With record-breaking mpox vaccine sales, Bavarian Nordic buys trio of shots from Emergent for $270M cash

15 Feb 2023
endpts.com
VaccineAcquisition
Bavarian Nordic is putting some of its mpox vaccine windfalls to use, wagering $270 million in cash to acquire three travel vaccines — two of which are already on the market — from Emergent BioSolutions. It’s not just the portfolio that Bavarian Nordic is getting. The deal, which adds up to $380 million when you take into account $110 million in milestones, will also give Bavarian Nordic a set of US-based R&D facilities, a Swiss-based biologics manufacturing site, and commercial operations in both the US and the EU, complete with a specialty salesforce. President and CEO Paul Chaplin describes the deal as one step in realizing his vision of making Bavarian Nordic one of the largest pure-play vaccine companies. “Travel vaccines are seeing a rebound after the COVID-19 pandemic and the expanded portfolio allows us to further explore synergies in our commercial presence across key markets,” he said in a statement. “Likewise, the addition of further manufacturing capabilities provides us with greater flexibility and scale in production, as we continue our preparations for the launch of several new products over the next few years.” The Dutch company counted record-breaking revenue of about DKK 6 billion, or about $863 million, for 2022, thanks to a burst in orders for its smallpox and mpox (formerly monkeypox) vaccine, Jynneos. Amid a global outbreak, Jynneos was one of the only interventions available and often the preferred vaccine; at one point, Bavarian Nordic reported fielding “overwhelming interest” for it. For Emergent, the deal comes at a time in which the company has decided to focus on its medical countermeasure business, including its anthrax products and smallpox vaccine. Around 280 of its employees will join Bavarian Nordic as the new owner takes over a manufacturing site in Bern, Switzerland, and development facilities in San Diego, it said in a press release. Bavarian Nordic will grab a pair of FDA- and EU-approved oral vaccines that are already marketed in more than 25 countries: Vivotif for the prevention of typhoid fever, and Vaxchora for the prevention of cholera caused by Vibrio cholerae serogroup O1. Emergent had acquired those vaccines as part of its 2018 all-cash buyout of specialty vaccine maker PaxVax, for which it paid — coincidentally — $270 million. While Emergent had predicted that those products would generate $70 million to $90 million in 2019, it did not break out their sales individually that year. Then the Covid-19 pandemic hit, crushing sales of travel vaccines. Bavarian Nordic said the deal should add about DKK 200 million (or $28.7 million) to 2023 revenue. Also heading to Bavarian Nordic is a late-stage vaccine candidate targeting the chikungunya virus, with a Phase III readout expected later in 2023 and a launch projected in 2025. The companies noted that R&D facilities that Emergent is handing over are all related to the development of this candidate. That program will also entail investments and integration costs that may lead to a loss of DKK 400 million (more than $57 million), Bavarian Nordic added.
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