk Free Rate	1.53%
Market Risk Premium	6.31%
Country Risk Premium	0.56%
Currency Risk	0.42%
Leveraged Beta	1.15
Property, plant and equipment	€ 23,800,000
Property Plant and Equipment Value in Use	82,400,000
Property Plant and Equipment Headroom	58,600,000
Filling and Packaging Facility [member]
IfrsStatementLineItems [Line Items]
Property, plant and equipment	€ 29,600,000

Contract liabilities (Details Narrative) - EUR (€) € in Thousands	6 Months Ended		12 Months Ended
	Jun. 30, 2022	Jun. 30, 2021	Dec. 31, 2021	Dec. 31, 2020
IfrsStatementLineItems [Line Items]
Contract liabilities	€ 124,821		€ 128,758	€ 89,636
Revenue recognized	4,090		€ 89,364
APA with EC [member]
IfrsStatementLineItems [Line Items]
Contract liabilities	116,900
Kingdom of Bahrain [member]
IfrsStatementLineItems [Line Items]
Revenue recognized	1,500
Pfizer Inc. [member]
IfrsStatementLineItems [Line Items]
Revenue recognized	€ 1,200
UK Supply Agreement [member]
IfrsStatementLineItems [Line Items]
Revenue recognized		€ 87,000

Equity (Details Narrative) € in Millions	6 Months Ended	12 Months Ended
Equity (Details Narrative) € in Millions	Jun. 30, 2022 shares Number	Dec. 31, 2021 EUR (€)
IfrsStatementLineItems [Line Items]
Number of ordinary shares issued	1,176,391
Number of convertible preferred share converted into ordinary shares	772,070
Conditional capital shares	3,900,994
Maximum Capital Increase \| €		€ 5,175
Management [Member]
IfrsStatementLineItems [Line Items]
Number of free ordinary shares	636,648
ESOP [member]
IfrsStatementLineItems [Line Items]
Number of share options exercised in share-based payment arrangement	1,114,963
ESOP 2013 [member]
IfrsStatementLineItems [Line Items]
Number of share options exercised in share-based payment arrangement \| Number	615,918
ESOP 2015 [member]
IfrsStatementLineItems [Line Items]
Number of share options exercised in share-based payment arrangement \| Number	478,845
ESOP 2016 [member]
IfrsStatementLineItems [Line Items]
Number of share options exercised in share-based payment arrangement \| Number	20,200
FCPS [member]
IfrsStatementLineItems [Line Items]
Number of share options exercised in share-based payment arrangement \| Number	28,348

Financial Instruments (Details Narrative) € in Millions	Jun. 30, 2022 EUR (€)
Interest rate on Loans	9.87%
Fair value of loans	€ 2.7
Carrying amount of loans	€ 3.0

Other assets (Tables)

6 Months Ended

Jun. 30, 2022

	June 30,			December 31,
€ in thousand	2022			2021
R&D tax credit receivables		40,031			35,390
Tax receivables		8,002			6,145
Prepaid expenses		5,359			5,131
Contract costs		3,010			3,010
Advance payments		2,035			27,375
Consumables and supplies on stock		1,414			1,722
Miscellaneous current assets		570			23
Other non-financial assets		60,422			78,796

Deposits		11,341			11,339
Miscellaneous financial assets		151			183
Other financial assets		11,491			11,522
Other assets		71,913			90,318
Less non-current portion		(17,948	)		(19,282	)
Current portion		53,965			71,036

Group structure

6 Months Ended

Jun. 30, 2022

Group Structure

Group structure

Group structure

List of direct or indirect interests held by the Company:

Name	Country of incorporation	Consolidation method	June 30, 2022	December 31, 2021
BliNK Biomedical SAS	FR	Equity method*	48.9%	48.9%
Vaccines Holdings Sweden AB	SE	Consolidation	100%	100%
Valneva Austria GmbH	AT	Consolidation	100%	100%
Valneva Canada Inc.	CA	Consolidation	100%	100%
Valneva France SAS	FR	Consolidation	100%	100%
Valneva Scotland Ltd.	UK	Consolidation	100%	100%
Valneva Sweden AB	SE	Consolidation	100%	100%
Valneva UK Ltd.	UK	Consolidation	100%	100%
Valneva USA, Inc.	US	Consolidation	100%	100%

* The investment in BliNK Biomedical SAS was reclassified from “Investments in associates” to “Assets classified as held for sale” as at June 30, 2022.

Schedule of key management compensation (Details) - EUR (€) € in Thousands	6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021
Salaries and other short-term employee benefits	€ 886	€ 677
Other long-term benefits	18	15
Share-based payments (expense of the period)	288	448
Key management compensation	€ 1,192	€ 1,140

Contract liabilities

6 Months Ended

Jun. 30, 2022

Contract liabilities

19.

Contract liabilities

Development of contract liabilities:

	Six months ended June 30,			Year ended December 31,
€ in thousand	2022			2021
Balance as at January 1		128,758			89,636
Revenue recognition		(4,090	)		(89,364	)
Exchange rate differences		368			7
Additions		290			128,479
Other releases		(506	)		-
Closing balance		124,821			128,758
Less non-current portion		(5,110	)		(4,741	)
Current portion		119,711			124,017

As at June 30, 2022 and as at December 31, 2021, contract liabilities consisted mainly of advance payments received and related to the supply of VLA2001 and other commercial products. As at June 30, 2022 and as at December 31, 2021, €116.9 million were related to the APA with the EC (for more details refer to note 1).

In the six month ended June 30, 2022, with regards to revenue recognized in 2022, €1.5 million related to the supply agreement with the Kingdom of Bahrain, and €1.2 million to Pfizer.

In 2021, €87.0 million of the revenue recognized related to the UK Supply Agreement; see Note 1.

Cash Flow information

6 Months Ended

Jun. 30, 2022

Cash Flow Information

Cash Flow information

24.

Cash Flow information

The following table shows the adjustments to reconcile net loss to net cash generated from operations:


€ in thousand	Six months ended June 30,
	2022			2021
Profit/(Loss) for the year		(171,493	)		(86,399	)
Adjustments for non-cash transactions:
■ Depreciation and amortization		11,153			6,101
■ Write-off / impairment fixed assets/intangibles		3,286			—
■ Share-based compensation expense/(income)		(8,921	)		3,484
■ Income tax expense/(income)		2,271			668
■ (Profit)/loss from disposal of property, plant, equipment and intangible assets		46			23
■ Share of (profit)/loss from associates		(9	)		90
■ Provision for employer contribution costs on share-based compensation plans		(19,290	)		4,596
■ Other non-cash income/expense		8,972			(6,163	)
■ Interest income		(35	)		(228	)
■ Interest expense		8,199			8,431
Changes in non-current operating assets and liabilities (excluding the effects of acquisition and exchange rate differences on consolidation):
■ Other non-current assets		1,335			1,413
■ Long term contract liabilities		—			(58	)
■ Long term refund liabilities		(94,780	)		6,988
■ Other non-current liabilities and provisions		601			(2	)
Changes in working capital (excluding the effects of acquisition and exchange rate differences on consolidation):
■ Inventory		26,041			(97,006	)
■ Trade and other receivables		44,960			(13,271	)
■ Contract liabilities		(4,304	)		248,910
■ Refund liabilities		44,654			(11,157	)
■ Trade, other payables and provisions		47,904			19,139
Cash generated from/(used in) operations		(99,410	)		85,560

Group structure (Tables)

6 Months Ended

Jun. 30, 2022

Group Structure

List of direct or indirect interests held by the Company:

Name	Country of incorporation	Consolidation method	June 30, 2022	December 31, 2021
BliNK Biomedical SAS	FR	Equity method*	48.9%	48.9%
Vaccines Holdings Sweden AB	SE	Consolidation	100%	100%
Valneva Austria GmbH	AT	Consolidation	100%	100%
Valneva Canada Inc.	CA	Consolidation	100%	100%
Valneva France SAS	FR	Consolidation	100%	100%
Valneva Scotland Ltd.	UK	Consolidation	100%	100%
Valneva Sweden AB	SE	Consolidation	100%	100%
Valneva UK Ltd.	UK	Consolidation	100%	100%
Valneva USA, Inc.	US	Consolidation	100%	100%

* The investment in BliNK Biomedical SAS was reclassified from “Investments in associates” to “Assets classified as held for sale” as at June 30, 2022.

Operating expenses (Tables)

6 Months Ended

Jun. 30, 2022

Schedule of operating expenses

The unaudited consolidated income statement line items cost of goods and services, research and development expenses, marketing and distribution expenses as well as general and administrative expenses include the following items by nature of cost:

Schedule of operating expenses


	Six months ended June 30,
€ in thousand	2022			2021
Cost of services and change in inventory		(102,476	)		(2,940	)
Consulting and other purchased services²		(87,171	)		(76,213	)
Employee benefit expense other than share-based compensation³		(23,089	)		(35,955	)
Share-based compensation expense		5,480			(3,653	)
Depreciation and amortization and impairment		(14,440	)		(6,101	)
Building and energy costs		(7,050	)		(5,286	)
Supply, office and IT-costs		(6,134	)		(3,308	)
Raw materials and consumables used		(5,536	)		(5,371	)
Advertising costs		(2,740	)		(1,318	)
License fees and royalties		(1,650	)		(2,490	)
Travel and transportation costs		(849	)		(126	)
Warehousing and distribution costs		(686	)		(745	)
Other expenses		(889	)		(554	)
Operating expenses		(247,230	)		(144,062	)

In the six months ended June 30, 2022, the position “employee benefit other than share-bases compensations” includes an income of €19.5 million, which resulted from release of the employer contribution provision which was accounted for as of December 31, 2021 for the payable at the exercise of the IFRS 2 programs (for the six months ended June 30, 2021: expense €5.0 million). This provision was calculated using the share price of Valneva as of the balance sheet date.

Refund liabilities

6 Months Ended

Jun. 30, 2022

Refund Liabilities

Write-down provisions related to the inventory categories as follows:

20.

Refund liabilities

Development of refund liabilities:

	Six months ended June 30,			Year ended December 31,
€ in thousand	2022			2021
Balance as at January 1		254,581			111,426
Revenue Recognition		(89,356	)		—
Additions		48,751			159,179
Payments		(12,771	)		(18,022	)
Other releases		-			(15,198	)
Interest expense capitalized		4,812			8,478
Exchange rate difference		3 255			8,718
Closing balance		209,274			254,581
Less non-current portion		(66,689	)		(158,970	)
Current portion		142,585			95,611

As at June 30, 2022, €118.4 million related to the collaboration with Pfizer (refer to Note 4), of which €59.8 million non-current; €81.9 million (of which nil non-current) related to the CAPEX obligation, and €6.9 million related to an expected payment to GSK (thereof €6.9 million non-current) with regards to the termination of an agreement in 2019.

In the six months ended June 30, 2022, other revenue recognized in the amount of €89.4 million resulted from and new contractual terms of the royalty obligation and the reassessment of the likelihood towards the UK Authority following the settlement agreement.

As at December 31, 2021, €79.6 million (thereof €75.2 million non-current) related to the collaboration with Pfizer, €166.9 million (thereof €77.3 million non-current) related to the UK Supply Agreement, €6.4 million (thereof €6.3 million non-current) related to the expected payment to GSK related to the termination of an agreement in 2019. Other releases related to reductions in refund liabilities which have been reclassified in contract liabilities.

