Bavarian Nordic up 13% after results, up 51% in 2024 | Financial Markets

Shares of Danish laboratory Bavarian Nordic, one of the main companies with an authorized smallpox vaccine, rose 13.15% on Thursday on the Copenhagen Stock Exchange after it announced a contract to supply its smallpox/pox vaccine “to an undisclosed European country” and published first-half results.

The Scandinavian company said the contract included the delivery of 440,000 doses of its smallpox vaccine MVA-BN to a European country not specified by the company, which stressed that the order was intended to be part of the 2024 guidance and would not impact the company’s remaining capacity to produce the smallpox vaccine in 2024/25. In this sense, Bavarian Nordic clarified that all vaccines under this contract will be delivered in 2024, bringing the total value of the contracts awarded to around DKK 3 billion (EUR 402 million), which represents the upper limit of the revenue forecast for the public preparedness business in 2024.

The company thus confirmed its new 2024 guidance at the upper end of the range, with consolidated revenue of approximately DKK 5.3 billion (EUR 710 million) and a gross operating result (Ebitda) of approximately DKK 1.35 billion (EUR 181 million).

The Danish company highlighted that in August it had received a new order from the US government worth $156.8 million (€141 million), mainly for the production of an additional batch of Jynneos’ smallpox vaccine, as well as smallpox. The European Health Emergency Preparedness and Response Authority (HERA) has ordered an additional 175,420 doses of smallpox vaccine for donation to the Africa Centres for Disease Control and Prevention (CDC).

On the other hand, Bavarian Nordic reported this Thursday that it had a net profit of DKK 146.6 million (EUR 20 million) in the first half of the year, down 84% from the year-earlier figure, including a 51.5% decline in the second quarter to DKK 261 million (EUR 35 million).

In turn, the laboratory’s sales volume up to June amounted to DKK 2,259 million (EUR 302 million), down 30.2%, with a decrease of 28% in the second quarter, to DKK 1,427.5 million (EUR 191 million).

“Unfortunately, mpox is once again in the global news due to record numbers of cases reported in Africa,” said Paul Chaplin, president and CEO of Bavarian Nordic, stressing that the company is “working closely with all stakeholders to ensure equal access to our smallpox vaccine.” “We are working with the WHO on regulatory approval to ensure access in all countries, while also pursuing approval for use in adolescents and conducting clinical trials in Africa to further expand use in children,” he explained.

Bavarian Nordic shares have pared their gains on Thursday’s session to just over 11%, while since August 13, before the World Health Organization (WHO) declared a public health emergency of concern. This is the highest level of international alert due to the outbreak in Africa of the disease formerly known as monkeypox, it has overvalued by more than 40% and 51% since the beginning of the year.

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