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Bavarian Nordic – Interim Financial Report for the Period 1 January to 30 September 2012

  • Continued, steady improvements in the manufacturing efficiency of IMVAMUNE® smallpox vaccines further increases profitability in the infectious disease division
  • Group reports a nine-month positive operating profit
  • Raises full year group financial expectations and year-end cash preparedness

KVISTGAARD, Denmark, November 13, 2012 - Bavarian Nordic A/S (OMX: BAVA) today publishes its interim financial results for the first nine months of 2012. Revenue for the period was DKK 750 million (2011: DKK 155 million) and the result before tax was a profit of DKK 17 million (2011: DKK 333 million loss). For the third quarter ending 30 September 2012, revenue was DKK 304 million (2011: DKK 97 million) and the result before tax was DKK 30 million (2011: DKK 58 million loss). As of 30 September 2012 the cash preparedness was DKK 666 million, including un-utilized credit lines of DKK 120 million.

The infectious disease division has further improved the efficiency in the manufacturing of IMVAMUNE® and Bavarian Nordic now expects to deliver more than 8 million doses to the U.S. Strategic National Stockpile in 2012, where it had previously expected to deliver 7.5 million doses. Also, as result of the improved efficiency, the group sees lower production costs. In addition, lower research and development costs will contribute to an improved financial result for the year as well as improved cash preparedness at year-end. Consequently, the company again raises its financial expectations for the year with revenues increasing from approximately DKK 900 million to approximately DKK 975 million and the result before tax improving by DKK 80 million from a loss of approximately DKK 150 million to a loss of approximately DKK 70 million. EBIT in the infectious disease division is raised to approximately DKK 300 million and EBIT in the cancer vaccine division is raised to a DKK 250 million loss. Also, the company raises its expectations for the year-end cash preparedness from approximately DKK 400 million to approximately DKK 525 million.

Significant achievements in the third quarter and up to the reporting date

  • 2.6 million doses of IMVAMUNE® smallpox vaccine delivered to the U.S. Strategic National Stockpile during third quarter
  • Continued, steady improvements in the IMVAMUNE®manufacturing efficiency throughout the period
  • Smallpox vaccine contract (RFP-3) further expanded by USD 5 million in September by the U.S. Government
  • U.S. Government has expanded the population eligible to receive IMVAMUNE® in an emergency, thus significantly increasing the future business potential
  • New contract awarded by the U.S. Government to develop a veterinary vaccine against Foot-and-mouth disease further broadens the use of MVA-BN® as technology platform for the development of biological countermeasures
  • Preliminary Phase 2 data for CV-301 presented at the ESMO 2012 Congress shows promise in metastatic breast cancer

Anders Hedegaard, President & CEO commented: "We are very pleased to report a continued strong performance in our infectious disease division with the manufacturing and deliveries of IMVAMUNE® smallpox vaccines for the U.S. Strategic National Stockpile again exceeding our targets. The division has further improved its profitability, contributing to an improved financial result for the group. The U.S. Government's recent expansions of our smallpox vaccine contract coupled with additional new contract awards that broaden the scope of our technology into new disease areas strengthen our confidence in a sustained partnership with the U.S. Government to address their requirements for biological countermeasures. In our cancer vaccine division we remain focused on the ongoing PROSPECT Phase 3 study in metastatic prostate cancer to strengthen enrollment in the study. "

Selected, anticipated milestones

  • Deliver more than 8 million doses IMVAMUNE® to the U.S. Strategic National Stockpile (2012)
  • New IMVAMUNE® order from U.S. Government (2013)
  • Report final Phase 2 data for CV-301 in breast cancer (2012)
  • Expand CRADA with NCI for new cancer targets (2013)
  • Initiate Phase 3 trial of IMVAMUNE® (2013)
  • Initiate new Phase 2 study for the freeze-dried IMVAMUNE®(2013)
  • Receive approval of MAA in Canada for IMVAMUNE® (2013)
  • Receive approval of MAA in EU for IMVANEX® (2013)

Conference call

The Company will host a conference call today at 2 pm CET (8 am EST). President and CEO, Anders Hedegaard will present the interim results. The accompanying presentation is available on the company's website: /q3. Additional participants from Bavarian Nordic are Paul Chaplin, Executive Vice President and Division President Infectious Diseases, Reiner Laus, Executive Vice President and Division President Cancer Vaccines, Ole Larsen, Executive Vice President and CFO and Rolf Sass Sørensen, Vice President Investor Relations. Dial-in numbers for the conference call are:  UK: +44 (0)20 7162 0077. USA: +1 334 323 6201. The participant code is 924959. For additional countries and further details please visit /q3.