Ordinary shares and the convertible preferred shares are classified as equity. (Details) - € / shares	Jun. 30, 2022	Dec. 31, 2021
Ordinary shares issued (€0.15 par value per share)	117,331,343	105,190,223
Par value per share	€ 0.15	€ 0.15
Convertible preferred shares registered	20,514	48,862
Total shares issued	117,351,857	105,239,085
Less Treasury shares	(124,322)	(124,322)
Outstanding shares	117,227,535	105,114,763

Schedule of sensitivity analysis (Details)	6 Months Ended
Schedule of sensitivity analysis (Details)	Jun. 30, 2022	Jun. 30, 2021
IXIARO [member]
IfrsStatementLineItems [Line Items]
Weighted average cost of capital	6.67%	7.49%
Break-even weighted average cost of capital	44.89%	53.11%
DUKORAL [member]
IfrsStatementLineItems [Line Items]
Weighted average cost of capital	6.69%	7.23%
Break-even weighted average cost of capital	12.52%	13.10%
Chikungunya [member]
IfrsStatementLineItems [Line Items]
Weighted average cost of capital	6.87%
Break-even weighted average cost of capital	47.94%

The following table shows the adjustments to reconcile net loss to net cash generated from operations: (Details) - EUR (€) € in Thousands	6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021
IfrsStatementLineItems [Line Items]
Profit/(Loss) for the year	€ (171,493)	€ (86,399)
Adjustments for non-cash transactions:
■ Share-based compensation expense/(income)	369	1,217
■ Income tax expense/(income)	2,271	668
Changes in working capital (excluding the effects of acquisition and exchange rate differences on consolidation):
Cash generated from/(used in) operations	(100,228)	84,247
Individual assets or cash-generating units [member]
IfrsStatementLineItems [Line Items]
Profit/(Loss) for the year	(171,493)	(86,399)
Adjustments for non-cash transactions:
■ Depreciation and amortization	11,153	6,101
■ Write-off / impairment fixed assets/intangibles	3,286
■ Share-based compensation expense/(income)	(8,921)	3,484
■ Income tax expense/(income)	2,271	668
■ (Profit)/loss from disposal of property, plant, equipment and intangible assets	46	23
■ Share of (profit)/loss from associates	(9)	90
■ Provision for employer contribution costs on share-based compensation plans	(19,290)	4,596
■ Other non-cash income/expense	8,972	(6,163)
■ Interest income	(35)	(228)
■ Interest expense	8,199	8,431
Changes in non-current operating assets and liabilities (excluding the effects of acquisition and exchange rate differences on consolidation):
■ Other non-current assets	1,335	1,413
■ Long term contract liabilities		(58)
■ Long term refund liabilities	(94,780)	6,988
■ Other non-current liabilities and provisions	601	(2)
Changes in working capital (excluding the effects of acquisition and exchange rate differences on consolidation):
■ Inventory	26,041	(97,006)
■ Trade and other receivables	44,960	(13,271)
■ Contract liabilities	(4,304)	248,910
■ Refund liabilities	44,654	(11,157)
■ Trade, other payables and provisions	47,904	19,139
Cash generated from/(used in) operations	€ (99,410)	€ 85,560

Equity

6 Months Ended

Jun. 30, 2022

Equity

17.

Equity

17.1

Share capital and Share premium

Ordinary shares and the convertible preferred shares are classified as equity.


Number of shares	June 30,			December 31,
	2022			2021
Ordinary shares issued (€0.15 par value per share)		117,331,343			105,190,223
Convertible preferred shares registered		20,514			48,862
Total shares issued		117,351,857			105,239,085
Less Treasury shares		(124,322	)		(124,322	)
Outstanding shares		117,227,535			105,114,763

In June 2022, Valneva and Pfizer entered into an Equity Subscription Agreement. For more details refer to Note 1.

Furthermore, 1,114,963 employee stock options (of which 615,918 were granted from ESOP 2013, 478,845 from ESOP 2015 and 20,200 from ESOP 2016) were exercised in the exercise period opened in January 2022, which resulted in an increase of 1,176,391 ordinary shares. On the other hand, 28,348 preferred shares for the Group’s Executive Managers from the FCPS (“Free convertible preferred share”) plan 2017-2021 were converted into 772,070 Company’s ordinary shares. 636,648 free ordinary shares for the benefit of Management Board and Management Committee members from the free share plan 2019-2023 were fully vested and transferred to their beneficiaries on March 25, 2022.

Conditional and authorized capital

As at June 30, 2022, the Company had 3,900,994 shares of conditional capital in connection with :

the possible exercise of existing stock options;

+ the possible exercise of existing equity warrants (BSAs);

+ the possible final grant of existing Free Ordinary Shares.

Pursuant to resolution No. 28 of the Combined General Meeting held on June 23, 2022, the maximum aggregate amount of capital increases that may be carried out, with immediate effect or in the future, under resolutions 20 to 27 of said Meeting, may not exceed €5,175 million, it being specified that to this maximum aggregate amount will be added the additional nominal amount of shares or securities to be issued in accordance with applicable legal or regulatory provisions and, if applicable, with contractual provisions providing for other forms of adjustment, in order to preserve the rights of the holders of securities or other rights giving immediate and/or future access to the capital of the Company.

17.2

Other reserves

€ in thousand	Other regulated reserves⁴		Other comprehensive income			Treasury shares			Capital from Share-based compensation		Other revenue reserves			Total
Balance as at January 1, 2021		52,820		(2,474	)		(898	)		12,368		(9,474	)		52,342
Currency translation differences		—		(424	)		—			—		—			(424	)
Share-based compensation expense:
- value of services		—		—			—			1,217					1,217
Purchase/sale of treasury shares		—		—			209			—		—			209
Balance as at June 30, 2021		52,820		(2,898	)		(689	)		13,585		(9,474	)		53,344

	³
Balance as at January 1, 2022	52,820	(5,146	)	(645	)	15,000	(9,517	)	52,512
Currency translation differences	—	(567	)	—		—	—		(567	)
Defined benefit plan actuarial gains	—	168		—		—	—		168
Share-based compensation expense:
- value of services	—	—		—		369	—		369
Purchase/sale of treasury shares	—	—		—		—	—		—
Balance as at June 30, 2022	52,820	(5,545	)	(645	)	15,369	(9,517	)	52,482

⁴

Regulated non-distributable reserve relating to the merger with Intercell AG

Inventories (Tables)

6 Months Ended

Jun. 30, 2022

Schedule of Inventories

Inventories include the following:

Schedule of Inventories

	June 30,			December 31,
€ in thousand	2022			2021
Raw materials		99,195			102,082
Work in progress		116,188			55,681
Finished goods		14,636			8,135
Purchased goods (third party products)		3,638			7,362
Gross amount of Inventory before write-down		233,657			173,260
Less: write-down		(138,455	)		(49,162	)
Inventory		95,201			124,098

	June 30,		December 31,
€ in thousand	2022		2021
Raw materials		71,325		29,751
Work in progress		62,452		15,096
Finished goods		4,317		3,974
Purchased goods (third party products)		361		342
Total write-down provision		138,455		49,162

Events after the reporting period (Details Narrative)	1 Months Ended
Events after the reporting period (Details Narrative)	Jul. 31, 2022 Number
COVID VLA2001 [member] \| Member States [member] \| Entering into significant commitments or contingent liabilities [member]
IfrsStatementLineItems [Line Items]
Number of doses	1,250,000

Finance income/(expenses) and foreign exchange gain/(losses), net (Tables)

6 Months Ended

Jun. 30, 2022

Schedule of finance income/(expenses) and foreign exchange gain/(losses), net


	Six months ended June 30,
€ in thousand	2022			2021
Finance income
Interest income from other parties		35			228
Total finance income		35			228

Finance expense
Interest expense on loans		(2,695	)		(3,820	)
Interest expense on refund liabilities		(4,812	)		(4,104	)
Interest expense on lease liabilities		(457	)		(419	)
Other interest expense		(235	)		(88	)
Total finance expense		(8,199	)		(8,431	)

Foreign exchange gain/(losses), net		(10,657	)		8,735

Finance income/(expense), net		(18,821	)		532

Provisions (Tables)

6 Months Ended

Jun. 30, 2022

Provisions for employee commitments

21.1

Provisions for employee commitments


€ in thousand	June 30, 2022			December 31, 2021
Employer contribution costs on share-based compensation plans		7,050			26,520
Phantom shares		4,977			14,267
Retirement termination benefits		297			422
Balance at June 30		12,324			41,210
Less non-current portion		(2,302	)		(8,308	)
Current portion		10,022			32,901

Other provisions

21.2

Other provisions

	Six months ended June 30,			Year ended December 31,
€ in thousand	2022			2021
Balance as at January 1		15,806			2,124
Additions		31,305			13,682
Usage		(250	)		—
Closing balance		46,862			15,806
Less non-current portion		—			—
Current portion		46,862			15,806

Events after the reporting period

6 Months Ended

Jun. 30, 2022

Events after the reporting period

27.

Events after the reporting period

Following the receipt of the EC’s notice to terminate the APA for VLA2001 in May 2022, both parties entered into negotiations for a remediation plan. In July 2022, the EC approved an amendment to the APA, which was signed in July 2022. Under this amendment the Member States will purchase 1.25 million doses of VLA2001 in 2022, with the option to purchase an equivalent quantity later this year for delivery in 2022.

These conditions arose after the reporting period that ended on June 30, 2022 and there was no evidence of conditions that already existed at the end of this reporting period.

Provisions (Details Narrative) - EUR (€) € / shares in Units, € in Thousands	Jun. 30, 2022	Dec. 31, 2021	Dec. 31, 2020
IfrsStatementLineItems [Line Items]
Share price	€ 10.86	€ 24.50
Provision related to expected legal and settlement costs	€ 27,800
Other provisions	46,862	€ 15,806	€ 2,124
Legal proceedings provision [member]
IfrsStatementLineItems [Line Items]
Other provisions	€ 3,100

Equity (Tables)

6 Months Ended

Jun. 30, 2022

Ordinary shares and the convertible preferred shares are classified as equity.


Number of shares	June 30,			December 31,
	2022			2021
Ordinary shares issued (€0.15 par value per share)		117,331,343			105,190,223
Convertible preferred shares registered		20,514			48,862
Total shares issued		117,351,857			105,239,085
Less Treasury shares		(124,322	)		(124,322	)
Outstanding shares		117,227,535			105,114,763

Schedule of other reserves

€ in thousand	Other regulated reserves⁴		Other comprehensive income			Treasury shares			Capital from Share-based compensation		Other revenue reserves			Total
Balance as at January 1, 2021		52,820		(2,474	)		(898	)		12,368		(9,474	)		52,342
Currency translation differences		—		(424	)		—			—		—			(424	)
Share-based compensation expense:
- value of services		—		—			—			1,217					1,217
Purchase/sale of treasury shares		—		—			209			—		—			209
Balance as at June 30, 2021		52,820		(2,898	)		(689	)		13,585		(9,474	)		53,344

	³
Balance as at January 1, 2022	52,820	(5,146	)	(645	)	15,000	(9,517	)	52,512
Currency translation differences	—	(567	)	—		—	—		(567	)
Defined benefit plan actuarial gains	—	168		—		—	—		168
Share-based compensation expense:
- value of services	—	—		—		369	—		369
Purchase/sale of treasury shares	—	—		—		—	—		—
Balance as at June 30, 2022	52,820	(5,545	)	(645	)	15,369	(9,517	)	52,482

⁴

Regulated non-distributable reserve relating to the merger with Intercell AG

Development of refund liabilities: (Details) - EUR (€) € in Thousands	6 Months Ended	12 Months Ended
	Jun. 30, 2022	Dec. 31, 2021
Refund Liabilities
Balance as at January 1	€ 254,581	€ 111,426
Revenue Recognition	(89,356)
Additions	48,751	159,179
Payments	(12,771)	(18,022)
Other releases		(15,198)
Interest expense capitalized	4,812	8,478
Exchange rate difference	3	8,718
Closing balance	209,274	254,581
Less non-current portion	(66,689)	(158,970)
Current portion	€ 142,585	€ 95,611

Jun. 30, 2022

Dec. 31, 2021

€ 111,540

€ 77,980

61,065

63,464

209,369

301,145

83,704

68,119

9,555

10,101

^[1]

Not later than one year [member]

475,283

520,861

9,723

7,121

3,873

4,060

142,585

101,070

83,704

68,119

9,555

10,101

^[1]

Later than one year and not later than two years [member]

249,464

190,499

17,764

27,061

25,605

26,142

59,784

82,654

^[1]

Later than two years and not later than three years [member]

103,179

135,882

31,426

21,499

2,839

2,870

7,000

49,701

^[1]

Later than three years and not later than five years [member]

41,265

74,070

50,726

20,534

5,672

5,761

55,000

^[1]

Later than five years and not later than ten years [member]

56,398

81,295

1,902

1,765

12,129

12,798

12,720

^[1]

Later than ten years and not later than fifteen years [member]

14,031

27,282

9,918

9,928

^[1]

Later than fifteen years and not later than twenty years [member]

9,918

9,928

1,029

1,905

^[1]

Schedule of key management compensation

€ 1,029

€ 1,905

[1]	Social security and other tax payables are excluded from the tax and employee-related liabilities balance, as this analysis is required only for financial instruments.

