KVISTGAARD, Denmark, January 11, 2013 - Bavarian Nordic A/S (OMX: BAVA) today announced that it will consolidate its manufacturing activities in Kvistgaard, Denmark with an aim to optimize productivity and profitability. As part of this consolidation, the company will prepare the Kvistgaard facility for the future commercial production of its prostate cancer vaccine, PROSTVAC® and also transfer its production of clinical trial material to the facility. Consequently, the company will close its operations in Berlin, Germany where it has been producing clinical trial material for its MVA-BN® based vaccine candidates.

During 2012, Bavarian Nordic has steadily improved the efficiency in the manufacturing of IMVAMUNE® smallpox vaccine at its commercial-scale facility in Kvistgaard. Further work is ongoing to improve the manufacturing process and the productivity, thus seeking to further improve the profitability of the current and future expected contracts with the U.S. Government to manufacture and deliver IMVAMUNE®.

To fully benefit from the in-house expertise in poxvirus-based vaccine manufacturing as well as to optimize the use of the Kvistgaard facility, Bavarian Nordic has decided to prepare the facility for the future commercial production of PROSTVAC® as well as to move its production of clinical trial material for the company's MVA-BN®-based development projects  This allows Bavarian Nordic for a more flexible manufacturing approach and reduces dependence from subcontractors, thus providing the company full control of pre-launch activities for PROSTVAC®. At the Kvistgaard facility, functions to support the production development of PROSTVAC® are already in place and thus the preparatory work requires only moderate investments.

The above does not affect the company's expectations for the 2012 full year results.

Contact:

Anders Hedegaard, President & CEO.
Phone: +45 23 20 30 64

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