Bavarian Nordic Shares Surge on New Mpox Vaccine Order

Danish pharmaceutical company Bavarian Nordic has secured multiple agreements for its mpox vaccine, Jynneos, this month amid an uptick in global cases. The company, known for its smallpox/mpox vaccine, is seeing increased demand and a corresponding rise in its stock value.

This week, Bavarian Nordic reported its first-half financial results, revealing a fresh order from an unspecified European country for its Jynneos vaccine. CEO Paul Chaplin shared this news in a company release. This latest order builds on a significant $156.8 million contract with the U.S. Biomedical Advanced Research and Development Authority that came earlier in the month. Additionally, the European Health Emergency Preparedness and Response Authority placed an order for over 175,000 doses, which will be donated to Africa.

In light of these new supply agreements, Bavarian Nordic has reaffirmed its revenue projections for the year. The company anticipates generating around 5.3 billion Danish kroner (approximately $775 million), which is at the upper limit of its prior forecast. Initially, the revenue estimate ranged between 5 billion kroner ($731 million) and 5.3 billion kroner ($775 million).

Following the announcement of the new order, Bavarian Nordic’s shares rose by 5% on Thursday. Over the past month, the company’s stock has surged nearly 50%. Jynneos, which became commercially available in the U.S. in April, has long been part of government stockpiles for mpox and smallpox. It's the only approved vaccine for mpox, making it a crucial defense when the virus spread in the U.S. in 2022.

The World Health Organization (WHO) recently declared the rapid mpox spread in Africa a global health emergency. Bavarian Nordic is committed to ensuring equitable vaccine access, collaborating closely with the Africa Centres for Disease Control and Prevention to build a manufacturing network on the continent, according to CEO Paul Chaplin. The company is also partnering with the WHO to create a regulatory pathway that would enhance vaccine access globally.

Chaplin emphasized Bavarian Nordic’s readiness to collaborate with the international community to protect lives and curb the outbreak. The company is increasing its production capacity to meet the demand, aiming to supply 10 million new doses by the end of 2025.

Beyond manufacturing and distribution, Bavarian Nordic is also looking to extend the use of Jynneos to younger populations. The company recently secured funding to conduct a clinical trial of the vaccine among children in Africa.

In summary, Bavarian Nordic is rapidly responding to the global mpox situation by securing substantial supply deals, ramping up production, and expanding its vaccine's reach. The increased demand for Jynneos and the company's proactive approach have not only bolstered its financial outlook but also positioned it as a key player in the fight against mpox.