Bavarian Nordic Secures Major Vaccine Contract with the U.S.
Bavarian Nordic Secures Significant Vaccine Contract
Recently, Bavarian Nordic A/S (OMX: BAVA) announced that it has successfully exercised contract options with the U.S. government amounting to an impressive USD 143.6 million. This substantial funding will facilitate the manufacturing and supply of freeze-dried JYNNEOS smallpox vaccines, scheduled for delivery in 2026.
Understanding the Contract Options
The contract options enable the conversion of bulk vaccine into freeze-dried formulations that meet the growing demands of U.S. public health initiatives. With these options now in play, Bavarian Nordic will receive supplemental payments linked to the demonstration of an extended shelf-life, ensuring that the vaccines remain potent and effective for longer periods.
Finances and Projections
Bavarian Nordic’s financial outlook for 2025 has been confirmed, with total revenue expectations set between DKK 5,700-6,700 million and an anticipated EBITDA margin of 26-30%. Specifically, for the Public Preparedness segment, the revenue forecast remains between DKK 3,000-4,000 million, illustrating a robust growth trajectory with DKK 2,650 million already secured.
Leadership Insights
Paul Chaplin, President & CEO of Bavarian Nordic, expressed enthusiasm regarding the U.S. government’s continued support for health security: "The recent approval of our freeze-dried formulation is pivotal for expanding the long-term availability of smallpox and mpox countermeasures, thereby safeguarding U.S. citizens against these serious health threats."
Long-term Collaboration with the U.S. Government
Bavarian Nordic has partnered with the U.S. government since 2003, focusing on the development, manufacturing, and supply of unique non-replicating smallpox vaccines. This collaboration aims to protect vulnerable populations, particularly those with immune deficiencies susceptible to adverse reactions from traditional vaccines.
Product Development and Project BioShield
JYNNEOS, which received FDA approval in 2019, is notable for being the first smallpox vaccine produced under Project BioShield, a U.S. initiative aimed at accelerating the development and accessibility of medical countermeasures for diverse threats. This project represents a commitment to safeguarding public health through innovation and collaboration.
Supply History and Recent Responses
Since 2010, Bavarian Nordic has provided the liquid-frozen version of JYNNEOS for U.S. stockpiling. The recent mpox outbreak in 2022-2023 highlighted the need for robust vaccine supplies, prompting the government to prioritize the freeze-dried formulation.
Advantages of the Freeze-Dried Formulation
Approved by the FDA only recently, the freeze-dried version of JYNNEOS offers considerable advantages over its liquid-frozen counterpart, specifically in transportation and storage scenarios. These attributes are critical for effective long-term stockpiling and rapid response to any health emergencies.
Funding and Support
The advancements in the freeze-dried vaccine formulation have been supported by federal funds through various U.S. health authorities, underscoring the strategic investments made to enhance public health preparedness.
About Bavarian Nordic
As a global vaccine developer, Bavarian Nordic's main goal is to improve health standards and save lives through innovative vaccination solutions. The company is recognized for its effective smallpox and mpox vaccines, showcasing a strong commitment to public health and safety. For additional information, explore their website at www.bavarian-nordic.com.
Frequently Asked Questions
What is the total value of the contract options secured by Bavarian Nordic?
The total value of the exercised contract options is USD 143.6 million.
When are the deliveries of the freeze-dried JYNNEOS vaccines planned?
Deliveries under the new contract options are anticipated for 2026.
What is the expected revenue for Bavarian Nordic in 2025?
Bavarian Nordic expects total revenues between DKK 5,700-6,700 million for 2025.
What type of vaccine is JYNNEOS?
JYNNEOS is a non-replicating smallpox vaccine that is safe for populations at higher risk, including those with immune system challenges.
When was JYNNEOS approved by the FDA?
JYNNEOS received FDA approval in 2019.
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