COPENHAGEN, Denmark, March 12, 2018 - Bavarian Nordic A/S (OMX: BAVA, OTC: BVNRY) announced today its Annual Report for 2017. Below is a summary of business progress, financial performance for the year and financial outlook for 2018 from the report. The full report is attached as a PDF file and can be found on the company's website, www.bavarian-nordic.com.
Key highlights in 2017
Key highlights in after the balance sheet date
Paul Chaplin, President & Chief Executive Officer of Bavarian Nordic said: "2017 will most likely be remembered for the failure of PROSTVAC monotherapy to demonstrate an overall survival benefit for prostate cancer patients. However, we have built what we believe to be a robust company, with multiple value-creating assets that contributed to a solid progress over the year. Our collaboration with industry continues to expand, most notably our partnership with Janssen evolved to include additional two commercial infectious disease targets, but we also entered several collaborations in support of our clinical strategy for CV301 in combination with immune checkpoint inhibitors. Most importantly, our long-term partnership with the U.S. Government has continued to evolve with the award of a contract for supply of freeze-dried IMVAMUNE. While the vaccine continues to be an important revenue driver, full revenues from the new contract will not be recognized until we start deliveries of the final product, which will happen once our projected fill/finish line has been completed and validated, expectedly in 2021. Meanwhile, we will continue to invest significantly in our pipeline to secure the progress of our prioritized projects such as CV301 and our RSV vaccine."
Financial Performance
Bavarian Nordic's overall financial results for 2017 were in line with the Company's latest guidance. While the revenue and earnings before interest and taxes (EBIT) projections were maintained throughout the year, expectations to the year-end cash preparedness were upgraded in July 2017 DKK 2,600 million as result of raising DKK 208 million in proceeds from the issue of new shares to Johnson & Johnson Innovation - JJDC, Inc. in connection with the expanded collaboration with Janssen.
Danish kroner (DKK) is the Company's reporting currency. All USD figures provided below are based upon an assumed exchange rate of DKK 6.21 per 1.00 USD, which was the exchange rate as of December 31, 2017.
DKK million | USD million | |||
2017 | guidance | actual | guidance | actual |
Revenue | 1,300 | 1,370 | 209 | 221 |
EBIT | 350 | 353 | 56 | 57 |
Cash preparedness, year-end* | 2,600 | 2,604 | 419 | 419 |
Revenue was comprised of DKK 823 million from sale of IMVAMUNE to the U.S. Government, DKK 51 million from the sale of IMVAMUNE to other customers, DKK 97 million from ongoing development contracts, and DKK 399 million from the upfront payment received from Bristol-Myers Squibb in March 2015, which was recognized as income in September 2017 following the discontinuation of the PROSPECT study.
Outlook for 2018
2018E | DKK million | USD million |
Revenue | 500 | 81 |
EBIT | (385) | (62) |
Cash preparedness, year-end* | 1,850 | 298 |
* Cash preparedness includes cash, cash equivalents, investments in securities and the aggregate amount of undrawn credit lines.
Bavarian Nordic expects revenue of approximately DKK 350 million from the IMVAMUNE smallpox vaccine business, including production and storage of bulk vaccine for the U.S. Government and delivery of doses to the Public Health Agency of Canada, and approximately DKK 150 million from ongoing research and development contracts.
With our strategic decision to advance the pipeline, we maintain our research and development costs at similar levels as previous years, and with the establishment of a fill-finish facility to be ready in 2021, we are increasing our investments in the coming years. We are doing this in order to prepare to realize the full value of our contract framework with the U.S. government for supply of freeze-dried IMVAMUNE.
Research and development costs will be approximately DKK 510 million of which DKK 110 million will be recognized as production costs.
Conference call and webcast
The management of Bavarian Nordic will host a conference call today at 2 pm CET (9 am EDT) to present the annual results followed by a Q&A session. A listen-only version of the call can be accessed via http://www.bavarian-nordic.com/investor/events.aspx?event=5282. To join the Q&A session, use one of the following dial-in numbers: Denmark: +45 35 15 81 21, UK: +44 (0) 330 336 9411, USA: +1 323-794-2551. Participant code is 8332812.
About Bavarian Nordic
Bavarian Nordic is a fully integrated biotechnology company focused on the development of innovative and safe therapies against cancer and infectious diseases. Using our live virus vaccine platform technology, MVA-BN®, we have created a diverse portfolio of proprietary and partnered product candidates intended to improve the health and quality of life for children and adults. We supply our IMVAMUNE® non-replicating smallpox vaccine to the U.S. Strategic National Stockpile and other government stockpiles. The vaccine is approved in the European Union (under the trade name IMVANEX®) and in Canada. Registration studies are currently underway in the U.S. In addition to our long-standing collaboration with the U.S. government on the development of IMVAMUNE® and other medical countermeasures, our infectious disease pipeline comprises a proprietary RSV program as well as vaccine candidates for Ebola, HPV, HBV and HIV, which are developed through a strategic partnership with Janssen. Additionally, in collaboration with the National Cancer Institute, we have developed a portfolio of active cancer immunotherapies, designed to alter the disease course by eliciting a robust and broad anti-cancer immune response while maintaining a favorable risk-benefit profile. Through multiple industry collaborations, we seek to explore the potential synergies of combining our immunotherapies with other immune-modulating agents, e.g. checkpoint inhibitors.
For more information visit www.bavarian-nordic.com or follow us on Twitter @bavariannordic.
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.
Contacts
Rolf Sass Sørensen
Vice President Investor Relations (EU)
Tel: +45 61 77 47 43
Seth Lewis
Vice President Investor Relations (US)
Tel: +1 978 341 5271
Company Announcement no. 07 / 2018