Monkeypox Vaccine Maker Bavarian Nordic Bets $380M On Emergent Bio's Travel Vaccines

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  • Bavarian Nordic A/S BVNRY has agreed to acquire two marketed travel vaccines, Vivotif for the prevention of typhoid fever and Vaxchora against cholera, from Emergent BioSolutions Inc EBS.
  • The company will also acquire a Phase 3 vaccine candidate to prevent the Chikungunya virus.
  • The deal consideration of $380 million includes $270 million in an upfront payment and up to $110 million in future conditional milestone payments. 
  • The acquisition also includes facilities and key personnel related to the acquired assets.
  • Also Read: 'Waiting Game Continues' In Emergent BioSolutions, Analysts Cut Price Target.
  • A late-stage vaccine candidate targeting Chikungunya with expected Phase 3 read-out in the second half of 2023 and projected launch in 2025.
  • Approximately 280 current Emergent employees are expected to join Bavarian Nordic as part of the transaction.
  • The acquisition enables the expansion of Bavarian Nordic's US commercial sales, marketing, and distribution setup and increased scale in more European markets where the company is not present today.
  • The acquired business is expected to add approximately DKK 200 million to revenue and a loss of approximately DKK 400 million to EBITDA, not included in the previously announced financial guidance for 2023. 
  • The expected loss is due to investments in the Chikungunya Phase 3 program and the inclusion of necessary one-off integration costs. 
  • This transaction is expected to close in the first half of 2023.
  • Price Action: EBS shares are up 10.48% at $14.65 during the premarket session on the last check Wednesday.
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