Company Announcement
Bavarian Nordic Announces Interim Results for the First Three Months of 2023
COPENHAGEN,Denmark, May 9, 2023 - Bavarian Nordic A/S (OMX: BAVA) announced today its interim financial results and business progress for the first three months of 2023.
Paul Chaplin, President & Chief Executive Officer of Bavarian Nordic said: "We are pleased to report strong results from the first quarter, driven by the continued deliveries of mpox vaccines to countries worldwide combined with a strong performance in our travel vaccine business. The major highlight for the quarter was the announcement of the acquisition of the travel vaccine portfolio from Emergent BioSolutions. This transaction will expand our portfolio of both marketed and pipeline products, broaden our R&D, manufacturing and commercial capabilities, and not least strengthens our workforce with nearly 300 employees whom we are pleased to welcome to Bavarian Nordic on our journey to become one of the world's largest pure play vaccine companies."
Financial highlights from the first quarter
-
Revenue for the first quarter was DKK 1,252 million and comprised of DKK 848 million from sale of
JYNNEOS®/IMVANEX®/IMVAMUNE® mpox/smallpox vaccine, DKK 243 million from sale of Rabipur®/RabAvert®, DKK 87 million from sale of Encepur®, DKK 43 million from sale of third-party products, and DKK 31 million in other revenue. - The operating result (EBITDA) was a profit of DKK 481 million.
- Cash and cash equivalents at end of the period was DKK 2,971 million, including proceeds from capital raise in February.
- Financial guidance for the full year is maintained at revenue of approximately DKK 6,000 million and EBITDA of approximately DKK 2,200 million, excluding the financial impact from the acquisition of the travel vaccine portfolio from Emergent BioSolutions, which is pending final closing, expected to occur in the second quarter of 2023.
DKK | Q1 | Q1 | 2023 | |||
million | 2023 | 2022 | Guidance | |||
Revenue | 1,252 | 320 | ~6,000 | |||
EBITDA | 481 | (94) | ~2,200 | |||
Other highlights
- In February, Bavarian Nordic announced the acquisition of a portfolio of travel vaccines from Emergent BioSolutions, which includes two marketed vaccines for the prevention of cholera and typhoid and a Phase 3 vaccine candidate for the prevention of chikungunya. As part of the acquisition, Bavarian Nordic will also take over a manufacturing facility in Switzerland, an R&D facility in USA and a smaller specialty sales force in both EU and the US. The total acquisition price is up to USD 380 million including an upfront payment of USD 270 million and conditional milestone payments of up to USD 110 million. The acquisition is expected to close in the second quarter of 2023 and the process is progressing as planned. All statutory approvals, including antitrust, have been secured and only closing conditions between the parties remain outstanding.
- In February, Bavarian Nordic completed a private placement of ~7 million new shares, raising gross proceeds of DKK 1,642 million. The proceeds will be used together with the Company's existing cash for the payment to Emergent BioSolutions upon closing of the transaction.
- Following the annual general meeting in March, Luc Debruyne, former President Global Vaccines at GSK, was elected as new chair of the board, succeeding Gerard van Odijk, who had served as member of the board since 2008 and as chair since 2014. In addition to Luc Debruyne, Heidi Hunter and Johan van Hoof were also elected as new members of the board.
Events after the reporting date
- In April, Bavarian Nordic announced the completion of accrual of cases for the primary efficacy analysis in the Phase 3 clinical trial of MVA-BN® RSV, the Company's investigational vaccine for the prevention of respiratory syncytial virus (RSV) in adults ≥60 years of age. Topline results from the study are expected around mid-2023.
Conference call and webcast
The management of Bavarian Nordic will host an investor/analyst call today at 2 pm CEST (8 am EDT) to present the interim results followed by a Q&A session. A listen-only version of the call and presentation slides can be accessed via https://bit.ly/41wdM0C. To join the Q&A session, please register in advance via. https://bit.ly/3MMZx3e.
Contacts
Europe: Rolf Sass Sørensen, Vice President Investor Relations, Tel: +45 61 77 47 43
US: Graham Morrell, Paddock Circle Advisors, graham@paddockcircle.com, Tel: +1 781 686 9600
Page 1 of 21 | ||
Bavarian Nordic A/S | ||
Philip Heymans Alle 3 | Tel. +45 33 26 83 83 | CVR-no. 16 27 11 87 |
DK-2900 Hellerup | www.bavarian-nordic.com | LEI Code: 2138006JCDVYIN6INP51 |
Bavarian Nordic Announces Interim Results for the First Three Months of 2023 | Page 2 of 21 |
Company Announcement no. 17 / 2023
About Bavarian Nordic
Bavarian Nordic is a fully integrated vaccines company focused on the research and development, manufacturing and commercialization of life-saving vaccines. We are a global leader in smallpox and mpox vaccines, which have been developed through our long-standing partnership with the U.S. Government to enhance the public health preparedness and have a strong portfolio of vaccines for travelers and endemic diseases. Using our live virus vaccine platform technology, MVA-BN® and in-licensed technologies, we have created a diverse portfolio of proprietary and partnered product candidates designed to save and improve lives by unlocking the power of the immune system. For more information visit www.bavarian-nordic.com.
