EANS-News: Valneva SE announces the sale of its Clinical Manufacturing Operations (CMO) in France to Biological E

--------------------------------------------------------------------------------
Corporate news transmitted by euro adhoc. The issuer/originator is solely
responsible for the content of this announcement.
--------------------------------------------------------------------------------

Company Information

Lyon (euro adhoc) - Valneva SE announces the sale of its Clinical
Manufacturing Operations (CMO) in France to Biological E

Next step in broadening an excellent strategic partnership

Lyon (France), Hyderabad (India) 7th June, 2013 - Valneva SE
(Valneva), a European biotech company, today announced the signing of
a binding term sheet to sell its Clinical Manufacturing Operations
(CMO) in Nantes to Biological E, a leading Indian biopharmaceutical
company.

The sale of this unit, which is dedicated to the manufacturing of
clinical trial materials, is part of Valneva's strategy to realize
cost synergies of EUR 5 to 6 million annually following the merger of
Intercell AG and Vivalis SA to create Valneva.

The divestment of the CMO facility is expected to contribute up to
EUR 3 million cost savings to the annual merger-synergies. In
addition, Valneva will receive an undisclosed purchase price,
exceeding the current book value of the facility.

Valneva and Biological E established a first partnership in 2005 for
the development and commercialization of a novel Japanese
Encephalitis vaccine for endemic regions, based on Valneva's JEV
technology. The vaccine, which was successfully developed under this
partnership, is being commercialized in India under the trade-name
JEEV® and further territory expansions in the JE-endemic markets are
planned. The CMO facility in Nantes will not be related to the JEV
vaccine program.

Valneva and Biological E are also in discussions to potentially
extend their strategic partnership into new vaccine development
programs based on Valneva's EB66® manufacturing platform. The EB66®
cell line is an advanced system for the production of a wide variety
of human and veterinary viral and therapeutic vaccines. Valneva
remains the owner of the EB66® cell line and will continue to license
it for human and veterinary product development to pharmaceutical and
biotech companies and to propose EB66® process development services.

Thomas Lingelbach, President and Chief Executive Officer and Franck
Grimaud, President and Chief Business Officer of Valneva, commented:
"This agreement demonstrates that Valneva's merger strategy to become
a leading sustainable biotech company in antibodies and vaccines, is
on track. We are pleased to broaden our excellent strategic
partnership with Biological E with this transaction and believe that
it will create additional opportunities for our two companies going
forward."

Further inquiry note:
Valneva SE
Corporate Communications
Tel.: +43-1-20620-1222/-1116
Email: communications@valneva.com

end of announcement euro adhoc
--------------------------------------------------------------------------------

company: Valneva SE
Gerland Plaza Techsud, 70, rue Saint Jean de Dieu
F-69007 Lyon
phone: +33 4 78 76 61 01
mail: communications@valneva.com
WWW: www.valneva.com
sector: Biotechnology
ISIN: FR0004056851
indexes: ATX Prime
stockmarkets: regulated dealing: Euronext Paris, regulated dealing/prime
standard: Wien
language: English