BVNRY Bavarian Nordic AS (PK)

EDISON EQUITY RESEARCH: BAVARIAN NORDIC - STRATEGIC EBOLDA DEAL FILLS 2015 REVENUE GAP

Bavarian Nordic’s $187m exclusive global licensing and supply deal for its development Ebola vaccine MVA-BN Filovirus with Janssen (part of J&J) secures its financial position and provides large pharma validation for the core MVA-BN vaccine platform. Deal terms include a $43m (DKK251m) equity investment (giving J&J a 4.9% stake) and various licence/supply payments that will boost FY15 revenues, easing the company through an anticipated gap in US government Imvamune orders. End-FY14 cash preparedness guidance is raised to DKK1,000m from DKK600m: revenue guidance is maintained (recognition will occur in 2015). Factoring deal economics into our company valuation increases it to DKK5.3bn.

Bavarian Nordic is a Danish biotech focused on developing and manufacturing novel cancer immunotherapies and vaccines for infectious diseases. Its lead products are Prostvac (prostate cancer) and Imvamune (smallpox).

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