Bavarian Nordic Awarded Contract from the U.S. Government to Advance the Development of new MVA-BN® based vaccines

KVISTGAARD, Denmark, June 18, 2012 - Bavarian Nordic A/S (OMX: BAVA) today announced that it has received a contract from the National Institute of Allergy and Infectious Diseases (NIAID), part of the National Institutes of Health, valued up to USD 17.9 million over five years. This new contract will support the advanced development of candidate vaccine components and technologies that accelerate the immune response for use in post-event settings following the intentional release of pathogens that are considered a threat to public health.

Under the contract, Bavarian Nordic will evaluate several novel technologies to accelerate and/or enhance the immune response to a combined smallpox and Marburg virus vaccine based on MVA-BN®.Although both diseases are considered priority pathogens by the US government, if successful, the new technologies would have benefits for all MVA-BN®-based vaccines for infectious disease and cancer. Under the 2 year base period of the contract, valued at USD 4.4 million, Bavarian Nordic would evaluate several candidate vaccines in preclinical studies. This may be followed by GMP production and a Phase I clinical trial for the lead candidate that will be performed under several contract options that may be exercised until the end of the contract in 2017.

The contract does not affect the company's expectations for the 2012 full year results.

Anders Hedegaard, President & CEO commented: "This is the first major award the company has received for a recombinant MVA-BN® based vaccine and is a recognition of the huge potential of MVA-BN® as a vaccine vector for infectious diseases and cancer. This contract broadens our collaboration with the US Government and we are excited to explore the opportunity to expand the scope of application for our MVA-BN® technology platform, which we have successfully developed through our contracts with the U.S. Government to develop our IMVAMUNE® smallpox vaccine"