Bavarian Nordic A/S announced today the signing of a supply contract with an undisclosed country for the Company’s smallpox vaccine with the aim to ensure sufficient supply to meet the country’s requirements for vaccinating individuals at risk for monkeypox in the short to medium term.
The vaccine is approved for use against monkeypox by the U.S. Food and Drug Administration and Health Canada as the only vaccine having obtained regulatory approval for this indication in any territory.
While the terms of the agreement remain undisclosed, the order will positively impact the Company’s financial guidance for 2022 as explained below.
Bavarian Nordic is currently in dialogue with several other governments concerning supply of the vaccine to mitigate the current monkeypox outbreak and to explore opportunities for longer term collaboration to build stockpiles for future preparedness. Officially, monkeypox cases have been reported in more than 15 countries as of to-date with numbers continuing to rise. In this unprecedented situation, the Company is making every possible effort to ensure sufficient availability of vaccines to meet the current demand.
Paul Chaplin, President and CEO of Bavarian Nordic said:
The current monkeypox outbreak, which is now affecting countries globally, calls for a swift and coordinated response from health authorities, and we are pleased to assist another country with supply of vaccines to fulfil a growing demand. Building on our vast experience and relations with governments in the procurement of vaccines for their national preparedness, we have rapidly adapted to this unprecedented situation and are working closely with other governments to make vaccines available as fast as possible to mitigate the situation.
As a consequence of this order, and improved exchange USD/DKK rates among others, Bavarian Nordic raises its expectations for the financial result for 2022 with revenue now expected to be between DKK 1,300 and 1,500 million (previously between DKK 1,100 and 1,400 million), EBITDA expectations raised to a loss between DKK 1,000 and 1,200 million (previously a loss between DKK 1,000 and 1,300 million) and cash and cash equivalents at year-end now between DKK 1,100 and 1,200 million (previously between DKK 1,000 and 1,200 million). The guidance reflects the significant investments in research and development being made in 2022 to advance the Company’s two lead product candidates: a vaccine against respiratory syncytial virus (RSV) and a booster vaccine against COVID-19 into Phase 3 clinical trials.