Forward-looking statements
This announcement includes forward-looking statements that involve risks, uncertainties and other factors, many of which are outside of our control, that could cause actual results to differ materially from the results discussed in the forward-looking statements. Forward-looking statements include statements concerning our plans, objectives, goals, future events, performance and/or other information that is not historical information. All such forward-looking statements are expressly qualified by these cautionary statements and any other cautionary statements which may accompany the forward-looking statements. We undertake no obligation to publicly update or revise forward-looking statements to reflect subsequent events or circumstances after the date made, except as required by law.
Company Announcement no. 17 / 2023
Bavarian Nordic Announces Interim Results for the First Three Months of 2023 | Page 3 of 21 | |||||
Management's Review | ||||||
Consolidated Key Figures (unaudited) | ||||||
DKK thousand | 1/1 - 31/3 2023 | 1/1 - 31/3 2022 | 1/1-31/12 2022 | |||
Income statements | ||||||
Revenue | 1,252,053 | 320,056 | 3,150,793 | |||
Production costs | 428,397 | 292,183 | 1,449,531 | |||
Sales and distribution costs | 65,630 | 37,388 | 212,932 | |||
Research and development costs | 298,018 | 104,799 | 1,183,092 | |||
Administrative costs | 90,253 | 77,786 | 376,023 | |||
Income before interest and taxes (EBIT) | 369,755 | (192,100) | (70,785) | |||
Financial items, net | 6,725 | (78,519) | (260,826) | |||
Income before company tax | 376,480 | (270,619) | (331,611) | |||
Net profit for the period | 376,367 | (271,943) | (347,382) | |||
Balance sheet | ||||||
Total non-current assets | 8,057,716 | 7,552,124 | 7,906,666 | |||
Securities, cash and cash equivalents | 2,971,164 | 3,447,069 | 2,845,166 | |||
Other current assets | 2,151,977 | 992,356 | 1,639,414 | |||
Total assets | 13,180,857 | 11,991,549 | 12,391,246 | |||
Equity | 9,120,901 | 7,125,298 | 7,149,987 | |||
Non-current liabilities | 2,270,687 | 2,834,985 | 2,953,919 | |||
Current liabilities | 1,789,268 | 2,031,266 | 2,287,340 | |||
Cash flow statements | ||||||
Cash flow from operating activities | (214,695) | 23,796 | 220,053 | |||
Cash flow from investment activities | 330,892 | (290,909) | (877,405) | |||
- Investment in intangible assets | (211,837) | (148,571) | (1,020,331) | |||
- Investment in property, plant and equipment | (31,026) | (150,018) | (361,244) | |||
- Net investment in securities | 589,594 | 16,826 | 673,630 | |||
Cash flow from financing activities | 584,247 | 75,389 | 635,820 | |||
Financial Ratios1) | ||||||
EBITDA | 481,496 | (93,696) | 328,465 | |||
Earnings (basic) per share of DKK 10 | 5.1 | (3.9) | (4.9) | |||
Net asset value per share | 117.1 | 101.1 | 101.1 | |||
Share price at period-end | 197 | 326 | 213 | |||
Share price/Net asset value per share | 1.7 | 3.2 | 2.1 | |||
Number of outstanding shares at period-end (thousand) | 77,873 | 70,473 | 70,735 | |||
Equity share | 69% | 59% | 58% | |||
Number of employees, converted to full-time, at period-end | 1,040 | 830 | 975 |
- Earnings per share (EPS) is calculated in accordance with IAS 33 "Earning per share". Other financial ratios have been calculated in accordance with the guidelines from the Danish Society of Financial Analysts.
Reconciliation of EBITDA | |||
Income before interest and tax (EBIT) | 369,755 | (192,100) | (70,785) |
Depreciation and amortization | 111,741 | 98,404 | 399,250 |
EBITDA | 481,496 | (93,696) | 328,465 |
Company Announcement no. 17 / 2023
Bavarian Nordic Announces Interim Results for the First Three Months of 2023 | Page 4 of 21 | ||||||
Sales performance | |||||||
Our products | Third-party products | ||||||
PRODUCT | INDICATION | MARKETS | |||||
PRODUCT | INDICATION | MARKETS | |||||
JYNNEOS® | 1 | Mpox and Smallpox | Sold to governments | IXIARO® | Japanese encephalitis | Germany and Switzerland | |
Rabipur® | 2 | Rabies | Global (20 countries) | DUKORAL® | Cholera | Germany and Switzerland | |
Encepur® | Tick-borne encephalitis (TBE) | EU (12 countries) | HEPLISAV-B® | Hepatitis-B | Germany | ||
Mvabea® | 3 | Ebola | Licensed to Janssen | Third-party products marketed and distributed in selected markets by | |||
1 | Also marketed as IMVAMUNE® and IMVANEX®. | Bavarian Nordic. | |||||
2 | Also marketed as RabAvert®. | ||||||
3 | Licensed to Janssen as part of a prime-boost vaccine regimen which has |
been approved in the EU. Janssen has made the vaccine available for high- risk areas in West Africa.
