In continuation of previous Stock Exchange Announcement no. 14-06 of 11 August 2006, there is still uncertainty on the exact timing of decision on the award of the RFP-III contract from the U.S. Government. Consequently, Bavarian Nordic has, as previously announced initiated a cost savings programmeto ensure that the consumption of resources is in line with operating activities and cash flow.
Until Bavarian Nordic is awarded the expected RFP-III order, the capacity is reduced to a required minimum,securing that all core competences remain intact and that a quick upscaling is possible when needed. The capacity reduction involves an extensive rationalization of production- and quality organisation. Savings within R&D can result in temporary delays in development programmes. Also certain administrative functions will be merged and rationalized.
It is the goal of the company that these initiatives will contribute to securing a solid cash preparedness.
The activities involve amongst others a large staff reduction within the company.
The financial expecations for the year will not be affected by these decisions.
