Bavarian Nordic Raises Capital for Vaccine Production and Growth
Kvistgård - Bavarian Nordic A/S will initiate a rights offering, with pre-emptive privileges for existing shareholders, to generate approximately DKK300 million ($52.6 million) in new net capital. The revenue will be used for investments in new production capacity as well as to further strengthen the company's product development activities; specifically to accelerate the development programmes in smallpox, HIV and cancer in the USA and Europe. The rights offering is expected to be carried out during the early summer of 2005. Peter Wulff, President & CEO, commented that correspondingly approximately 85 employees will be hired in 2005, primarily in the production, quality assurance/quality control and research and development departments. Excluding the effect of Bavarian Nordic's share of the upcoming order from the US government for up to 60 million doses of smallpox vaccine (IMVAMUNE™), the Danish-German company projects a turnover of approximately DKK450-500 million ($79-87.8 million) for 2005. As a result of the planned investments the company does not expect that the previously projected revenue for the year will be realized, which was expected to be a balanced result for 2005.
Bavarian Nordic also announced that its production facility in Berlin, Germany, has been granted manufacturing authorisation by the Berlin Office for Occupational Safety, Protection of Health and Technical Safety. The company is now ready to produce within its own manufacturing network large quantities of clinical trial materials for its global development programmes, the first priority of which being the production of clinical materials for the HIV/AIDS multi-centre programme. Bavarian Nordic expects to initiate several new clinical trials this year, including three phase II trials.