Danish biotech company Bavarian Nordic experienced a notable 13% increase in its shares after reporting earnings that surpassed expectations and securing a substantial vaccine order from a European country in response to the mpox outbreak. The company revealed second quarter revenues of 1.43 billion Danish krone ($213 million) and an operating profit of 420 million krone, exceeding analyst predictions. This announcement caused shares to surge by 13% by midday on Thursday.
In a statement, Bavarian Nordic disclosed that it had secured a contract to supply 440,000 doses of mpox and smallpox vaccines to an undisclosed European nation. The order aligns with the company’s initial 2024 guidance and is expected to have no impact on its remaining capacity for the current year. This development comes as a response to the recent declaration by the World Health Organization of mpox as a global public health emergency due to its spread from the Democratic Republic of Congo to neighboring countries.
CEO Paul Chaplin emphasized the growing recognition by certain countries of the necessity for enhanced preparedness in the wake of previous disease outbreaks. He highlighted Bavarian Nordic’s strategic partnerships with various authorities, emphasizing the company’s readiness to supply up to 10 million vaccine doses by the end of next year, with two million doses available in the current year. The 440,000 dose order is slated for delivery in 2024, contributing to the total value of secured contracts in the Public Preparedness sector nearing DKK 3 billion.
As a result of these developments, Bavarian Nordic confirmed its new guidance for the year, anticipating revenues of about DKK 5.3 billion and earnings before interest, taxes, depreciation, and amortization of around DKK 1.35 billion, positioned at the upper end of its projected range. This positive outlook underscores the company’s strong performance and strategic positioning in response to global health challenges.