Bavarian Nordic, a biotech company based in Denmark, experienced a significant 13% jump in its shares following the announcement of stronger-than-expected earnings. The company reported second-quarter revenues of 1.43 billion Danish krone and an operating profit of 420 million krone, surpassing the expectations of analysts. This positive financial performance contributed to the surge in stock prices, with shares up by 13% as of 11:58 a.m. London time on Thursday.
Massive Vaccine Order
In addition to its impressive financial results, Bavarian Nordic also revealed a substantial vaccine order from an undisclosed European country amidst the ongoing mpox outbreak. The contract, consisting of 440,000 doses of mpox and smallpox vaccines, aligns with the company’s original 2024 guidance and is expected to have no impact on remaining capacity for the current year. This order underscores the growing demand for preparedness against infectious diseases, especially in the wake of the recent global health emergency declared by the World Health Organization due to the spread of mpox across multiple countries.
CEO Paul Chaplin highlighted the company’s strategic partnerships with various authorities that recognize the importance of enhancing their readiness for disease outbreaks. Since the previous mpox outbreak in 2022/23, Bavarian Nordic has been actively collaborating with governmental organizations to strengthen preparedness against smallpox and mpox. The company remains capable of supplying up to 10 million vaccine doses by the end of next year, with two million doses set to be available within the current year. The 440,000 dose contract reaffirms Bavarian Nordic’s position in the market, bringing the total value of secured contracts in the Public Preparedness business close to DKK 3 billion.
Given its successful financial performance and the lucrative vaccine order, Bavarian Nordic is confident in confirming its new guidance for the year. The company anticipates aggregated revenue of approximately DKK 5.3 billion and earnings before interest, taxes, depreciation, and amortization of approximately DKK 1.35 billion, positioning itself at the upper end of its range. This reaffirmation of guidance reflects the strong market position and growth prospects of Bavarian Nordic amidst the challenges posed by the ongoing mpox outbreak.