* Preliminary 2023 results exceed the latest guidance and represent the best-
ever financial result in the Company's history driven by extraordinary
growth in travel health and a surge in smallpox/mpox vaccine sales.
* 2024 revenue of DKK 5,000-5,300 million and EBITDA of DKK 1,100-1,350
million expected.
* Focused R&D efforts to drive sustainable value creation within infectious
diseases; discontinuing immuno-oncology projects.
* The Company will host three capital markets days during February.
COPENHAGEN, Denmark, February 21, 2024 - Bavarian Nordic A/S (OMX: BAVA) today
reports preliminary, unaudited financial results for 2023 and financial guidance
for 2024. Furthermore, the Company provides an update on its R&D priorities.
The preliminary revenue in 2023 was DKK 7,062 million compared to DKK 3,151
million in 2022, thus exceeding the annual guidance of DKK 6,900 million. The
improved revenue was driven by the Public Preparedness segment due to a surge in
sales of smallpox/mpox vaccines following the unfortunate outbreak in 2022, as
well as continued strong growth in the Travel Health business, further supported
by the addition of new products through the latest acquisition in May 2023. The
preliminary revenue comprised of DKK 5,027 million from Public Preparedness and
DKK 1,877 million from Travel Health. Other revenue reached DKK 158 million.
The preliminary operating result (EBITDA) was a profit of DKK 2,615 million
compared to DKK 328 million in 2022, thus exceeding the latest guidance of DKK
2,300 million.
"This historical result is an endorsement of the successful execution of the
commercial strategy we initiated back in 2020 and the transition to one of the
largest pure play vaccine companies in the world. It is all the more pleasing to
see that all parts of the company have contributed to this result, due to our
brand performance, resurgence in travel, and expanding our partnerships in
public preparedness. While the surge in demand for our smallpox/mpox vaccine is
decreasing, in part due to the role our vaccine has played in reducing the mpox
cases, the public preparedness base business has grown in the number of
customers and the emerging private mpox business. This, together with strong
growth in travel health, means Bavarian Nordic is now a DKK 5 billion annual
revenue company and growing, with profit margins that can compete with pharma
companies. The increased manufacturing capacity and broader customer base also
mean that we will be able to respond to future surges in demand, following
increased cases of mpox, or extraordinary governmental orders, that will allow
us to exceed the growing base business from time to time. I would like to thank
all the dedicated and highly skilled employees for delivering an outstanding
annual result that has saved millions of lives through access to our life-saving
vaccines during 2023," said Paul Chaplin, President and CEO of Bavarian Nordic.
The consolidated, audited financial results for 2023 will become available on
March 6, 2024, in connection with the publication of the Company's annual report
for 2023.
DKK million FY 2023 guidance FY 2023 guidance FY 2023 actuals
Numbers are original, 15-Feb- latest, 03-Aug- preliminary,
approximate 2023 2023 unaudited
-------------------------------------------------------------------------------
Revenue 6,000 6,900 7,062
EBITDA 2,200 2,300 2,615
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2024 financial guidance
For 2024, Bavarian Nordic expects revenue of DKK 5,000-5,300 million and EBITDA
of DKK 1,100-1,350 million.
The expected revenue is comprised of DKK 2,700-3,000 million from Public
Preparedness vaccines, of which DKK 1,600 million have already been secured by
contracts, approximately DKK 2,100 million from Travel Health vaccines and
approximately DKK 200 million from contract work. Travel Health anticipates a
12% growth, driven by a mix of continued market growth and market share gains.
Research and development costs of approximately DKK 850 million are expected, of
which the chikungunya program represents nearly half.
Similarly, the chikungunya program will impact manufacturing costs negatively by
approximately DKK 240 million due to the manufacturing of batches as part of the
preparations for commercial launch in 2025. Pending approval of the vaccine, it
is expected that these costs will be reversed and capitalized in 2025. Adjusting
the implicit 2024 EBITDA margin for this effect would give an EBITDA margin
range of 27-30%.
Net working capital is expected to increase by approximately DKK 900 million due
to final inventory build-up before the completion of tech transfer of rabies and
TBE manufacturing. Other tangible investments of approximately DKK 300 million
are expected.
Cash outflow in 2024 further includes milestone payments of DKK 1,800 million to
GSK and Emergent BioSolutions.
The outlook is based on the following assumptions on currency exchange rates of
DKK 6.90 per 1 USD and DKK 7.45 per 1 EUR.
Focused R&D priorities to drive sustainable value creation
Bavarian Nordic's only active immuno-oncology project, TAEK-VAC, has reached a
stage where clinical expansion and further investments would be required. The
Company has decided to focus its future R&D efforts on infectious diseases
through product improvements to remain competitive and new vaccine development.
As a consequence, the TAEK-VAC project will not be continued, and the Company
has no further plans to invest in immuno-oncology vaccine development.
Capital markets days in February
As previously announced, Bavarian Nordic will hold three capital markets days
for investors and analysts, by invitation only, on the following dates and
locations: February 26 in Copenhagen, February 27 in London, and February 28 in
New York City.
At these half-day events, the management of Bavarian Nordic will provide an
update on the Company's strategy, as well as a deep dive into its two business
areas: Travel Health and Public Preparedness, and the opportunities ahead. For
more information, visit www.bavarian-nordic.com/cmd (http://www.bavarian-
nordic.com/cmd).
About Bavarian Nordic
Bavarian Nordic is a fully integrated vaccine company with a mission to protect
and save lives through innovative vaccines. We are a global leader in smallpox
and mpox vaccines, supplied to governments to enhance public health preparedness
and have a strong portfolio of vaccines for travelers and endemic diseases. For
more information visit www.bavarian-nordic.com (http://www.bavarian-nordic.com).
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
Europe: Rolf Sass Sørensen, Vice President Investor Relations, Tel:
+45 61 77 47 43
US: Graham Morrell, Paddock Circle Advisors, graham@paddockcircle.com
(mailto:graham@paddockcircle.com), Tel: +1 781 686 9600
Company Announcement no. 01 / 2024
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