Bavarian Nordic Announces Acquisition of Travel Vaccine Portfolio from Emergent BioSolutions

Bavarian Nordic A/S (OMX: BAVA) has just announced a major agreement with Emergent BioSolutions Inc. (NYSE: EBS), acquiring two already-marketed travel vaccines, Vivotif® and Vaxchora®, as well as a Phase 3 vaccine candidate for the prevention of Chikungunya virus. The total consideration is up to USD 380 million, including an upfront payment of USD 270 million and potential conditional milestone payments of up to USD 110 million. In addition, the acquisition includes facilities and key personnel related to the acquired assets.

Upon the successful completion of the transaction, Bavarian Nordic will become the proud owner of a host of exciting new assets. These assets are sure to bolster the company’s current portfolio and propel it to even greater heights of success.

Vivotif® (Typhoid Vaccine Live Oral Ty21a) is the only oral vaccine approved by the U.S. Food and Drug Administration (FDA) to provide protection against the potentially life-threatening infection of typhoid fever. This vaccine is also available in more than 25 countries across Europe, offering an effective and convenient solution for those wishing to reduce their risk of contracting this serious condition.

Vaxchora® (Cholera Vaccine Live Oral) is the only FDA-licensed vaccine specifically designed to protect against cholera, a potentially severe intestinal disease caused by Vibrio cholerae serogroup O1. The vaccine has also been approved in Europe and is available in more than 25 countries, providing a powerful weapon against this life-threatening illness.

A revolutionary Chikungunya vaccine candidate is on the horizon, with Phase 3 clinical trials anticipated to conclude in the second half of 2023 and a projected launch date of 2025. This vaccine has the potential to make a major impact in an area of high unmet medical need and boasts a highly competitive profile.

At the forefront of the fight against Chikungunya, a debilitating virus, lies a trifecta of research and development facilities in the United States, a Swiss-based biologics manufacturing facility, and EU/US-based commercial operations with a specialized salesforce. Together, these three components are paving the way for the development of a Chikungunya vaccine, providing hope to those affected by the virus.

Bavarian Nordic is proud to announce its acquisition of a promising late-stage vaccine candidate against Chikungunya, an emerging infectious disease with a significant unmet medical need worldwide. With this addition to the company’s commercial portfolio and pipeline, Bavarian Nordic is now one of the largest pure-play vaccine companies. The acquisition also gives the company expanded manufacturing capabilities, providing greater flexibility and scale in production for the launch of several new products over the coming years. As travel vaccines bounce back after the COVID-19 pandemic, this expanded portfolio allows Bavarian Nordic to explore synergies in their commercial presence across key markets.

Strategic rationale

Bavarian Nordic is on a mission to become one of the world’s leading pure-play vaccine companies. Through a combination of organic growth, launch of new products from its R&D pipeline, and strategic acquisitions, Bavarian Nordic aims to bring underprioritized products to the fore and become a global leader in infectious disease prevention. With a strong track record of success, Bavarian Nordic is poised to become a major player in the vaccine industry.

Bavarian Nordic has taken a major step forward in expanding and diversifying its commercial portfolio and development pipeline with the acquisition of two market-leading and revenue-generating vaccines against cholera and typhoid fever. These vaccines are already being marketed in over 25 countries across the US and Europe, providing Bavarian Nordic with clear commercial synergies in their existing travel vaccines business. With this acquisition, Bavarian Nordic is now firmly established as a global leader in the travel vaccine industry.

The acquisition of the US-based sales and distribution setup by Bavarian Nordic not only enables expansion of its US commercial activities, but also provides an opportunity to expand its reach into new European markets. This development opens up a world of possibilities, allowing the company to boost its marketing, sales, and distribution capabilities, with increased potential for growth.

Bavarian Nordic has just acquired the rights and R&D know-how to a promising vaccine candidate against Chikungunya, a viral disease spread by infected mosquitoes that can cause debilitating joint pain. With no approved vaccine currently available, this acquisition could open up a lucrative annual market estimated to be worth more than USD 500 million. It is a major step forward in the fight against Chikungunya, which has been endemic in many tropical and subtropical countries and has seen increasing prevalence over time.

In a move to strengthen its manufacturing capabilities, the company has acquired a biologics facility in Bern, Switzerland. This acquisition offers enhanced flexibility and the potential to insource the production of future commercial products, in addition to a seamless manufacturing of acquired products. This upgrade is sure to benefit the business and its customers alike.

Financial implications of the acquisition in 2023

The acquisition of the new business is expected to bring in an estimated DKK 200 million in revenue and a loss of DKK 400 million in EBITDA. This loss is due to investments in the Chikungunya Phase 3 program and integration costs. The financial impact of the acquisition is still pending the final closing of the transaction, but once the deal is closed, the Company will provide an updated forecast for the year.

About Bavarian Nordic

Bavarian Nordic is a pioneering vaccines company revolutionizing public health preparedness with life-saving vaccines. Through our longstanding partnership with the U.S. Government, we have established ourselves as global leaders in smallpox and mpox vaccines. Our commercial product portfolio also includes market-leading vaccines against rabies and tick-borne encephalitis. Leveraging our cutting-edge MVA-BN® live virus vaccine platform technology and in-licensed technologies, we have developed a diverse portfolio of proprietary and partnered product candidates designed to empower the immune system. We are currently in Phase 3 development for an RSV vaccine for older adults and our next-generation COVID-19 vaccine, committed to saving and improving lives worldwide.

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