Bavarian Nordic Announces Partnership with U.S. Department of Defense to Combat Equine Encephalitis Virus

• Collaboration valued up to $36M
• Multivalent vaccine designed to protect humans against Eastern, Venezuelan, and Western equine encephalitis virus

COPENHAGEN, Denmark, March 16, 2018 - Bavarian Nordic A/S (OMX: BAVA, OTC: BVNRY) announced today the signing of a new alliance with the United States Department of Defense (DoD) for the development of a prophylactic vaccine against the equine encephalitis virus-a rare, but potentially deadly mosquito-borne illness. With funding from the DoD, Bavarian Nordic will utilize its proprietary MVA-BN^® platform to develop a vaccine against various strains of the virus, for which there is currently no preventative vaccine treatment available.

An MVA-BN^® based candidate vaccine targeting three separate equine encephalitis viruses including Eastern (EEEV), Venezuelan (VEEV), and Western (WEEV) has already demonstrated efficacy against all three viruses in preclinical models. The multi-year collaboration will include further preclinical studies to support clinical development, GMP production and establishment of safety and immunogenicity in humans. Clinical proof of concept data will warrant further development of the MVA-BN^® based candidate vaccine with potential follow-on funding towards FDA licensure and production. The vaccine would then be available to the DoD as needed to vaccinate individuals who may be deployed in a region considered at high risk for a particular illness.

The agreement includes total potential considerations of approximately US$36 million. The award of this multi-year contract does not change the Company's financial guidance for 2018.  

"We are very proud of this alliance which represents yet another public/private engagement between Bavarian Nordic and the U.S. government, and provides the Department of Defense with the first in what could become a 'library' of safe, clinically validated vaccines that are readily accessible and can be deployed as needed," said Paul Chaplin, President and Chief Executive Officer of Bavarian Nordic. "This type of collaboration further validates our model for preparedness, which could prove useful in the years to come for this, and potentially other rare and tropical diseases."