Segment reporting (Details Narrative) - EUR (€) € in Thousands	6 Months Ended		24 Months Ended
	Jun. 30, 2022	Jun. 30, 2021	Dec. 31, 2021
IfrsStatementLineItems [Line Items]
Revenue	€ 93,224	€ 47,502
Technologies and services [member]
IfrsStatementLineItems [Line Items]
Revenue	(30,465)	13,880
Vaccine candidates [member]
IfrsStatementLineItems [Line Items]
Revenue	956	€ 1,849
United States [member] \| Technologies and services [member]
IfrsStatementLineItems [Line Items]
Negative Revenue	€ 36,100
United States [member] \| Vaccine candidates [member] \| Pfizer Inc. [member]
IfrsStatementLineItems [Line Items]
Revenue			€ 31,600

- Definition

The income arising in the course of an entity's ordinary activities. Income is increases in assets, or decreases in liabilities, that result in increases in equity, other than those relating to contributions from holders of equity claims.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Name IFRS
-Number 8
-IssueDate 2021-01-01
-Paragraph 28
-Subparagraph a
-URI http://eifrs.ifrs.org/eifrs/xifrs-link?type=IFRS&num=8&code=ifrs-tx-2021-en-r&anchor=para_28_a&doctype=Standard
-URIDate 2021-03-24

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Name IFRS
-Number 8
-IssueDate 2021-01-01
-Paragraph 23
-Subparagraph a
-URI http://eifrs.ifrs.org/eifrs/xifrs-link?type=IFRS&num=8&code=ifrs-tx-2021-en-r&anchor=para_23_a&doctype=Standard
-URIDate 2021-03-24

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Name IFRS
-Number 8
-IssueDate 2021-01-01
-Paragraph 32
-URI http://eifrs.ifrs.org/eifrs/xifrs-link?type=IFRS&num=8&code=ifrs-tx-2021-en-r&anchor=para_32&doctype=Standard
-URIDate 2021-03-24

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
-Name IFRS
-Number 8
-IssueDate 2021-01-01
-Paragraph 33
-Subparagraph a
-URI http://eifrs.ifrs.org/eifrs/xifrs-link?type=IFRS&num=8&code=ifrs-tx-2021-en-r&anchor=para_33_a&doctype=Standard
-URIDate 2021-03-24

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Name IFRS
-Number 8
-IssueDate 2021-01-01
-Paragraph 34
-URI http://eifrs.ifrs.org/eifrs/xifrs-link?type=IFRS&num=8&code=ifrs-tx-2021-en-r&anchor=para_34&doctype=Standard
-URIDate 2021-03-24

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Name IAS
-Number 1
-IssueDate 2021-01-01
-Paragraph 82
-Subparagraph a
-URI http://eifrs.ifrs.org/eifrs/xifrs-link?type=IAS&num=1&code=ifrs-tx-2021-en-r&anchor=para_82_a&doctype=Standard
-URIDate 2021-03-24

Reference 7: http://www.xbrl.org/2003/role/exampleRef
-Name IAS
-Number 1
-IssueDate 2021-01-01
-Paragraph 103
-URI http://eifrs.ifrs.org/eifrs/xifrs-link?type=IAS&num=1&code=ifrs-tx-2021-en-r&anchor=para_103&doctype=Standard
-URIDate 2021-03-24

Reference 8: http://www.xbrl.org/2003/role/exampleRef
-Name IAS
-Number 1
-IssueDate 2021-01-01
-Paragraph 102
-URI http://eifrs.ifrs.org/eifrs/xifrs-link?type=IAS&num=1&code=ifrs-tx-2021-en-r&anchor=para_102&doctype=Standard
-URIDate 2021-03-24

Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Name IFRS
-Number 5
-IssueDate 2021-01-01
-Paragraph 33
-Subparagraph b
-Clause i
-URI http://eifrs.ifrs.org/eifrs/xifrs-link?type=IFRS&num=5&code=ifrs-tx-2021-en-r&anchor=para_33_b_i&doctype=Standard
-URIDate 2021-03-24

Reference 10: http://www.xbrl.org/2003/role/disclosureRef
-Name IFRS
-Number 12
-IssueDate 2021-01-01
-Paragraph B12
-Subparagraph b
-Clause v
-URI http://eifrs.ifrs.org/eifrs/xifrs-link?type=IFRS&num=12&code=ifrs-tx-2021-en-r&anchor=para_B12_b_v&doctype=Appendix&subtype=B
-URIDate 2021-03-24

Reference 11: http://www.xbrl.org/2003/role/exampleRef
-Name IFRS
-Number 12
-IssueDate 2021-01-01
-Paragraph B10
-Subparagraph b
-URI http://eifrs.ifrs.org/eifrs/xifrs-link?type=IFRS&num=12&code=ifrs-tx-2021-en-r&anchor=para_B10_b&doctype=Appendix&subtype=B
-URIDate 2021-03-24

+ Details

Cash and cash equivalents (Details Narrative) - EUR (€) € in Thousands	Jun. 30, 2022	Dec. 31, 2021
Restricted cash with Certificate of Deposit	€ 50	€ 50
Minimum liquidity requirement	€ 35,000	€ 50,000

Trade receivables include the following: (Details) - EUR (€) € in Thousands	Jun. 30, 2022	Dec. 31, 2021
Trade Receivables
Trade receivables	€ 16,253	€ 44,030
Less: loss allowance of receivables	(2)	(17)
Trade receivables, net	€ 16,251	€ 44,013

Unaudited Interim Condensed Consolidated Statements of Changes in Equity € in Thousands	Issued capital [member] EUR (€) shares	Share premium [member] EUR (€)	Other reserves [member] EUR (€)	Retained earnings, excluding profit (loss) for reporting period [member] EUR (€)	Retained earnings, profit (loss) for reporting period [member] EUR (€)	EUR (€) shares
Balance at Dec. 31, 2020	€ 13,646	€ 244,984	€ 52,342	€ (169,156)	€ (64,393)	€ 77,422
Beginning balance (in shares) at Dec. 31, 2020 \| shares	90,970,562
Total comprehensive loss			(424)		(86,399)	(86,823)
Income appropriation				(64,393)	64,393
Share-based compensation expense:
- value of services			1,217			1,217
- exercises	€ 119	2,090				2,209
Exercises, number of shares issued \| shares	793,200
Treasury shares			209			209
Issuance of ordinary shares	€ 1,222	88,375				89,597
Issuance of ordinary shares \| shares	8,145,176
Cost of equity transactions, net of tax		(6,761)				(6,761)
Balance at Jun. 30, 2021	€ 14,986	328,688	53,344	(233,549)	(86,399)	77,070
Ending balance (in shares) at Jun. 30, 2021 \| shares	99,908,938
Balance at Dec. 31, 2021	€ 15,786	409,258	52,512	(233,549)	(73,425)	€ 170,581
Beginning balance (in shares) at Dec. 31, 2021 \| shares	105,239,085					105,239,085
Total comprehensive loss			(399)		(171,493)	€ (171,892)
Income appropriation				(73,425)	73,425
Share-based compensation expense:
- value of services			369			369
- exercises	€ 384	3,333				3,718
Exercises, number of shares issued \| shares	2,563,011
Treasury shares
Issuance of ordinary shares	€ 1,432	89,195				90,627
Issuance of ordinary shares \| shares	9,549,761
Cost of equity transactions, net of tax		(148)				(148)
Balance at Jun. 30, 2022	€ 17,603	€ 501,638	€ 52,482	€ (306,974)	€ (171,493)	€ 93,255
Ending balance (in shares) at Jun. 30, 2022 \| shares	117,351,857					117,351,857

Related party transaction (Tables)

6 Months Ended

Jun. 30, 2022

The aggregate compensation of the members of the Company’s Management Board includes the following:

Schedule of key management compensation


€ in thousand	Six months ended June 30,
	2022		2021
Salaries and other short-term employee benefits		886		677
Other long-term benefits		18		15
Share-based payments (expense of the period)		288		448
Key management compensation		1,192		1,140

Schedule of rendering of services


€ in thousand	Six months ended June 30,
	2022		2021
Provision of services:		37		47
Operating activities		1,099		73
Provision of services		1,136		120

Other assets

6 Months Ended

Jun. 30, 2022

Other assets

15.

Other assets

Other assets include the following:

	June 30,			December 31,
€ in thousand	2022			2021
R&D tax credit receivables		40,031			35,390
Tax receivables		8,002			6,145
Prepaid expenses		5,359			5,131
Contract costs		3,010			3,010
Advance payments		2,035			27,375
Consumables and supplies on stock		1,414			1,722
Miscellaneous current assets		570			23
Other non-financial assets		60,422			78,796

Deposits		11,341			11,339
Miscellaneous financial assets		151			183
Other financial assets		11,491			11,522
Other assets		71,913			90,318
Less non-current portion		(17,948	)		(19,282	)
Current portion		53,965			71,036

Due to the short-term nature of the financial instruments included in other assets, their carrying amount is considered to be the same as their fair value.

The increase in R&D tax credit receivables is mainly related to increased research and development expenditures primarily in connection to the COVID-19 and Lyme disease vaccine candidates.

As at June 30, 2022 and December 31, 2021, the deposits mainly related to a deposit associated with a lease agreement.

As at June 30, 2022, advance payments were mainly related to contract research agreements, while the balance as at December 31, 2021 included advance payments for material for the VLA2001 production as well.

Contract costs mainly relate to the collaboration with Pfizer (see Note 1) and refer to costs to obtain a contract. It will be amortized in line with the pattern of revenue recognition.

Contingencies and Litigations (Details Narrative) - EUR (€) € in Millions	6 Months Ended	12 Months Ended
	Jun. 30, 2022	Dec. 31, 2021
Settlement costs	€ 5.2	€ 2.1
Additional expenses related to litigation	€ 3.1

Inventories

6 Months Ended

Jun. 30, 2022

Inventories

13.

Inventories

Inventories include the following:

Schedule of Inventories

	June 30,			December 31,
€ in thousand	2022			2021
Raw materials		99,195			102,082
Work in progress		116,188			55,681
Finished goods		14,636			8,135
Purchased goods (third party products)		3,638			7,362
Gross amount of Inventory before write-down		233,657			173,260
Less: write-down		(138,455	)		(49,162	)
Inventory		95,201			124,098

The increase in work in progress and finished goods is primarily related to the production of the COVID-19 vaccine.

Write-down provisions related to the inventory categories as follows:

	June 30,		December 31,
€ in thousand	2022		2021
Raw materials		71,325		29,751
Work in progress		62,452		15,096
Finished goods		4,317		3,974
Purchased goods (third party products)		361		342
Total write-down provision		138,455		49,162

Valneva suspended the manufacturing of VLA 2001. As a result, raw material acquired to produce VLA2001 which cannot be repurposed and used for other products may go unused. As at the June 30, 2022, €71.3 million of the raw material write-down provision (December 31, 2021: €29.8 million) as well as €60.6 million of the work in progress write-down provision (December 31, 2021: €11.8 million) was related to VLA2001 due to the reduced expected sales volumes for VLA2001. As at June 30, 2022, VLA2001-related inventory amounted to €188.4 million gross and €56.5 million net. The remaining write-down provision was related to Valneva’s commercialized vaccines IXIARO and DUKORAL due to the current COVID-19 pandemic. Commercial inventories not carrying a minimum residual shelf-life at the expected time of sale on the basis of the most current sales expectations have been written down. These write-downs totaled €6.2 million as at June 30, 2022 (December 31, 2021: €7.6 million), of which €4.3 million (December 31, 2021: €4.0 million) related to finished goods, €1.5 million (December 31, 2021: €3.3 million) related to work in progress and €0.4 million (December 31, 2021: €0.3 million) related to purchased goods.

In the six months ended June 30, 2022, the cost of inventories, which is recognized as an expense and is included in the position “Cost of goods and services”, amounted to €110.0 million (six months ended June 30, 2021: €12.1 million), of which €97.0 million (six months ended June 30, 2021: €4.4 million) related to write-down of inventory. In the six months ended June 30, 2022, €100.6 million (six months ended June 30, 2021: €1.3 million) of these expenses related to the VLA2001 and stem from write-downs of inventory, which is expected not to be sold, failed batches and batches at risk of failure.

As the travel industry is recovering, the previous write-down of our travel vaccines was reassessed as of June 30, 2022. The release of write-downs relating to commercialized products which originally had been posted due to lower sales expectations and limited shelf life of the products led to an income of €3.5 million in the six months ended June 30, 2022 (six months ended June 30, 2021: €3.1 million expense).

Contractual obligations (Tables)

6 Months Ended

Jun. 30, 2022

At December 31, 2021 € in thousand	<1 year		1-2 years		2-3 years		3-5 years		5- 10 years		10-15 years		>15 years		Total
Borrowings		7,121		27,061		21,499		20,534		1,765		—		—		77,980
Lease liabilities		4,060		26,142		2,870		5,761		12,798		9,928		1,905		63,464
Refund liabilities		101,070		82,654		49,701		55,000		12,720		—		—		301,145
Trade payables and accruals		68,119		—		—		—		—		—		—		68,119
Tax and employee-related liabilities⁵		10,101		—		—		—		—		—		—		10,101
Other liabilities		27		25		—		—		—		—		—		52
		190,499		135,882		74,070		81,295		27,282		9,928		1,905		520,861

At June 30, 2022 € in thousand		<1 year		1-2 years		2-3 years		3-5 years		5- 10 years		10-15 years		>15 years		Total
Borrowings		9,723		17,764		31,426		50,726		1,902		—		—		111,540
Lease liabilities		3,873		25,605		2,839		5,672		12,129		9,918		1,029		61,065
Refund liabilities		142,585		59,784		7,000		—		—		—		—		209,369
Trade payables and accruals		83,704		—		—		—		—		—		—		83,704
Tax and employee-related liabilities³		9,555		—		—		—		—		—		—		9,555
Other liabilities		24		25		—		—		—		—		—		49
		249,464		103,179		41,265		56,398		14,031		9,918		1,029		475,283

⁵

Social security and other tax payables are excluded from the tax and employee-related liabilities balance, as this analysis is required only for financial instruments.

