Healthcare Industry News: Bavarian Nordic
News Release - September 20, 2007
Bavarian Nordic - Strengthens Commercial Focus; Pipeline UpdateWASHINGTON, September 20 (HSMN NewsFeed) -- Bavarian Nordic, the Danish-based biopharmaceutical company, announced it will establish a new separate sales and marketing function to strengthen the company's commercial activities and increase marketing efforts on its third-generation smallpox vaccine, IMVAMUNE® as well as future HIV and cancer vaccines. The new commercial affairs function will be headed up by an Executive Vice President who will join the Corporate Management group and refer to Anders Hedegaard, CEO. An appointment is expected before year-end.
Bavarian Nordic sees great potential in the market for IMVAMUNE smallpox vaccine, as evidenced by the recent contract award(i) by the Department of Health and Human Services (HHS) to purchase 20 million doses of the company's vaccine. Bavarian Nordic is currently in negotiations with a number of other countries on the manufacture and delivery of IMVAMUNE, the timing and value of potential contracts is not yet known.
Status on IMVAMUNE smallpox vaccine contract
Under the 5-year contract with HHS, Bavarian Nordic will receive advanced and milestone payments, amounting to USD 150 million based on meeting pre-determined milestones. In 2007, the company expects to receive advanced payments of USD 50 million and two milestone payments (USD 25 million each) for fulfilling milestones within the following areas:
- Build-up of security systems
- Establishment of various procedures and training
- Validation of equipment and processes
- Reporting on the Phase II study in preparation for design of Phase III studies
Vaccine Pipeline Update Program Phase Next milestone IMVAMUNE® II Start of Phase III (2008) (smallpox) HIV nef II Immunogenicity data (Q3, 2007) HIV polytope I/II Immunogenicity data (Q4, 2007) HIV multiantigen Preclinical Start of Phase I (2008) Breast cancer I/II Safety and immunogenicity data (Q1, 2008) Prostate cancer Preclinical Start of Phase I (2007/2008) Measles Preclinical Start of Phase I (2007) RSV Preclinical Start of Phase I (2008)Guidance maintained for 2007 results
Based on the planned activities and milestone payments, the company expects revenue of approximately DKK 380 million and a loss before tax of DKK 50 million in 2007. At year-end the company's net liquidity is expected to be approximately DKK 900 million.
For more background on these highlights, see the full stock exchange release: http://www.bavarian-nordic.com/pdf/announcements/29-07_uk.pdf
About Bavarian Nordic
Bavarian Nordic, headquartered in Denmark, is a leading international biopharmaceutical company developing and producing innovative vaccines to prevent and treat infectious diseases and cancer.
In the U.S., Bavarian Nordic operates subsidiary companies, BN ImmunoTherapeutics, in Mountain View, California developing vaccines against cancers, and Bavarian Nordic Inc. in Washington, D.C. focused on business development, marketing, and government relations for the Bavarian Nordic Group. For more information on Bavarian Nordic visit: http://www.bavarian-nordic.com
"Safe Harbour" Statement under the Private Securities Litigation Reform Act of 1995": Except for the historical information contained herein, this release contains "forward-looking statements" within the meaning of the Private Securities Reform Act of 1995. No "forward-looking statement" can be guaranteed, and actual results may differ materially from those projected. Bavarian Nordic undertakes no obligation to publicly update any "forward-looking statement", whether as a result of new information, future events, or otherwise. Additional information regarding risks and uncertainties is set forth in the current Annual Report and in Bavarian Nordic's periodic reports, if any, which we incorporate by reference.
(i) This project has been funded in whole with Federal funds from the Office of the Assistant Secretary for Preparedness and Response, Biomedical Advanced Research and Development Authority, under Contract No. HHSO100200700034C.
Source: Bavarian Nordic
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