The shares of Danish biotech company Bavarian Nordic have seen a significant increase of 13% following the release of stronger-than-expected earnings. This spike in stock price came after the company reported second quarter revenues of 1.43 billion Danish krone and an operating profit of 420 million krone, surpassing the predictions of analysts reported by Reuters.
In addition to their impressive financial report, Bavarian Nordic announced a substantial vaccine order from an unnamed European country in response to the ongoing mpox outbreak. The order consists of 440,000 doses of mpox and smallpox vaccines, aligning with the company’s original 2024 guidance. This order will not affect the company’s capacity for the remainder of the year, according to Bavarian Nordic.
The recent declaration of mpox as a global public health emergency by the World Health Organization has prompted increased demand for vaccines. Bavarian Nordic’s CEO, Paul Chaplin, highlighted the importance of preparedness in the face of outbreaks, pointing out the company’s established partnerships with various authorities focused on enhancing smallpox and mpox readiness.
Despite the demand for vaccines, Bavarian Nordic remains confident in its capacity to deliver. The company anticipates supplying up to 10 million doses of the vaccine by the end of next year, with two million doses available within the current year. The 440,000 dose order is scheduled for delivery in 2024, contributing to the total value of secured contracts in the Public Preparedness business nearing DKK 3 billion.
With this latest development, Bavarian Nordic reaffirms its guidance for the year, forecasting revenue close to DKK 5.3 billion and earnings before interest, taxes, depreciation, and amortization around DKK 1.35 billion. The company’s ability to meet the increasing demand for vaccines showcases its commitment to public health and preparedness.
Overall, Bavarian Nordic’s success in securing significant vaccine orders and exceeding financial expectations positions it as a key player in addressing global health challenges.