Cash Flow information (Tables)

6 Months Ended

Jun. 30, 2022

Cash Flow Information

The following table shows the adjustments to reconcile net loss to net cash generated from operations:


€ in thousand	Six months ended June 30,
	2022			2021
Profit/(Loss) for the year		(171,493	)		(86,399	)
Adjustments for non-cash transactions:
■ Depreciation and amortization		11,153			6,101
■ Write-off / impairment fixed assets/intangibles		3,286			—
■ Share-based compensation expense/(income)		(8,921	)		3,484
■ Income tax expense/(income)		2,271			668
■ (Profit)/loss from disposal of property, plant, equipment and intangible assets		46			23
■ Share of (profit)/loss from associates		(9	)		90
■ Provision for employer contribution costs on share-based compensation plans		(19,290	)		4,596
■ Other non-cash income/expense		8,972			(6,163	)
■ Interest income		(35	)		(228	)
■ Interest expense		8,199			8,431
Changes in non-current operating assets and liabilities (excluding the effects of acquisition and exchange rate differences on consolidation):
■ Other non-current assets		1,335			1,413
■ Long term contract liabilities		—			(58	)
■ Long term refund liabilities		(94,780	)		6,988
■ Other non-current liabilities and provisions		601			(2	)
Changes in working capital (excluding the effects of acquisition and exchange rate differences on consolidation):
■ Inventory		26,041			(97,006	)
■ Trade and other receivables		44,960			(13,271	)
■ Contract liabilities		(4,304	)		248,910
■ Refund liabilities		44,654			(11,157	)
■ Trade, other payables and provisions		47,904			19,139
Cash generated from/(used in) operations		(99,410	)		85,560

List of direct or indirect interests held by the Company: (Details)

6 Months Ended

Jun. 30, 2022

Dec. 31, 2021

BliNK Biomedical SAS [member]

^[1]

Equity method*

Vaccines Holdings Sweden AB [member]

48.90%

Consolidation

Valneva Austria GmbH [member]

100.00%

Consolidation

Valneva Canada Inc. [member]

100.00%

Consolidation

Valneva France SAS [member]

100.00%

Consolidation

Valneva Scotland Ltd. [member]

100.00%

Consolidation

Valneva Sweden AB [member]

100.00%

Consolidation

100.00%

Valneva UK Ltd. [member]

Consolidation

Valneva USA, Inc. [member]

100.00%

Consolidation

Other income and expenses, net

100.00%

[1]	The investment in BliNK Biomedical SAS was reclassified from “Investments in associates” to “Assets classified as held for sale” as at June 30, 2022.

Schedule of Inventories (Details) - EUR (€) € in Thousands	Jun. 30, 2022	Dec. 31, 2021
Raw materials	€ 99,195	€ 102,082
Work in progress	116,188	55,681
Finished goods	14,636	8,135
Purchased goods (third party products)	3,638	7,362
Gross amount of Inventory before write-down	233,657	173,260
Less: write-down	(138,455)	(49,162)
Inventory	€ 95,201	€ 124,098

Basis of preparation

6 Months Ended

Jun. 30, 2022

Basis Of Preparation

Basis of preparation

Basis of preparation

The unaudited interim condensed consolidated financial statements of Valneva SE (“the Company”) together with its subsidiaries (the “Group” or “Valneva”) as at June 30, 2022 and for the six months ended June 30, 2022 and June 30, 2021, have been prepared in accordance with IAS 34 Interim Financial Reporting as adopted by the European Union (EC) and issued by the IASB authorizing the presentation of selected explanatory notes. In consequence, these consolidated financial statements must be read in conjunction with the consolidated annual financial statements for the year ended December 31, 2021.

The unaudited interim condensed consolidated financial statements of the Company were approved by the Management Board and authorized for issuance by the Supervisory Board on August 10, 2022.

The accounting policies adopted in the preparation of the unaudited interim consolidated financial statements are consistent with those followed in the preparation of the Group’s annual consolidated financial statements for the year ended December 31, 2021.

For ease of presentation, numbers have been rounded and, where indicated, are presented in thousands of Euros. Calculations, however, are based on exact figures. Therefore, the sum of the numbers in a column of a table may not conform to the total figure displayed in the column.

The unaudited interim condensed consolidated financial statements have been prepared on a going concern basis. Although it is difficult to predict future liquidity requirements, Valneva believes that the existing cash and cash equivalents as of June 30, 2022 amounting to €336.2 million will be sufficient to fund its operations for at least the next 12 months from the date of authorization of publication of these consolidated financial statements. While certain risks may have an adverse effect on the Company’s cash runway, debt and equity financing options exist to provide necessary funding.

Standards, amendments to existing standards and interpretations whose application is not yet mandatory

No standards, amendments to existing standards, or interpretations that were published but not yet applicable as of June 30, 2022, were early adopted or are expected to significantly impact the Company’s financial statements.

SIGNIFICANT EVENTS OF THE PERIOD AND SIGNIFICANT AGREEMENTS

COVID-19

Vaccine Supply Agreement with the UK Authority from 2020, its termination in 2021 and Settlement Agreement of 2022

In September 2020, Valneva entered into a supply agreement (“UK Supply Agreement”), with the Secretary of State for Business, Energy and Industrial Strategy of the United Kingdom (“UK Authority”), pursuant to which Valneva was obligated to develop, manufacture and supply SARS-CoV-2 vaccines, to the UK Authority in the United Kingdom of Great Britain, and Northern Ireland (“the UK”), including an obligation for Valneva to upgrade its manufacturing facilities in Scotland.

In September 2021, Valneva received notice of the UK Authority’s decision to terminate the UK Supply Agreement, and the termination became effective in October 2021.

In June 2022, Valneva and the UK Authority signed a settlement agreement. The settlement agreement resolves certain matters relating to the obligations of the Company and UK Authority following the termination of the UK Supply Agreement and in relation to the separate agreement relating to clinical trials of Valneva’s inactivated, adjuvanted COVID-19 vaccine candidate, VLA2001, in the UK, which remains in place. The Company continues to have certain other obligations (as stated below) pursuant to provisions of the UK Supply Agreement that survive its termination. Valneva has recognized an additional revenue of €89.4 million in the six months ended June 30, 2022; see Note 4.

Valneva’s other obligations relate to a royalty payable to the UK Authority for non-UK COVID sales (“royalty obligation”) as well as to investments in manufacturing, such as Valneva’s Almeida manufacturing facility, which was constructed with funds advanced by the UK Authority. Valneva assessed the likelihood of this royalty obligation and concluded it as remote, therefore no refund liability was accounted for as at June 30, 2022. Valneva may have certain obligations to the UK Authority, such as a partial return of funding received, with respect to assets acquired if they are sold, disposed, or repurposed (“CAPEX obligation”) on or before December 31, 2022. As of June 30, 2022, Valneva included €81.9 million in refund liabilities related to the CAPEX obligation as at June 30, 2022; see Note 20.

Advance Purchase Agreement with the European Commission in 2021 and notice of intent to terminate the Advance Purchase Agreement in 2022

In November 2021, Valneva signed an Advance Purchase Agreement (“APA”) with the European Commission (“EC”) to supply up to 60 million doses of VLA2001 over two years. Under the terms of the APA, Valneva was to deliver 24.3 million doses in 2022 (starting in April 2022), subject to approval of VLA2001 by the European Medicines Agency (“EMA”). The EC had an option to purchase a further 35.7 million doses for delivery in 2023. During 2021, no revenue was recognized, as the deliveries were to start in the second quarter of 2022. Advanced payments of €116.9 million were included as contract liabilities as at December 31, 2021.

In May 2022, Valneva received a notice from the EC of its intent to terminate the APA on the basis of a right to terminate the APA if VLA2001 had not received a marketing authorization from the EMA by April 30, 2022. Based on the terms of the APA, Valneva had 30 days from May 13, 2022, to obtain a marketing authorization, which Valneva did not obtain within this period. Valneva did, however, obtain a marketing authorization in June 2022. As at the balance sheet date June 30, 2022, Valneva was still working with the EC and the participating EC Member States to agree to a remediation plan. As at June 30, 2022, €116.6 million in advance payments are recorded as contract liabilities; see Note 19. VLA signed an amended APA in July 2022; please refer to Note 27 for more details. The APA does not require reimbursement of down payments that have already been committed. Pursuant to the terms of the APA, a period now opens during which Valneva will provide a financial statement to the EC describing the use of the advance payments.

Authorizations and Emergency Use granted by Health Authorities for Valneva’s inactivated, adjuvanted COVID-19 vaccine, VLA2001 in 2022

In March 2022, Valneva announced that the National Health Regulatory Authority (NHRA) of the Kingdom of Bahrain had granted an Emergency Use Authorization for VLA2001.

In April 2022, Valneva announced that the Medicines and Healthcare products Regulatory Agency (MHRA) of the UK had granted Conditional Marketing Authorization for VLA2001, for primary immunization in adults 18 to 50 years of age.

In May 2022, Valneva announced that the United Arab Emirates granted Emergency Use Authorization for VLA2001.

In June 2022, Valneva announced that the EC had granted a marketing authorization for VLA2001 in Europe, for use as primary vaccination in people from 18 to 50 years of age. With this approval, VLA2001 became the first COVID-19 vaccine to receive a standard marketing authorization in Europe. The marketing authorization covers all 28 European Union Member States as well as Iceland, Liechtenstein, and Norway.

LYME

In April 2020, Valneva signed an agreement with Pfizer (the “Collaboration and License Agreement”) to co-develop and commercialize the Group’s Lyme disease vaccine candidate (VLA15). This is classified as an agreement with a customer as defined by IFRS 15 guidance on revenue contracts with customers, and accordingly, amounts received or payable by Valneva under the Collaboration and License Agreement are accounted for in the Group’s revenues. The Collaboration and License Agreement included a €116.9 million ($130 million) upfront payment to Valneva, which was received in June 2020. Valneva is obligated to reimburse certain development costs incurred by Pfizer up to an agreed amount, through completion of the development program, which is expected to finish in 2025. The transaction price according to IFRS15 was determined taking into consideration the expected refund obligation of Valneva relating to Valneva’s share of the development costs. The agreement includes research & development and service performance obligations for which revenue is recognized over time as well as a license performance obligation for which revenue is recognized at a point in time when Pfizer can benefit and use the license without the further involvement of Valneva. The transaction has been allocated according to the various performance obligations in proportion to their standalone selling price. In the year ended December 31, 2021, €14.3 million was recognized as other revenues. €3.0 million of costs to obtain a contract was included in other non-current assets as at December 31, 2021, and €79.6 million was recognized as discounted refund liabilities.

In June 2022, Valneva and Pfizer updated the terms of their Collaboration and License agreement which was signed in April 2020. From May 1, 2022, onward Valneva will fund 40% of the remaining shared development costs compared to 30% in the initial agreement. Pfizer will pay Valneva tiered royalties ranging from 14% to 22%, compared to royalties starting at 19% in the initial agreement. In addition, Valneva is eligible for up to $100 million on the achievement of cumulative sales targets. Other development and early commercialization milestones remain $168 million, including a $25 million payment to Valneva upon Pfizer’s initiation of the Phase 3 study. In the six months ended June 30, 2022, €36.1 million was recognized as net negative other revenues as Valneva’s expected repayment obligations relating to development costs incurred by Pfizer increased compared to the original agreement; as this agreement is accounted for as an IFRS 15 contract with customers, payments to Pfizer are treated as negative revenue. As at June 30, 2022, the discounted refund liability amounted to €118.4 million (December 31, 2021: €79.6 million), of which €59.8 million was recognized as a non-current refund liability. €3.0 million of costs to obtain a contract were included in other non-current assets as at June 30, 2022, For more details, see Note 4 and Note 20.

US DEPARTMENT OF DEFENSE (DoD)

In September 2020, the U.S. Department of Defense (DoD) awarded Valneva a new contract for the supply of IXIARO. The terms of the agreement, as subsequently amended in September 2021, include an initial base year followed by two option years, each with a range of minimum and maximum potential orders. The base year had a minimum value of approximately $53 million for 370,000 doses, and the first option year, which the DoD exercised in September 2021, had a minimum value of approximately $28.8 million for 200,000 doses. The second option year, if exercised, has a minimum value of approximately $36 million for 250,000 doses. In order to support its customer through this pandemic period, Valneva also agreed to provide additional inventory to the DoD after September 2023 to mitigate the potential impact of unused stock that may expire. This replacement inventory will be provided free of charge and resulted in a contract liability of $5.4 million recognized as at June 30, 2022 (December 31, 2021: $5.4 million).

