Valneva Shares Drop 3.7% Amid Profit-Taking
Valneva's stock closed down 3.7% at 4.2680 euros on Thursday, January 15, in a technical correction context, with an RSI at 83 indicating an overbought zone after several bullish sessions. However, the momentum remains driven by the anticipation of Phase 3 results of the Lyme disease vaccine in the first half of 2026.
Technical Retracement Following Recent Gains
Valneva's shares fell 3.7% this Thursday to close at 4.2680 euros, after finishing the previous day at 4.43 euros. This correction occurs in a context of profit-taking, following several sessions of gains driven by investor optimism ahead of the J.P. Morgan Healthcare Conference in San Francisco held from January 12 to 14. Trading volumes remained moderate with 0.46% of the capital traded during the session, indicating a classic technical pause after a sustained upward movement. From a technical standpoint, the RSI stands at 83, well above the overbought threshold of 70, signaling an overheated situation that justifies a temporary pullback in the price. This pullback brings the stock back to its 50-day moving average at 3.85 euros, confirming that the underlying trend remains bullish. The price also remains above its 200-day moving average at 3.52 euros, validating a positive long-term dynamic. The resistance threshold at 4.43 euros, equivalent to the previous day's price, now becomes a key level to reconquer to restart the upward movement, while the support at 3.49 euros remains still distant.
Positive Outlook in Biotechnology Sector
Today's correction is part of an overall favorable environment for biotechnology, with renewed investor interest in the VLA15 vaccine against Lyme disease developed in partnership with Pfizer. On January 6, Stifel bank reiterated its buy recommendation by raising its price target from 9.50 euros to 10 euros, representing a potential upside of 134% from the current price. The analyst is particularly optimistic about the upcoming publication of pivotal Phase 3 results expected in the first half of 2026, estimating that an efficacy between 70% and 80% would be favorably perceived by the market. VLA15 is currently the only vaccine candidate against Lyme disease in advanced clinical development, a pathology transmitted by ticks affecting about 476,000 people annually in the United States and 130,000 in Europe. Stifel estimates that the vaccine's maximum annual sales could reach 1.9 billion euros, given the increasing prevalence of the disease. Meanwhile, Valneva announced on December 31, 2025, the end of its licensing agreement with the Serum Institute of India concerning IXCHIQ, its vaccine against chikungunya, in order to take direct control of the marketing in endemic countries. In the first nine months of 2025, the laboratory reported revenue of 127 million euros, up 8.9% compared to the same period the previous year.
