Bavarian Nordic Announces First Half 2018 Results

COPENHAGEN, Denmark, August 16, 2018 - Bavarian Nordic A/S (OMX: BAVA, OTC: BVNRY) announced today its interim financial results and business progress for the first half of 2018 and releases its financial calendar for 2019. 

• Positive RSV Phase 2 results recently confirmed the durability of broad vaccine responses after 1 year, which were rapidly increased following an annual booster vaccination.
• Compelling new research indicates a broader and more potent anti-tumor response after intra-tumoral and intravenous administration, which will broaden our strategy while we maintain our plans to evaluate CV301 in combination with checkpoint inhibitors in three indications. In-line with this strategy for CV301, the lung study will not continue into Phase 2.
• Financial results were in line with our expectations and outlook is maintained. Production and deliveries remain on track to fulfil full year guidance.
• Upgraded cash preparedness provides increased flexibility to execute on the Company's growth strategy. 

"During first half of 2018, we have made important progress supporting the future growth of Bavarian Nordic. Several new studies have been initiated for our cancer vaccine candidates in collaboration with investigators and industry; but I am particularly excited to announce a broadening of our oncology strategy based on compelling new research data. The positive IMVAMUNE Phase 3 results have paved the way for a BLA submission later this year, and our recent RSV data have confirmed our strong position as a leading company in this field. We remain on track with the construction of a new fill/finish facility, which is key for our future revenue generation, and with the recent loan agreement from the European Investment Bank, backing this large investment, we maintain a strong financial flexibility" said Paul Chaplin, President & Chief Executive Officer of Bavarian Nordic.

 

Financial results

Financial results for the first half year were in line with our expectations. 

• Revenue generated for the six months ending June 30, 2018 was DKK 98 million/USD 15 million (DKK 595 million/USD 93 million in the first six months of 2017).
• The income before interest and tax (EBIT) was a loss of DKK 280 million/USD 44 million (profit of DKK 99 million/USD 15 million in the first six months of 2017).
• As of June 30, 2018, the Group's cash preparedness was DKK 2,211 million/USD 346 million (DKK 2,604 million/USD 407 million as of December 31, 2017).

Outlook for 2018 maintained, cash preparedness upgraded

Bavarian Nordic maintains its financial expectations for 2018 as announced on March 12, 2018 with revenues of approximately DKK 500 million/USD 78 million for the full year and a loss before interest and tax (EBIT) of approximately DKK 385 million/USD 60 million. The majority of the 2018 revenues are related to the production and release of IMVAMUNE vaccine for the U.S. Government, which will occur in the second half of 2018. The expected cash preparedness at year-end was recently upgraded from approximately DKK 1,850 million/USD 289 million to approximately DKK 2,100 million/USD 329 million after being granted an unsecured loan facility of EUR 30 million from the European Investment Bank. This loan will support the Company's investments into a new fill-finish manufacturing facility, which is currently under construction and on track. 

 

Danish kroner (DKK) is the Company's functional currency. Solely for information purposes, figures above have also been converted into USD using an assumed exchange rate of DKK 6.39 per 1.00 USD, which was the exchange rate as of June 30, 2018. The financial expectations are based on an exchange rate of DKK 6.60 per 1.00 USD.

 

Operational highlights and subsequent events