Bavarian Nordic Secures $156.8 Million from U.S. Government for Expanded Smallpox/Mpox Vaccine Production
Thursday, August 08, 2024
Bavarian Nordic A/S announced it has received a new order worth USD 156.8 million from the Biomedical Advanced Research and Development Authority (BARDA), part of the Administration for Strategic Preparedness and Response within the U.S. Department of Health and Human Services, to produce additional bulk product for JYNNEOS®, the company's smallpox/mpox vaccine.
The bulk product, valued at USD 139.7 million, will be manufactured and invoiced in 2024. This will partly replenish the inventory used to produce vaccines in response to the 2022 mpox outbreak. Replenishment of the bulk inventory is necessary to fulfill the company's existing contract to supply a next-generation, freeze-dried version of the vaccine for U.S. smallpox preparedness.
The contract also includes approximately USD 17 million for additional services from 2025 to 2027, including storage of vaccine doses in the U.S.
“Our smallpox/mpox vaccine is a key component of U.S. biological preparedness, as demonstrated during the 2022 mpox outbreak. JYNNEOS was also the first smallpox vaccine successfully developed under Project BioShield, a program created by the U.S. Congress in 2004 to accelerate the development, procurement, and availability of medical countermeasures against biological, chemical, radiological, and nuclear (CBRN) agents through public-private partnerships. We applaud the U.S. government’s commitment to maintaining robust preparedness and are proud to continue providing vaccines to protect its citizens against current and future public health threats,” said Paul Chaplin, President & CEO of Bavarian Nordic.
While the contract will not affect the company’s overall financial guidance for 2024, it will increase the value of secured contracts in the Public Preparedness business this year from approximately DKK 1,600 million to approximately DKK 2,500 million. A total of DKK 2,700–3,000 million is expected from this business in 2024, driven by a few additional government contracts anticipated later this year.
Revenue for the year also includes approximately DKK 2,100 million from Travel Health vaccines and approximately DKK 200 million from contract work, totaling an expected DKK 5,000-5,300 million. The EBITDA is expected to reach DKK 1,100-1,350 million.
All full-year revenue and earnings estimates are in line with previous guidance.
Source: globenewswire.com