FINANCING

In February 2022, Valneva announced that its subsidiary Valneva Scotland was awarded research and development funding of up to £20 million by Scottish Enterprise, Scotland’s national economic development agency. The investment is comprised of two grants, which build on the agency’s long standing engagement with Valneva and will benefit the Company’s manufacturing site in Livingston. The grants are expected to be received over the next three years. The first grant of up to £12.5 million will support development related to the manufacture of Valneva’s COVID-19 vaccine. The second grant of up to £7.5 million will support development connected to Valneva’s manufacturing processes for other vaccines. As at June 30, 2022, no cash had been received. Valneva could also have to repay the grant funding for the COVID-19 program if it fails to comply with the terms of the grant. Also, the amount and conditions of the grant for the COVID-19 program could change depending on the evolution of the program.

In April 2022, Valneva signed an amendment to increase the principal amount of its existing €54.1 million ($60 million) debt financing agreement with funds managed by leading U.S.-based healthcare investment firms Deerfield Management Company and OrbiMed. The original loan agreement was signed in February 2020. This amendment provided Valneva immediate access to €18.2 million ($20 million), with an additional $20 million available upon potential approval of VLA2001, by the European Medicines Agency. The increased funding will be used to further invest in Research & Development projects, including market access preparations for VLA1553. The loan interest rate remains unchanged at 9.95% (equivalent to 10.09% on an annual basis). The interest-only period was extended from the second quarter of 2023 to the third quarter of 2024, and the loan will now mature in the first quarter of 2027 instead of the first quarter of 2026. As at June 30, 2022, a total of €72.4 million ($80.0 million) was drawn down, including the tranches originally drawn in 2020. As at December 31, 2021, €54.1 million ($60.0 million) was drawn down. As at June 30, 2022, the carrying amount was €71.0 million (December 31, 2021: €49.7 million). The loan is secured by substantially all of Valneva’s assets, including its intellectual property, and is guaranteed by Valneva SE and certain of its subsidiaries.

In June 2022, Valneva signed an Equity Subscription Agreement with Pfizer. Pursuant to the Equity Subscription Agreement, Pfizer invested €90.5 million ($95 million) in Valneva, representing 8.1% of Valneva’s share capital at a price of €9.49 per share. The per share purchase price was determined based on the average closing price of the Company’s shares on Euronext Paris during the 10 trading days preceding the date of the Equity Subscription Agreement. The equity investment closed on June 22, 2022.

KEY SOURCES OF ESTIMATION UNCERTAINTY

Below are listed the key assumptions concerning the future, and other key sources of estimation uncertainty in the reporting period that may have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year. Those assumptions and estimates are discussed below as an update of the key sources of estimation uncertainty provided as at December 31, 2021

●

Notes 1, 4, and 20: The likelihood of the royalty obligation towards the UK Authority was updated. As at December 31, 2021, the royalty obligation was assessed at the maximum amount, as significant COVID sales were expected to occur outside the UK (refer to Note 1). As at June 30, 2022, the terms of the royalty obligation were redefined under the 2022 settlement agreement. As at June 30, 2022 management assessed the likelihood for this future obligation as remote. This resulted in a value of € nil, and the refund liability was updated in this respect. This led to other revenues recognized of €89.4 million (refer to Note 20). Note 4 contains details on the other revenue recognized following the re-assessment of the royalty obligation.

●

Note 13: Write-down analysis for inventories: For the assessment of write-down of raw material the current production plans have been taken into account. Raw material which will not be used before expiry date was written down. For this assessment, the status of the expiry dates as of the balance sheet date was taken. For the assessment of write-downs of work in progress, finished goods and purchased goods, the forecast sales plans and a minimum shelf life at the time of the most current sales expectations have been taken into account. Given the significant changes to the ordered volumes and the expected future demand for VLA2001, a certain amount of related inventory was written-off. The release of write-down for travel vaccines that occurred in the wake of a recovering travel industry during 2022 has likewise been re-considered.

●

Note 25: Recognition and measurement of litigations and contingencies: key assumptions were made about the likelihood and magnitude of an outflow of resources. In estimating the provision for onerous contracts, the management made assumptions regarding the estimated amount of termination costs for certain agreements.

Other income and expenses, net

6 Months Ended

Jun. 30, 2022

Other Income And Expenses Net

Other income and expenses, net

Other income and expenses, net include the following:


	Six months ended June 30,
€ in thousand	2022			2021
Research and development tax credit		6,770			9,635
Grant income		89			1,145
Profit/(loss) on disposal of fixed assets, net		(46	)		(21	)
Taxes, duties, fees, charges, other than income tax		(227	)		(133	)
Miscellaneous income/(expenses), net		(2,989	)		(237	)
Other income and expenses, net		3,597			10,389

In terms of the Research and development tax credit, €6.2 million (June 30, 2021: €9.1 million) are related to Research & Development programs executed in Austria, mainly for COVID-19 and Lyme disease vaccine candidates, whereas €0.6 million (June 30, 2021: €0.6 million) related to France.

Revenues from contracts with customers

6 Months Ended

Jun. 30, 2022

Revenues from contracts with customers

Revenues from contracts with customers

Revenues, as presented in the unaudited Consolidated Interim Income Statement and in the Segment Reporting (see Note 3), include both revenues from contracts with customers and other revenues, which are out of the scope of IFRS 15:

Six months ended June 30, 2021 € in thousand	Commercialized products		COVID		Vaccine candidates		Technologies and services		Total
Revenues from contracts with customers		31,772		—		1,849		13,429		47,050
Miscellaneous revenues		—		—		—		451		451
Revenues		31,772		—		1,849		13,880		47,502

Six months ended June 30, 2022 € in thousand	Commercialized products		COVID		Vaccine candidates		Technologies and services			Total
Revenues from contracts with customers		29,552		93,181		956		(30,830	)		92,859
Miscellaneous revenues		—		—		—		365			365
Revenues		29,552		93,181		956		(30,465	)		93,224

In six months ended June 30, 2022, revenues from the COVID segment included €89.4 million from the re-assessment of the likelihood of the royalty obligation towards the UK Authority following the settlement agreement. In addition, the COVID segment included product sales of € 3.8 million for shipments to Bahrain. Revenues from technologies and services included €36.1 million negative revenue from the collaboration and license agreement with Pfizer, which was amended in June 2022 (see Note 1).

Disaggregated revenue information

The Group’s revenues from contracts with customers are disaggregated as follows:

Type of goods or service

Schedule of type of goods or service

Six months ended June 30, 2021 € in thousand	Commercialized products		COVID		Vaccine candidates		Technologies and services		Total
IXIARO		25,394		—		—		—		25,394
DUKORAL		428		—		—		—		428
Third party products		5,950		—		—		—		5,950
Lyme VLA15		—		—		—		5,616		5,616
Chikungunya VLA1553		—		—		1,849		—		1,849
Services related to clinical trial material		—		—		—		5,727		5,727
Others		—		—		—		2,085		2,085
Revenues from contracts with customers		31,772		—		1,849		13,429		47,050

Six months ended June 30, 2022 € in thousand	Commercialized products		COVID		Vaccine candidates		Technologies and services			Total
IXIARO		12,283		—		—		—			12,283
DUKORAL		5,766		—		—		—			5,766
Third party products		11,503		—		—		—			11,503
COVID VLA2001		—		93,181		—		—			93,181
Chikungunya VLA1553		—		—		956		—			956
Lyme VLA15		—		—		—		(36,107	)		(36,107	)
Services related to clinical trial material		—		—		—		2,490			2,490
Others		—		—		—		2,786			2,786
Revenues from contracts with customers		29,552		93,181		956		(30,830	)		92,859

In the six months ended June 30, 2022, revenues from the COVID segment included €89.4 million from the re-assessment of the likelihood of the royalty obligation towards the UK Authority following the settlement agreement. In addition, the COVID segment included product sales of €3.8 million for shipments to Bahrain. Revenues from Lyme VLA15 included €36.1 million negative revenue from the Collaboration and License Agreement with Pfizer, which was amended in June 2022 (see Note 1).

Geographical markets

Sales channels for product sales

Commercialized products are sold via the following sales channels:

Schedule of commercialized products


	Six months ended June 30,
€ in thousand	2022		2021
Direct product sales		25,302		30,663
Indirect product sales		4,250		1,110
Total product sales		29,552		31,772

Schedule of income statement by segment (Details) - EUR (€) € in Thousands	6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021
IfrsStatementLineItems [Line Items]
Product sales	€ 33,335	€ 31,762
Other revenues	59,889	15,740
Revenues	93,224	47,502
Cost of sales	(171,479)	(34,778)
Research and development expense	(51,883)	(78,737)
Marketing and distribution expenses	(7,837)	(9,643)
General and administrative expenses	(16,031)	(20,904)
Other income and expenses, net	3,597	10,389
Operating income/(loss)	(150,410)	(86,172)
Commercialized products [member]
IfrsStatementLineItems [Line Items]
Product sales	29,537	31,762
Other revenues	15	10
Revenues	29,552	31,772
Cost of sales	(12,296)	(19,326)
Research and development expense	(406)	(878)
Marketing and distribution expenses	(4,156)	(7,086)
General and administrative expenses	(3,236)	(2,519)
Other income and expenses, net	110	2,126
Operating income/(loss)	9,568	4,089
COVID [member]
IfrsStatementLineItems [Line Items]
Product sales	3,798
Other revenues	89,383
Revenues	93,181
Cost of sales	(154,883)	(4,156)
Research and development expense	(44,223)	(46,105)
Marketing and distribution expenses	(1,483)	(444)
General and administrative expenses	(8,359)	(9,438)
Other income and expenses, net	5,099	4,690
Operating income/(loss)	(110,667)	(55,454)
Vaccine candidates [member]
IfrsStatementLineItems [Line Items]
Product sales
Other revenues	956	1,849
Revenues	956	1,849
Cost of sales
Research and development expense	(6,702)	(29,513)
Marketing and distribution expenses	(2,182)	(2,037)
General and administrative expenses	(1,759)	(3,256)
Other income and expenses, net	1,365	2,952
Operating income/(loss)	(8,322)	(30,005)
Technologies and services [member]
IfrsStatementLineItems [Line Items]
Product sales
Other revenues	(30,465)	13,880
Revenues	(30,465)	13,880
Cost of sales	(4,301)	(11,295)
Research and development expense	(551)	(2,241)
Marketing and distribution expenses	(16)	(75)
General and administrative expenses	(924)	(2,194)
Other income and expenses, net	381	900
Operating income/(loss)	(35,876)	(1,025)
Corporate overhead [member]
IfrsStatementLineItems [Line Items]
Product sales
Other revenues
Revenues
Cost of sales
Research and development expense
Marketing and distribution expenses
General and administrative expenses	(1,752)	(3,498)
Other income and expenses, net	(3,359)	(279)
Operating income/(loss)	€ (5,111)	€ (3,776)

Financial Instruments

6 Months Ended

Jun. 30, 2022

Financial Instruments

12.

Financial Instruments

For the majority of the borrowings and other loans, the fair values are not materially different from their carrying amounts since the interest payable on those borrowings is either close to current market rates or the borrowings are of a short-term nature. As at June 30, 2022, material differences are identified only for guaranteed other loans. Based on an estimated arms’ length interest rate of 9.87%, the fair value is €2.7 million (carrying amount is €3.0 million).

The fair values of all other financial instruments equal their book values as at June 30, 2022.

Other provisions (Details) - EUR (€) € in Thousands	6 Months Ended	12 Months Ended
Other provisions (Details) - EUR (€) € in Thousands	Jun. 30, 2022	Dec. 31, 2021
Balance as at January 1	€ 15,806	€ 2,124
Additions	31,305	13,682
Usage	(250)
Closing balance	46,862	15,806
Less non-current portion
Current portion	€ 46,862	€ 15,806

Operating expenses (Details Narrative) - EUR (€) € in Millions	6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021
Writedown of inventory	€ 83.5
Provision for expected settlement costs	26.9
Writedown of advanced payments	14.1
Consulting and other purchased services	71.1	€ 33.4
Impairment	€ 3.3

Related party transaction

6 Months Ended

Jun. 30, 2022

Related party transaction

26.

Related party transaction

Key management compensation

The aggregate compensation of the members of the Company’s Management Board includes the following:

Schedule of key management compensation


€ in thousand	Six months ended June 30,
	2022		2021
Salaries and other short-term employee benefits		886		677
Other long-term benefits		18		15
Share-based payments (expense of the period)		288		448
Key management compensation		1,192		1,140

Supervisory Board compensation

The aggregate compensation of the members of the Company’s Supervisory Board amounted to €162 thousand (six months ended June 30, 2021: €140 thousand).

R&D tax-credit

As at June 30, 2022, the aggregate amount of Valneva SE’ R&D tax-credit financed by Bpifrance amounted to €2.4 million. Bpifrance was not a related party as at December 31, 2021.

Rendering of services

Services provided by Valneva to Groupe Grimaud La Corbière SAS, being shareholder of Valneva are considered related party transactions and consist of services within a Collaboration and Research License agreement and of the provision of premises and equipment.

