The European Commission said that no final decision had been made about the possible termination of a contract with Valneva SE (NASDAQ: VALN) to supply its COVID-19 vaccine to the European Union.
Earlier today, Valneva said it received a notice of intent from the Commission to terminate the contract.
The statement triggered a sell-off of Valneva's shares.
EU Commission spokesman Stefan de Keersmaecker confirmed the EU executive had communicated to Valneva its intention to terminate the contract but said the final decision would only be made after consulting with Valneva.
He told a regular news briefing that the notice had been sent after an agreement with EU governments but said the notice was only the start of a process, Reuters reported.
Valneva can now propose alternative solutions. Only after that would the EU decide whether to terminate the contract, the spokesman said, adding that the EU "will consider any remedial solution the company may propose."
Price Action: VALN shares are down 19.9% at $19.96 during the market session on the last check Monday.
See more from Benzinga
Don't miss real-time alerts on your stocks - join Benzinga Pro for free! Try the tool that will help you invest smarter, faster, and better.
© 2022 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.