Bavarian Nordic Announces Exercise of USD 44 Million Option by the U.S. Government under Contract for Freeze-dried MVA-BN Smallpox Vaccine

COPENHAGEN, Denmark, January 18, 2019 - Bavarian Nordic A/S (OMX: BAVA, OTC: BVNRY) announced today that the U.S. Biomedical Advanced Research and Development Authority (BARDA) have exercised another option under the ongoing contract for freeze-dried MVA-BN smallpox vaccine.

The option, valued at USD 44 million, will cover qualification of the new fill-finish facility, currently being established at the Company's manufacturing site in Denmark, as well as transfer and validation of the freeze-drying process. The majority of this contract option is expected to be revenue recognised in 2019 and 2020.

This is the second option exercised under the contract. In 2017, BARDA exercised an option of USD 37 million to cover development costs associated with the Phase 3 study required for the eventual approval of the freeze-dried MVA-BN smallpox vaccine. This Phase 3 will be initiated in the first half of 2019.

"We are well underway in the establishment of our new fill-finish facility, which will not only unlock the full value of our smallpox vaccine contracts with the U.S. Government, but will also strengthen the commercial foundation of our company in the future as we become a fully-fledged vaccine manufacturer.  The option awarded today will support the final stages of bringing the facility into operations, and we look forward to continuing our successful partnership with BARDA in the development and production of biological countermeasures to protect the U.S. population, " said Paul Chaplin, President and Chief Executive Officer of Bavarian Nordic.

About the new fill-finish facility
Bavarian Nordic is currently constructing a 3,200 sqm fill-finish facility in extension of its existing large-scale vaccine manufacturing facility in Denmark. Utilizing isolator technology, and with large-scale lyophilization, labelling and packaging line, the new facility will add to the current flexibility of the Company to manufacture multiple products at commercial scale, thus consolidating its position as a leading vaccine manufacturer. The new facility has been designed with a potential annual capacity of up to 40 million doses of liquid vaccines and 8 million doses of freeze-dried vaccines.