|
Bavarian Nordic A/S announced today that it will initiate a rights offering, with pre-emptive privileges for existing shareholders, to generate approximately DKK 300 million in new net capital. The revenue will be used for investments to extend the production area as well as to further strengthen the company’s product development activities; specifically to accelerate the company’s development programmes in smallpox, HIV and cancer in the USA and Europe. The rights offering is expected to be carried out during the early summer of 2005.
In addition, the company has also determined that its overall capital preparedness should be strengthened because of the planned expansion of the research, production and marketing functions due to occur in the coming period. Bavarian Nordic’s capital preparedness was approximately DKK 165 million at the beginning of January 2005, which includes an estimated DKK 70 million in leasing arrangements and property loans on the facilities at the Kvistgård site.
Excluding the effect of Bavarian Nordic’s share of the upcoming order from the US government for up to 60 million doses of smallpox vaccine (IMVAMUNE™), Bavarian Nordic projects a revenue of approximately DKK 450-500 million in 2005. Revenue will come from among other sources, sales of Elstree-BN as well as income from the ongoing contracts (RFP-l and RFP-ll) with the US government on the development of IMVAMUNE™ as a safe smallpox vaccine.
These funds will also be used to strengthen the organisation in a number of areas, particularly the acceleration of product development activities in the smallpox, HIV and cancer vaccine programmes. Correspondingly, approximately 85 employees will be hired in 2005, primarily in the production, Quality Assurance/Quality Control and research and development departments. As a result of these planned increased in costs, the company does not project that the expected revenue for the year will be realised in the bottom line, which is expected to be a net result of DKK 0 for 2005.
Peter Wulff, President & CEO, commented, “Bavarian Nordic’s financial requirements have increased in line with our new growth plans for the company. We want to move quickly forward with research and development activities at BN ImmunoTherapeutics in the Palo Alto area of California. In addition, due to the increased interest in IMVAMUNE™ from other governments, we are also actively expanding our international marketing function and intend to invest in a vaccine filling line to ensure security of supply for these governmental customers. We also believe it is equally important and timely to strengthen our capital base, so that we are able to take advantage of international investment and collaboration opportunities”.
Copenhagen, 14 February 2005
Asger Aamund, Chairman of the Board
|
