Valneva said revenue in the first three months of 2026 fell nearly 40% to €30.9 million, as the French vaccine maker's shift away from third-party distribution dragged on sales and forced it to cut its full-year outlook.

The company also reported a widened net loss of €32.1 million for the quarter, with operating losses increasing to €23.7 million from €6.0 million a year earlier. Shares in the company were quoted at $2.54, around 34% lower this year and nearly half below their 52-week high, with the stock still trading under its 200-day moving average.

Valneva's core products remained the main source of revenue. Sales of IXIARO/JESPECT for Japanese encephalitis brought in €20.2 million, DUKORAL for cholera and travel diarrhea added €8.6 million, and IXCHIQ contributed €1.6 million. By contrast, revenue from third-party vaccine distribution collapsed to just €0.1 million from €5.8 million in the same quarter last year.

That drop is not an accident. Valneva has been deliberately retreating from the third-party product business and plans to reduce it to less than 5% of total turnover by the end of 2026 or 2027. The restructuring tied to that strategy is expected to cut operating costs by 25% to 35% versus 2025 and reduce the workforce by 10% to 15%.

Valneva said it ended March with €105.3 million in cash and later added another €84 million through a capital raise in April. It lowered full-year 2026 guidance to between €145 million and €160 million in total revenue, a sign that the business will spend the year absorbing the cost of a narrower portfolio while trying to stabilize the top line.

Behind that pressure, the company is still betting on pipeline programs that could change the picture later. Valneva and Pfizer are preparing regulatory submissions for the experimental Lyme disease vaccine LB6V after phase 3 data showed efficacy above 70% in people aged five and older, with no safety concerns flagged. Phase 2 studies for the Shigella vaccine candidate S4V2 are ongoing, and first results are expected by mid-2026. Brazil's health regulator also gave the green light for local production of the company's Chikungunya vaccine.

For now, though, the quarter shows a company in transition: travel vaccine sales are still doing most of the work, while the cost of shrinking an old business line is hitting the results harder than the new products can offset them.