Bavarian Nordic Soars on Strong Earnings and Vaccine Order

Shares of Danish biotech firm Bavarian Nordic surged 13% on Thursday following the release of its second-quarter earnings, which exceeded analyst expectations. The company reported revenues of 1.43 billion Danish krone ($213 million) and an operating profit of 420 million krone. This positive financial performance was further bolstered by the announcement of a significant vaccine order from an undisclosed European country amid the ongoing mpox outbreak. Bavarian Nordic secured a contract for 440,000 doses of mpox and smallpox vaccines, which aligns with its original guidance for 2024. The company clarified that this order will not affect its production capacity for the remainder of the year. The announcement comes in the wake of the World Health Organization's declaration of mpox as a global public health emergency, following its spread from the Democratic Republic of Congo to neighboring regions. CEO Paul Chaplin emphasized the importance of this order, highlighting a growing recognition among countries of the need for enhanced preparedness against infectious diseases. He noted that Bavarian Nordic has established strategic partnerships with various authorities since the last mpox outbreak in 2022, reinforcing the urgency for improved readiness. Looking ahead, Bavarian Nordic confirmed its guidance for the year, projecting aggregated revenue of approximately DKK 5.3 billion and earnings before interest, taxes, depreciation, and amortization of around DKK 1.35 billion. The company maintains the capacity to deliver up to 10 million vaccine doses by the end of next year, with two million doses expected to be available this year.