Bavarian Nordic gets COVID-19 funding from the Danish Health Ministry

Denmark-based Bavarian Nordic’s (OMX: BAVA) shares were up 11.9% at 312.20 Danish kroner by mid-afternoon, as it announced today that the company has entered a funding agreement with the Danish Ministry of Health to further advance the development of ABNCoV2, Bavarian’s COVID-19 vaccine candidate.

The agreement is valued at up to 800 million kroner ($125.6 million) and aims to support the completion of the development towards licensure of ABNCoV2 as a booster vaccine, which could help strengthen the reliability and security of supply of COVID-19 vaccines and address the need for revaccination of the population.

Under the accord, Bavarian Nordic is entitled to an upfront payment of 80 million kroner, in addition to payments of up to 720 million kroner, which are contingent on reaching a number of predefined milestones including among others completion of the ongoing Phase II trial, Phase III development milestones and milestones related to upscaling of manufacturing for commercial production of the vaccine.