Schedule of rendering of services


€ in thousand	Six months ended June 30,
	2022		2021
Provision of services:		37		47
Operating activities		1,099		73
Provision of services		1,136		120

Operating activities amounting to € 1.1 million included Valneva’s agreement with Vital Meat SAS (part of Group Grimaud La Corbière SAS) according to which Valneva transferred certain assets (patent and cell lines) to Vital Meat SAS for a consideration of €1.0 million.

Refund liabilities (Tables)

6 Months Ended

Jun. 30, 2022

Refund Liabilities

Development of refund liabilities:

	Six months ended June 30,			Year ended December 31,
€ in thousand	2022			2021
Balance as at January 1		254,581			111,426
Revenue Recognition		(89,356	)		—
Additions		48,751			159,179
Payments		(12,771	)		(18,022	)
Other releases		-			(15,198	)
Interest expense capitalized		4,812			8,478
Exchange rate difference		3 255			8,718
Closing balance		209,274			254,581
Less non-current portion		(66,689	)		(158,970	)
Current portion		142,585			95,611

Contingencies and Litigations

6 Months Ended

Jun. 30, 2022

Contingencies and Litigations

25.

Contingencies and Litigations

Following the merger between the companies Vivalis SA and Intercell AG in 2013, certain former Intercell shareholders initiated legal proceedings before the Commercial Court of Vienna to request a revision of either the cash compensation paid to departing shareholders or the exchange ratio between Intercell and Valneva shares used in the merger. In October 2021, a court-appointed expert recommended an increase in the cash compensation as well as further valuation work on the exchange ratio. In April 2022, this expert presented the result of its work on the exchange ratio; however, the final outcome will depend on the court’s position on a couple of legal points. The Company therefore assessed the probability of several scenarios and decided to hold a provision of €5.2 million to cover the reassessed risk and potential legal costs (December 31, 2021: €2.1 million). €3.1 million of additional expenses related to this litigation was included in “other expenses” in the period ended June 30, 2022.

In July 2016, a claim for additional payment was raised and litigation was filed in December 2016, in connection with the 2009 acquisition of Humalys SAS, from which the Company had acquired a technology, which was later combined with other antibody discovery technologies and spun off to BliNK Biomedical SAS in early 2015. Former shareholders of Humalys claimed additional consideration as a result of the spin-off transaction. A first instance decision in the Humalys case is expected in the first half of 2023. After consultation with its external advisors the Company believes that this claim is unsubstantiated, and the filed litigation is not likely to succeed in court. Detailed information on the potential specific financial consequences, which might result from a successful claim could adversely affect the Company’s ability to defend its interests in this case and therefore is not provided, in accordance with IAS 37.92.

Trade receivables (Details Narrative) - EUR (€) € in Millions	Jun. 30, 2022	Dec. 31, 2021
Trade Receivables
Receivables from contracts with customers	€ 16.2	€ 40.9

Cash and cash equivalents (Tables)

6 Months Ended

Jun. 30, 2022

Cash, cash equivalents and short-term deposits include the following:

	June 30,		December 31,
€ in thousand	2022		2021
Cash on hand		8		3
Cash at bank		336,169		346,639
Restricted cash		48		44
Cash and cash equivalents		336,225		346,686

Unaudited Interim Condensed Consolidated Balance Sheets - EUR (€) € in Thousands	Jun. 30, 2022	Dec. 31, 2021
ASSETS
Non-current assets	€ 221,330	€ 231,520
Intangible assets	30,714	32,700
Right of use assets	46,752	48,285
Property, plant and equipment	123,240	125,545
Investments in associates		2,124
Deferred tax assets	2,676	3,582
Other assets	17,948	19,282
Current assets	503,776	585,832
Inventories	95,201	124,098
Trade receivables	16,251	44,013
Other assets	53,965	71,036
Cash and cash equivalents	336,225	346,686
Assets classified as held for sale	2,134
TOTAL ASSETS	725,105	817,352
EQUITY
Capital and reserves attributable to the Company’s equity holders	93,255	170,581
Share capital	17,603	15,786
Share premium	501,638	409,258
Other reserves	52,482	52,512
Retained earnings/(Accumulated deficit)	(306,974)	(233,549)
Loss for the period	(171,493)	(73,425)
LIABILITIES
Non-current liabilities	195,722	277,791
Borrowings	67,058	50,726
Lease liabilities	51,931	53,687
Contract liabilities	5,110	4,741
Refund liabilities	66,689	158,970
Provisions	2,302	8,308
Deferred tax liabilities	1,978	1,290
Other liabilities	654	69
Current liabilities	436,128	368,979
Borrowings	11,543	7,107
Trade payables and accruals	83,704	68,119
Income tax liability	259	83
Tax and employee-related liabilities	15,199	17,249
Lease liabilities	2,989	3,135
Contract liabilities	119,711	124,017
Refund liabilities	142,585	95,611
Provisions	56,884	48,708
Other liabilities	3,254	4,950
TOTAL LIABILITIES	631,850	646,771
TOTAL EQUITY AND LIABILITIES	€ 725,105	€ 817,352

Other liabilities

6 Months Ended

Jun. 30, 2022

Cash and cash equivalents

22.

Other liabilities

Schedule of other liabilities

	June 30,			December 31,
€ in thousand	2022			2021
Deferred income		3,859			4,966
Other financial liabilities		47			44
Miscellaneous liabilities		3			8
Other liabilities		3,908			5,019
Less non-current portion		(654	)		(69	)
Current portion		3,254			4,950

Provisions

6 Months Ended

Jun. 30, 2022

Provisions

21.

Provisions

21.1

Provisions for employee commitments


€ in thousand	June 30, 2022			December 31, 2021
Employer contribution costs on share-based compensation plans		7,050			26,520
Phantom shares		4,977			14,267
Retirement termination benefits		297			422
Balance at June 30		12,324			41,210
Less non-current portion		(2,302	)		(8,308	)
Current portion		10,022			32,901

Employer contribution costs on share-based compensation plans and phantom shares are calculated at the balance sheet date. The share price of Valneva as at June 30, 2022, was €10.86 (December 31, 2021: €24.50). The decrease in the provision for employer contribution costs on share-based compensation plans as well as on phantom shares related to the exercise of programs in the period ended June 30, 2022 as well as related to the decrease in share-price.

21.2

Other provisions

	Six months ended June 30,			Year ended December 31,
€ in thousand	2022			2021
Balance as at January 1		15,806			2,124
Additions		31,305			13,682
Usage		(250	)		—
Closing balance		46,862			15,806
Less non-current portion		—			—
Current portion		46,862			15,806

As at June 30, 2022, the increase in other provisions included €27.8 million of expected legal and settlement costs in connection with judicial or contractual claims and an increased provision of €3.1 million for the court proceeding related to the Intercell AG/Vivalis SA merger. For more information see Note 25.

Property, plant and equipment (Details Narrative) - EUR (€)	6 Months Ended
	Jun. 30, 2022	Dec. 31, 2021
Property, plant and equipment	€ 123,200,000	€ 125,500,000
Depreciation, property, plant and equipment	7,700,000
Write-downs (reversals of write-downs) of property, plant and equipment	3,300,000
Increase (decrease) through net exchange differences, property, plant and equipment	3,900,000
Offset by additions	€ 12,600,000

Cash and cash equivalents

6 Months Ended

Jun. 30, 2022

16.

Cash and cash equivalents

Cash, cash equivalents and short-term deposits include the following:

	June 30,		December 31,
€ in thousand	2022		2021
Cash on hand		8		3
Cash at bank		336,169		346,639
Restricted cash		48		44
Cash and cash equivalents		336,225		346,686

As at June 30, 2022, and December 31, 2021, the restricted cash was a Certificate of Deposit with restricted limited access to secure the credit limit for the Company’s commercial card ($50.0 thousand).

As at June 30, 2022, the minimum liquidity requirement for the Group according to the debt financing agreement with U.S. healthcare funds Deerfield and OrbiMed was €35.0 million (December 31, 2021: €50.0 million) (see Note 18).

Unaudited Interim Condensed Consolidated Statements of Comprehensive Income (Loss) - EUR (€) € in Thousands	6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021
Profit or loss [abstract]
Loss for the period	€ (171,493)	€ (86,399)
Items that may be reclassified to profit or loss
Currency translation differences	(567)	(424)
Items that will not be reclassified to profit or loss
Defined benefit plan actuarial gains	168
Other comprehensive loss for the period, net of tax	(399)	(424)
TOTAL COMPREHENSIVE LOSS FOR THE PERIOD ATTRIBUTABLE TO THE OWNERS OF THE COMPANY	€ (171,892)	€ (86,823)

- Definition

The total of income less expenses from continuing and discontinued operations, excluding the components of other comprehensive income. [Refer: Other comprehensive income]

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Name IAS
-Number 7
-IssueDate 2021-01-01
-Paragraph 18
-Subparagraph b
-URI http://eifrs.ifrs.org/eifrs/xifrs-link?type=IAS&num=7&code=ifrs-tx-2021-en-r&anchor=para_18_b&doctype=Standard
-URIDate 2021-03-24

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Name IFRS
-Number 1
-IssueDate 2021-01-01
-Paragraph 24
-Subparagraph b
-URI http://eifrs.ifrs.org/eifrs/xifrs-link?type=IFRS&num=1&code=ifrs-tx-2021-en-r&anchor=para_24_b&doctype=Standard
-URIDate 2021-03-24

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Name IFRS
-Number 1
-IssueDate 2021-01-01
-Paragraph 32
-Subparagraph a
-Clause ii
-URI http://eifrs.ifrs.org/eifrs/xifrs-link?type=IFRS&num=1&code=ifrs-tx-2021-en-r&anchor=para_32_a_ii&doctype=Standard
-URIDate 2021-03-24

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
-Name IFRS
-Number 8
-IssueDate 2021-01-01
-Paragraph 28
-Subparagraph b
-URI http://eifrs.ifrs.org/eifrs/xifrs-link?type=IFRS&num=8&code=ifrs-tx-2021-en-r&anchor=para_28_b&doctype=Standard
-URIDate 2021-03-24

Reference 5: http://www.xbrl.org/2003/role/exampleRef
-Note Effective on first application of IFRS 9
-Name IFRS
-Number 4
-IssueDate 2021-01-01
-Paragraph 39L
-Subparagraph e
-URI http://eifrs.ifrs.org/eifrs/xifrs-link?type=IFRS&num=4&code=ifrs-tx-2021-en-b&anchor=para_39L_e&doctype=Standard
-URIDate 2021-03-24

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Name IFRS
-Number 8
-IssueDate 2021-01-01
-Paragraph 23
-URI http://eifrs.ifrs.org/eifrs/xifrs-link?type=IFRS&num=8&code=ifrs-tx-2021-en-r&anchor=para_23&doctype=Standard
-URIDate 2021-03-24

Reference 7: http://www.xbrl.org/2003/role/exampleRef
-Note Effective 2023-01-01
-Name IFRS
-Number 17
-IssueDate 2021-01-01
-Paragraph 113
-Subparagraph b
-URI http://eifrs.ifrs.org/eifrs/xifrs-link?type=IFRS&num=17&code=ifrs-tx-2021-en-r&anchor=para_113_b&doctype=Standard
-URIDate 2021-03-24

Reference 8: http://www.xbrl.org/2003/role/exampleRef
-Name IFRS
-Number 12
-IssueDate 2021-01-01
-Paragraph B10
-Subparagraph b
-URI http://eifrs.ifrs.org/eifrs/xifrs-link?type=IFRS&num=12&code=ifrs-tx-2021-en-r&anchor=para_B10_b&doctype=Appendix&subtype=B
-URIDate 2021-03-24

Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Name IAS
-Number 1
-IssueDate 2021-01-01
-Paragraph 106
-Subparagraph d
-Clause i
-URI http://eifrs.ifrs.org/eifrs/xifrs-link?type=IAS&num=1&code=ifrs-tx-2021-en-r&anchor=para_106_d_i&doctype=Standard
-URIDate 2021-03-24

Reference 10: http://www.xbrl.org/2003/role/disclosureRef
-Name IAS
-Number 1
-IssueDate 2021-01-01
-Paragraph 81A
-Subparagraph a
-URI http://eifrs.ifrs.org/eifrs/xifrs-link?type=IAS&num=1&code=ifrs-tx-2021-en-r&anchor=para_81A_a&doctype=Standard
-URIDate 2021-03-24

+ Details

Impairment testing (Tables)

6 Months Ended

Jun. 30, 2022

Schedule of sensitivity analysis

Sensitivity analysis	June 30, 2022			December 31, 2021
	IXIARO	DUKORAL	Chikungunya	IXIARO	DUKORAL
WACC	6.67%	6.69%	6.87%	7.49%	7.23%
Break-even WACC	44.89%	12.52%	47.94%	53.11%	13.10%
Impairment if WACC increases by 1%	NO	NO	NO	NO	NO
Impairment if sales reduce by 10%	NO	NO	NO	NO	NO

Property, plant and equipment

6 Months Ended

Jun. 30, 2022

Property, plant and equipment

10.