Q1 revenues | |||
mDKK | Q1 2023 | Q1 2022 | Growth |
JYNNEOS/IMVANEX/IMVAMUNE | 848 | - | - |
Rabipur/RabAvert | 243 | 117 | 108% |
Encepur | 87 | 69 | 26% |
Third-party products | 43 | 14 | 207% |
Other revenue | 31 | 120 | -74% |
Total | 1,252 | 320 | 291% |
Comparative figures for 2022 are shown in brackets. Where market shares are mentioned, these are measured by value.
JYNNEOS/IMVANEX/IMVAMUNE
Revenue from sale of JYNNEOS/IMVANEX/IMVAMUNE in the first quarter was DKK 848 million (DKK 0 million) and includes revenue from ongoing contracts with the US government as well as contracts entered in 2022 with various other governments and organizations in response to the global mpox outbreak.
Rabipur/RabAvert
The Rabipur/RabAvert business continued the strong growth trajectory from 2022 and delivered revenue amounting to DKK 243 million (DKK 117 million) for the first quarter. The 108% growth in revenue versus the prior year was driven by continued and significant market growth in the two largest markets, US and Germany combined with strong brand performance in these markets.
The US market grew by 40% versus the prior year and RabAvert now has a market share of approximately 69%, which is 5pp higher compared to prior year.
The German market grew by 211%, reaching the pre COVID level for the quarter. Rabipur achieved a market share of 95%.
Encepur
Also, the Encepur business delivered strong growth with revenue amounting to DKK 87 million (DKK 69 million) for the first quarter, i.e. an increase of 26% versus prior year.
The Germany market grew by 33% versus prior year. Encepur market share was 25%, 4pp below prior year, but improved compared to the fourth quarter 2022, that was impacted by a temporary stock-out situation.
Third-party products
Revenue from sale of third-party products in the first quarter was DKK 43 million (DKK 14 million).
Other revenue
Revenue from contract work in the first quarter was DKK 31 million (DKK 120 million), mainly stemming from ongoing contracts with the U.S. government.
Company Announcement no. 17 / 2023
Bavarian Nordic Announces Interim Results for the First Three Months of 2023 | Page 5 of 21 |
Other matters
Acquisition of travel vaccines from Emergent BioSolutions
In February, we announced the acquisition of a portfolio of travel vaccines from Emergent BioSolutions for a total price of up to USD 380 million including an upfront payment of USD 270 million and conditional milestone payments of up to USD 110 million.
The acquisition includes two marketed vaccines for the prevention of cholera and typhoid and a Phase 3 vaccine candidate for the prevention of chikungunya, an emerging disease for which no vaccines are currently available.
As part of the acquisition, we will also take over a manufacturing facility in Switzerland, an R&D facility in USA and a smaller specialty sales force in both EU and the US.
The acquisition is expected to close in the second quarter of 2023 and the process is progressing as planned. All statutory approvals, including antitrust, have been secured and only closing conditions between the parties remain outstanding.
Developments in share capital
By December 31, 2022, Bavarian Nordic's share capital was DKK 707,353,760, comprising 70,735,376 shares of a nominal value of DKK 10 each.
In February 2023, Bavarian Nordic completed a private placement of 7,046,839 new shares, raising gross proceeds of DKK 1,642 million. The proceeds will be used together with the Company's existing cash for the payment to Emergent BioSolutions upon closing of the transaction.
In March 2023, additional 90,846 new shares were issued as a consequence of employees' exercise of warrants, raising gross proceeds of DKK 13.4 million.
By March 31, 2023, the share capital was DKK 778,730,610, comprising 77,873,061 shares of a nominal value of DKK 10 each.
New chair and members of the board
Following the annual general meeting in March, Luc Debruyne, former President Global Vaccines at GSK, was elected as new chair of the board, succeeding Gerard van Odijk, who has served as member of the board since 2008 and as chair since 2014. In addition to Luc Debruyne, Heidi Hunter and Johan van Hoof were also elected as new members of the board.
After constitution of the board and its subcommittees, the board composition is as follows:
Member | FRAC | NC | STI |
Luc Debruyne, chair | C | M | |
Anders G. Pedersen, deputy chair | M | M | |
Peter Kürstein | M | M | |
Frank Verwiel | M | M | |
Anne Louise Eberhard | C | M | |
Heidi Hunter | C | ||
Johan van Hoof | M | M | |
Linette M. Andersen, employee-elected | |||
Thomas A. Bennekov, employee-elected | |||
Anja Gjøl, employee-elected | |||
Karen M. Jensen, employee-elected | |||
FRAC: Finance, Risk and Audit Committee |
NC: Nomination and Compensation Committee
STI; Science, Technology and Investment Committee
M: Member, C: Chair
Company Announcement no. 17 / 2023
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Bavarian Nordic A/S published this content on 09 May 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 09 May 2023 05:59:05 UTC.