A photograph shows the corporate logo on the headquarters of the Danish biotechnology company Bavarian Nordic in Hellerup, north of Copenhagen.
Liselotte Sabroe | Afp | Getty Images
Shares of Danish biotechnology company Bavarian Nordic rose greater than 12% in early trading on Thursday after the corporate reported better-than-expected earnings and announced a big order of vaccines from an unnamed European country amid the continuing smallpox epidemic.
Bavarian Nordic reported Second-quarter sales were 1.43 billion Danish kroner ($213 million) and operating profit was 420 million kroner, above analyst expectations cited by Reuters.
By 9:44 a.m. London time, shares had risen 11.3 percent.
In a opinion On Wednesday, the corporate also announced that it had won a contract for 440,000 doses to produce vaccines against smallpox and mpox to an unnamed European country.
The order was planned as a part of Bavarian Nordic’s original forecast for 2024 and can subsequently not affect remaining capability this 12 months, the corporate said.
The World Health Organization had previously declared Mpox a world health emergency last week after an outbreak within the Democratic Republic of Congo (DRC) spread to neighboring countries.
CEO Paul Chaplin said the order shows that some countries are increasingly recognizing the necessity for greater preparation following an earlier outbreak in 2022.
“Since the last Mpox outbreak in 2022/23, Bavarian Nordic has built a strong strategic partnership with a number of authorities who have recognized the need to improve their preparedness for smallpox and Mpox,” he said in an announcement.
He added that the corporate still has the capability to deliver as much as 10 million vaccine doses by the tip of next 12 months, with two million of those being available later this 12 months.
All vaccines under the 440,000-unit contract shall be delivered in 2024, bringing the whole value of secured contracts within the Public Preparedness business area to almost DKK 3 billion, the corporate said.
Bavarian Nordic can subsequently confirm its recent annual forecast on the upper end of the range, with total sales of roughly DKK 5.3 billion and earnings before interest, taxes, depreciation and amortisation of roughly DKK 1.35 billion.