Property, plant and equipment

In the first six months of 2022, property, plant and equipment decreased from €125.5 million as at December 31, 2021 to €123.2 million as at June 30, 2022. This decrease relates to depreciation expenses (€7.7 million), impairment expenses (€3.3 million) and exchange rate differences (€3.9 million) and is partly offset by additions (€12.6 million).

Schedule of commercialized products (Details) - EUR (€) € in Thousands	6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021
Direct product sales	€ 25,302	€ 30,663
Indirect product sales	4,250	1,110
Total product sales	€ 29,552	€ 31,772

Finance income/(expenses) and foreign exchange gain/(losses), net

6 Months Ended

Jun. 30, 2022

Finance income/(expenses) and foreign exchange gain/(losses), net

Finance income/(expenses) and foreign exchange gain/(losses), net


	Six months ended June 30,
€ in thousand	2022			2021
Finance income
Interest income from other parties		35			228
Total finance income		35			228

Finance expense
Interest expense on loans		(2,695	)		(3,820	)
Interest expense on refund liabilities		(4,812	)		(4,104	)
Interest expense on lease liabilities		(457	)		(419	)
Other interest expense		(235	)		(88	)
Total finance expense		(8,199	)		(8,431	)

Foreign exchange gain/(losses), net		(10,657	)		8,735

Finance income/(expense), net		(18,821	)		532

This was mainly a result of a foreign exchange loss amounting to €10.7 million in the first half of 2022, primarily driven by revaluation results of non-Euro denominated balance sheet positions, compared to a net foreign exchange gain of €8.7 million in the first half of 2021.

Cover	6 Months Ended
Cover	Jun. 30, 2022
Cover [Abstract]
Document Type	6-K
Amendment Flag	false
Document Period End Date	Jun. 30, 2022
Document Fiscal Period Focus	Q2
Document Fiscal Year Focus	2022
Current Fiscal Year End Date	--12-31
Entity File Number	001-40377
Entity Registrant Name	Valneva SE
Entity Central Index Key	0001836564

Other liabilities (Tables)

6 Months Ended

Jun. 30, 2022

Schedule of other liabilities

	June 30,			December 31,
€ in thousand	2022			2021
Deferred income		3,859			4,966
Other financial liabilities		47			44
Miscellaneous liabilities		3			8
Other liabilities		3,908			5,019
Less non-current portion		(654	)		(69	)
Current portion		3,254			4,950

Schedule of other liabilities (Details) - EUR (€) € in Thousands	Jun. 30, 2022	Dec. 31, 2021
Deferred income	€ 3,859	€ 4,966
Other financial liabilities	47	44
Miscellaneous liabilities	3	8
Other liabilities	3,908	5,019
Less non-current portion	(654)	(69)
Current portion	€ 3,254	€ 4,950

Basis of preparation (Details Narrative)		1 Months Ended			6 Months Ended		12 Months Ended
Basis of preparation (Details Narrative)	Sep. 30, 2020 USD ($) Number	Nov. 30, 2021 Number	Apr. 30, 2020 EUR (€)	Apr. 30, 2020 USD ($)	Jun. 30, 2022 EUR (€) € / shares	Jun. 30, 2021 EUR (€)	Dec. 31, 2021 EUR (€)	Jun. 30, 2022 USD ($)	Dec. 31, 2021 USD ($)	Dec. 31, 2020 EUR (€)	Jun. 30, 2020 USD ($)
IfrsStatementLineItems [Line Items]
Cash and cash equivalents					€ 336,200,000
Refund liabilities					209,274,000		€ 254,581,000			€ 111,426,000
Contract liabilities					124,821,000		128,758,000			€ 89,636,000
Other revenue					59,889,000	€ 15,740,000
Non-current assets					221,330,000		231,520,000
Refund liabilities non current					66,689,000		158,970,000
Revenue from sale of goods					33,335,000	€ 31,762,000
Debt financing agreement principal amount					54,100,000
Debt financing agreement additional principal amount					€ 18,200,000
Borrowings, interest rate					9.95%			9.95%
Borrowings, interest rate, annual basis					10.09%			10.09%
Loans received					€ 72,400,000		54,100,000
Carrying amount of loan received					71,000,000.0		49,700,000
Valneva Scotland Ltd. [member]
IfrsStatementLineItems [Line Items]
Research and Development Funding					20,000,000
Research and Development Funding COVID Grant					12,500,000
Research and Development Funding chik Grant					7,500,000
United States of America, Dollars
IfrsStatementLineItems [Line Items]
Debt financing agreement principal amount \| $								$ 60,000,000
Debt financing agreement additional principal amount \| $								20,000,000
Debt financing agreement additional principal amount upon approval of VLA 2001 \| $								20,000,000
Loans received \| $								80,000,000.0	$ 60,000,000.0
VLA15 [member]
IfrsStatementLineItems [Line Items]
Upfront Payment			€ 116,900,000
Negative revenue					36,100,000
VLA15 [member] \| United States of America, Dollars
IfrsStatementLineItems [Line Items]
Upfront Payment \| $				$ 130,000,000
Additional Milestones \| $											$ 100,000,000
Development and early commercialization milestones \| $											168,000,000
Phase 3 study milestone \| $											$ 25,000,000
IXIARO [member]
IfrsStatementLineItems [Line Items]
Contract liabilities \| $								$ 5,400,000	$ 5,400,000
IXIARO [member] \| US Government Department of Defense [member] \| Base Year [member]
IfrsStatementLineItems [Line Items]
Revenue from sale of goods \| $	$ 53,000,000
Number of doses \| Number	370,000
IXIARO [member] \| US Government Department of Defense [member] \| First Option Year [member]
IfrsStatementLineItems [Line Items]
Revenue from sale of goods \| $	$ 28,800,000
Number of doses \| Number	200,000
IXIARO [member] \| US Government Department of Defense [member] \| Second Option Year [member]
IfrsStatementLineItems [Line Items]
Revenue from sale of goods \| $	$ 36,000,000
Number of doses \| Number	250,000
European Commission [member]
IfrsStatementLineItems [Line Items]
Number of VLA2001 Doses under Original Advance Purchase Agreement \| Number		60,000,000
Contract liabilities					116,600,000		116,900,000
European Commission 2022 [member]
IfrsStatementLineItems [Line Items]
Number of VLA2001 Doses under Original Advance Purchase Agreement \| Number		24,300,000
European Commission 2023 [member]
IfrsStatementLineItems [Line Items]
Number of VLA2001 Doses under Original Advance Purchase Agreement \| Number		35,700,000
UK Supply Agreement [member]
IfrsStatementLineItems [Line Items]
Supply agreement revenue					89,400,000
Refund liabilities							166,900,000
Refund liabilities non current							77,300,000
CAPEX Obilgation [member]
IfrsStatementLineItems [Line Items]
Refund liabilities					81,900,000
Pfizer Inc. [member]
IfrsStatementLineItems [Line Items]
Refund liabilities					118,400,000		79,600,000
Other revenue							14,300,000
Non-current assets					€ 3,000,000.0		3,000,000.0
Percentage of shared development costs funding					40.00%			40.00%
Initial agreement percentage of shared development costs funding.					30.00%			30.00%
Refund liabilities non current					€ 59,800,000		€ 75,200,000
Investment in share capital					€ 90,500,000
Percentage of share capital investment					8.10%			8.10%
Investment price per share \| € / shares					€ 9.49
Pfizer Inc. [member] \| Bottom of range [member]
IfrsStatementLineItems [Line Items]
Percentage of tiered royalties					14.00%			14.00%
Percentage of royalties initial agreement					19.00%			19.00%
Pfizer Inc. [member] \| Top of range [member]
IfrsStatementLineItems [Line Items]
Percentage of tiered royalties					22.00%			22.00%
Pfizer Inc. [member] \| United States of America, Dollars
IfrsStatementLineItems [Line Items]
Investment in share capital \| $								$ 95,000,000

Trade receivables (Tables)

6 Months Ended

Jun. 30, 2022

Trade Receivables

Trade receivables include the following:

	June 30,			December 31,
€ in thousand	2022			2021
Trade receivables		16,253			44,030
Less: loss allowance of receivables		(2	)		(17	)
Trade receivables, net		16,251			44,013

Provisions for employee commitments (Details) - EUR (€) € in Thousands	Jun. 30, 2022	Dec. 31, 2021
Employer contribution costs on share-based compensation plans	€ 7,050	€ 26,520
Phantom shares	4,977	14,267
Retirement termination benefits	297	422
Balance at June 30	12,324	41,210
Less non-current portion	(2,302)	(8,308)
Current portion	€ 10,022	€ 32,901

Segment reporting (Tables)

6 Months Ended

Jun. 30, 2022

Schedule of income statement by segment

Income statement by segment for the six months ended June 30, 2021:

Schedule of income statement by segment

€ in thousand	Commercialized products			COVID			Vaccine candidates			Technologies and services			Corporate Overhead			Total
Product sales		31,762			—			—			—			—			31,762
Other revenues		10			—			1,849			13,880			—			15,740
Revenues		31,772			—			1,849			13,880			—			47,502
Cost of goods and services		(19,326	)		(4,156	)		—			(11,295	)		—			(34,778	)
Research and development expenses		(878	)		(46,105	)		(29,513	)		(2,241	)		—			(78,737	)
Marketing and distribution expenses		(7,086	)		(444	)		(2,037	)		(75	)		—			(9,643	)
General and administrative expenses		(2,519	)		(9,438	)		(3,256	)		(2,194	)		(3,498	)		(20,904	)
Other income and expenses, net		2,126			4,690			2,952			900			(279	)		10,389
Operating income/(loss)		4,089			(55,454	)		(30,005	)		(1,025	)		(3,776	)		(86,172	)

Income statement by segment for the six months ended June 30, 2022:

€ in thousand	Commercialized products			COVID			Vaccine candidates			Technologies and services			Corporate Overhead			Total
Product sales		29,537			3,798			—			—			—			33,335
Other revenues		15			89,383			956			(30,465	)		—			59,889
Revenues		29,552			93,181			956			(30,465	)		—			93,224
Cost of goods and services		(12,296	)		(154,883	)		—			(4,301	)		—			(171,479	)
Research and development expenses		(406	)		(44,223	)		(6,702	)		(551	)		—			(51,883	)
Marketing and distribution expenses		(4,156	)		(1,483	)		(2,182	)		(16	)		—			(7,837	)
General and administrative expenses		(3,236	)		(8,359	)		(1,759	)		(924	)		(1,752	)		(16,031	)
Other income and expenses, net		110			5,099			1,365			381			(3,359	)		3,597
Operating income/(loss)		9,568			(110,667	)		(8,322	)		(35,876	)		(5,111	)		(150,410	)

Revenue from contracts with customer by geographical segment

Revenue from contracts with customer by geographical segment

Six months ended June 30, 2021 € in thousand	Commercialized products		COVID		Vaccine candidates		Technologies and services		Total
Canada		2,006		—		—		—		2,006
United States		23,589		—		—		5,781		29,370
United Kingdom		901		—		—		—		901
Austria		1,074		—		—		40		1,114
Nordics¹		—		—		—		15		15
Germany		3,006		—		—		4,126		7,131
Other Europe		1,181		—		—		3,001		4,182
Other markets		15		—		1,849		466		2,330
Revenues from contracts with customers		31,772		—		1,849		13,429		47,050

Six months ended June 30, 2022 € in thousand	Commercialized products		COVID		Vaccine candidates		Technologies and services			Total
Canada		6,683		—		—		—			6,683
United States		4,632		—		—		(36,073	)		(31,442	)
United Kingdom		5,523		89,383		—		1,025			95,931
Austria		3,744		—		—		2,410			6,154
Nordics¹		2,535		—		—		—			2,535
Germany		2,177		—		—		20			2,197
Other Europe		4,119		—		—		1,357			5,476
Other markets		139		3,798		956		431			5,325
Revenues from contracts with customers		29,552		93,181		956		(30,830	)		92,859

Includes Denmark, Finland, Norway and Sweden

Unaudited Interim Condensed Consolidated Statements of Cash Flows - EUR (€) € in Thousands	6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021
CASH FLOWS FROM OPERATING ACTIVITIES
Loss for the period	€ (171,493)	€ (86,399)
Adjustments for non-cash transactions	5,673	17,003
Changes in non-current operating assets and liabilities	(92,844)	8,341
Changes in working capital	159,254	146,614
Cash generated from/(used in) operations	(99,410)	85,560
Income tax paid	(818)	(1,313)
Net cash generated from/(used in) operating activities	(100,228)	84,247
CASH FLOWS FROM INVESTING ACTIVITIES
Purchases of property, plant and equipment	(15,952)	(39,173)
Purchases of intangible assets	(76)	(761)
Interest received	35	33
Net cash used in investing activities	(15,994)	(39,902)
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from issuance of common stock, net of costs of equity transactions	94,308	85,177
Disposal/(Purchase) of treasury shares		209
Proceeds from borrowings, net of transaction costs	18,074
Repayment of borrowings	(1,793)	(1,764)
Payment of lease liabilities	(1,529)	(1,161)
Interest paid	(4,054)	(3,718)
Net cash generated from financing activities	105,006	78,743
Net change in cash and cash equivalents	(11,216)	123,088
Cash and cash equivalents at beginning of the period, excluding restricted cash	346,642	204,394
Exchange gains/(losses) on cash	751	2,242
Restricted cash	48	42
Cash and cash equivalents at end of the period	€ 336,225	€ 329,766

Schedule of rendering of services (Details) - EUR (€) € in Thousands	6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021
Provision of services:	€ 37	€ 47
Operating activities	1,099	73
Provision of services	€ 1,136	€ 120

Schedule of disaggregated revenue information (Details) - EUR (€) € in Thousands	6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021
IfrsStatementLineItems [Line Items]
Revenue from contracts with customers	€ 92,859	€ 47,050
Miscellaneous revenues	365	451
Revenue	93,224	47,502
Commercialized products [member]
IfrsStatementLineItems [Line Items]
Revenue from contracts with customers	29,552	31,772
Revenue	29,552	31,772
COVID [member]
IfrsStatementLineItems [Line Items]
Revenue from contracts with customers	93,181
Revenue	93,181
Vaccine candidates [member]
IfrsStatementLineItems [Line Items]
Revenue from contracts with customers	956	1,849
Revenue	956	1,849
Technologies and services [member]
IfrsStatementLineItems [Line Items]
Revenue from contracts with customers	(30,830)	13,429
Miscellaneous revenues	365	451
Revenue	€ (30,465)	€ 13,880

- Definition

+ References

+ Details

Schedule of type of goods or service (Details) - EUR (€) € in Thousands	6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021
IfrsStatementLineItems [Line Items]
Revenue from contracts with customers	€ 92,859	€ 47,050
IXIARO [member]
IfrsStatementLineItems [Line Items]
Revenue from contracts with customers	12,283	25,394
DUKORAL [member]
IfrsStatementLineItems [Line Items]
Revenue from contracts with customers	5,766	428
Third party products [member]
IfrsStatementLineItems [Line Items]
Revenue from contracts with customers	11,503	5,950
Lyme VLA15 [member]
IfrsStatementLineItems [Line Items]
Revenue from contracts with customers	(36,107)	5,616
Chikungunya VLA1553 [member]
IfrsStatementLineItems [Line Items]
Revenue from contracts with customers	956	1,849
Services related to clinical trial material [member]
IfrsStatementLineItems [Line Items]
Revenue from contracts with customers	2,490	5,727
Others [member]
IfrsStatementLineItems [Line Items]
Revenue from contracts with customers	2,786	2,085
COVID VLA2001 [member]
IfrsStatementLineItems [Line Items]
Revenue from contracts with customers	93,181
Commercialized products [member]
IfrsStatementLineItems [Line Items]
Revenue from contracts with customers	29,552	31,772
Commercialized products [member] \| IXIARO [member]
IfrsStatementLineItems [Line Items]
Revenue from contracts with customers	12,283	25,394
Commercialized products [member] \| DUKORAL [member]
IfrsStatementLineItems [Line Items]
Revenue from contracts with customers	5,766	428
Commercialized products [member] \| Third party products [member]
IfrsStatementLineItems [Line Items]
Revenue from contracts with customers	11,503	5,950
Technologies and services [member]
IfrsStatementLineItems [Line Items]
Revenue from contracts with customers	(30,830)	13,429
Technologies and services [member] \| Lyme VLA15 [member]
IfrsStatementLineItems [Line Items]
Revenue from contracts with customers	(36,107)	5,616
Technologies and services [member] \| Services related to clinical trial material [member]
IfrsStatementLineItems [Line Items]
Revenue from contracts with customers	2,490	5,727
Technologies and services [member] \| Others [member]
IfrsStatementLineItems [Line Items]
Revenue from contracts with customers	2,786	2,085
Vaccine candidates [member]
IfrsStatementLineItems [Line Items]
Revenue from contracts with customers	956	1,849
Vaccine candidates [member] \| Chikungunya VLA1553 [member]
IfrsStatementLineItems [Line Items]
Revenue from contracts with customers	956	1,849
COVID [member]
IfrsStatementLineItems [Line Items]
Revenue from contracts with customers	93,181
COVID [member] \| COVID VLA2001 [member]
IfrsStatementLineItems [Line Items]
Revenue from contracts with customers	€ 93,181

Operating expenses

6 Months Ended

Jun. 30, 2022

Operating expenses

Operating expenses

Schedule of operating expenses


	Six months ended June 30,
€ in thousand	2022			2021
Cost of services and change in inventory		(102,476	)		(2,940	)
Consulting and other purchased services²		(87,171	)		(76,213	)
Employee benefit expense other than share-based compensation³		(23,089	)		(35,955	)
Share-based compensation expense		5,480			(3,653	)
Depreciation and amortization and impairment		(14,440	)		(6,101	)
Building and energy costs		(7,050	)		(5,286	)
Supply, office and IT-costs		(6,134	)		(3,308	)
Raw materials and consumables used		(5,536	)		(5,371	)
Advertising costs		(2,740	)		(1,318	)
License fees and royalties		(1,650	)		(2,490	)
Travel and transportation costs		(849	)		(126	)
Warehousing and distribution costs		(686	)		(745	)
Other expenses		(889	)		(554	)
Operating expenses		(247,230	)		(144,062	)

In the six months ended June 30, 2022, Cost of services and change in inventory included effects from the significant changes to the ordered volumes and the expected future demand for VLA2001, in particular a write-down of inventory of €83.5 million as well as a €26.9 million provision related to expected settlement costs in connection with judicial or contractual claims and €14.1 million of write-downs of advanced payments. Refer to note 13 for more details. Consulting and other purchased services included €71.1 million (June 30, 2021: €33.4 million) in expenses related research and development as well as external manufacturing costs for VLA2001. Depreciation and amortization and impairment included €3.3 million of impairment (refer to note 11.1 for more details).

Intangible assets

6 Months Ended

Jun. 30, 2022

Intangible assets

Intangible assets

As at June 30, 2022 and December 31, 2021, there were no acquired research and development technology assets with a definite useful life which are not yet amortized.

Significant intangible assets (included in acquired Research & Development technology and projects as well as in the development costs) with definite useful life are comprised primarily of the already commercialized vaccine against Japanese encephalitis (IXIARO) with acquisition costs amounting to €78.8 million and a net book value amounting to €29.1 million (December 31, 2021: €30.6 million).

For impairment test, see Note 11.

Leases (right of use assets and lease liabilities)

6 Months Ended

Jun. 30, 2022

Leases (right of use assets and lease liabilities)

Leases (right of use assets and lease liabilities)

Right of use assets decreased from €48.3 million as at December 31, 2021 to €46.8 million as at June 30, 2022, mainly due to amortization (€1.5 million) and exchange rate differences (€0.9 million), partly offset by positive impact from revaluation of lease liabilities (€0.8 million).

Lease liability decreased from €56.8 million as at December 31, 2021 to €54.9 million as at June 30, 2022, mainly due lease payments (€2.0 million) and exchange rate differences (€1.3 million), partly offset by impact from revaluation of lease liabilities (€0.8 million), interest expenses (€0.5 million) and additions (€0.1 million).

Major lease agreements are for the premises in Austria (book value as at June 30, 2022: €23.5 million, December 31, 2021: €24.0 million) and Sweden (book value as at June 30, 2022: €21.1 million, December 31, 2021: €22.1 million).

Schedule of other reserves (Details) - EUR (€)
€ in Thousands

6 Months Ended

Jun. 30, 2022

Jun. 30, 2021

€ 52,512

€ 52,342

(567)

(424)

168

369

1,217

209

Other regulated reserves [member]

52,482

53,344

52,820

^[1]

^[1]

^[1]

^[1]

Accumulated other comprehensive income [member]

52,820

^[1]

(5,146)

(2,474)

(567)

(424)

168

(5,545)

(2,898)

Treasury shares [member]

(645)

(898)

209

(645)

(689)

Share premium [member]

15,000

12,368

369

1,217

15,369

13,585

Other reserves [member]

(9,517)

(9,474)

Other income and expenses, net include the following

€ (9,517)

€ (9,474)

[1]	Regulated non-distributable reserve relating to the merger with Intercell AG

Other assets include the following: (Details) - EUR (€) € in Thousands	Jun. 30, 2022	Dec. 31, 2021
R&D tax credit receivables	€ 40,031	€ 35,390
Tax receivables	8,002	6,145
Prepaid expenses	5,359	5,131
Contract costs	3,010	3,010
Advance payments	2,035	27,375
Consumables and supplies on stock	1,414	1,722
Miscellaneous current assets	570	23
Other non-financial assets	60,422	78,796
Deposits	11,341	11,339
Miscellaneous financial assets	151	183
Other financial assets	11,491	11,522
Other assets	71,913	90,318
Less non-current portion	(17,948)	(19,282)
Current portion	€ 53,965	€ 71,036

Unaudited Interim Condensed Consolidated Statements of Income (Loss) - EUR (€) € in Thousands	6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021
Profit or loss [abstract]
Product sales	€ 33,335	€ 31,762
Other revenues	59,889	15,740
Revenues	93,224	47,502
Cost of goods and services	(171,479)	(34,778)
Research and development expenses	(51,883)	(78,737)
Marketing and distribution expenses	(7,837)	(9,643)
General and administrative expenses	(16,031)	(20,904)
Other income and expenses, net	3,597	10,389
OPERATING LOSS	(150,410)	(86,172)
Finance income	35	228
Finance expenses	(8,199)	(8,431)
Foreign exchange gain/(loss), net	(10,657)	8,735
Result from investments in associates	9	(90)
LOSS BEFORE INCOME TAX	(169,222)	(85,730)
Income tax expense	(2,271)	(668)
LOSS FOR THE PERIOD	€ (171,493)	€ (86,399)
Losses per share for loss for the period attributable to the equity holders of the Company, expressed in € per share
■ basic	€ (1.58)	€ (0.91)
■ diluted	€ (1.58)	€ (0.91)

Other income and expenses, net (Tables)

6 Months Ended

Jun. 30, 2022

Other Income And Expenses Net

Other income and expenses, net include the following:


	Six months ended June 30,
€ in thousand	2022			2021
Research and development tax credit		6,770			9,635
Grant income		89			1,145
Profit/(loss) on disposal of fixed assets, net		(46	)		(21	)
Taxes, duties, fees, charges, other than income tax		(227	)		(133	)
Miscellaneous income/(expenses), net		(2,989	)		(237	)
Other income and expenses, net		3,597			10,389

Revenues from contracts with customers (Details Narrative) - EUR (€)	6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021
IfrsStatementLineItems [Line Items]
Product sales	€ 33,335,000	€ 31,762,000
Technologies and services [member]
IfrsStatementLineItems [Line Items]
Product sales
United States [member] \| Technologies and services [member]
IfrsStatementLineItems [Line Items]
Negative Revenue	36,100,000
UK Supply Agreement [member]
IfrsStatementLineItems [Line Items]
Supply agreement revenue	89,400,000
Kingdom of Bahrain [member]
IfrsStatementLineItems [Line Items]
Product sales	€ 3,800,000

Write-down provisions related to the inventory categories as follows: (Details) - EUR (€) € in Thousands	Jun. 30, 2022	Dec. 31, 2021
Raw materials	€ 71,325	€ 29,751
Work in progress	62,452	15,096
Finished goods	4,317	3,974
Purchased goods (third party products)	361	342
Total write-down provision	€ 138,455	€ 49,162

Schedule of operating expenses (Details) - EUR (€)
€ in Thousands

6 Months Ended

12 Months Ended

Jun. 30, 2022

Jun. 30, 2021

Dec. 31, 2021

Employee benefit other than share-based compensation income

€ (247,230)

€ (144,062)

19,500

Employee benefit other than share-based compensation expense

€ 5,000

Cost of services and change in inventory [member]

Consulting and other purchased services [member]

(102,476)

(2,940)

Employee eenefit expense other than share based compensation [member]

^[1]

(87,171)

(76,213)

Share based compensation expense [member]

^[1]

(23,089)

(35,955)

Depreciation and amortization and impairment [member]

5,480

(3,653)

Building and energy costs [member]

(14,440)

(6,101)

Supply, office and IT costs [member]

(7,050)

(5,286)

Raw material sand consumables used [member]

(6,134)

(3,308)

Advertising costs [member]

(5,536)

(5,371)

License fees and royalties [member]

(2,740)

(1,318)

Travel and transportation costs [member]

(1,650)

(2,490)

Warehousing and distribution costs [member]

(849)

(126)

(686)

(745)

Other expenses [member]