English
Published: 2015-03-11 07:37:52 CET
Bavarian Nordic A/S
Annual report/ annual accounts
Bavarian Nordic Announces 2014 Full Year Results
KVISTGAARD, Denmark, March 11, 2015 - Bavarian Nordic A/S (OMX: BAVA,
OTC:
BVNRY) today published its 2014 annual report. Revenue was DKK 1,217
million /
USD 175 million (DKK 1,213 million / USD 175 million in 2013). The
Group
recorded an EBIT of DKK 17 million / USD 2 million (DKK 33 million / USD
5
million in 2013) and a net profit of DKK 26 million / USD 4 million (DKK
47
million loss / USD 7 million loss). Revenue and results were in line with
the
expectations for the year. At year-end 2014, the cash preparedness was
DKK
1,000 million / USD 144 million (DKK 652 million / USD 94 million as of
31
December 2013).

For 2015, Bavarian Nordic expects revenue at the level of
DKK 1,000 million /
USD 144 million and a break even result before interest and
tax (EBIT). The cash
preparedness at year-end is expected to be in the level of
DKK 1,100 million /
USD 159 million.

Danish kroner (DKK) is the Company's
functional currency. For convenience, the
Company presents selected figures in
USD above. These are based on a USD/DKK
exchange rate of 6.9395, which is the
official exchange rate of Danmarks
Nationalbank, the central bank of Denmark,
on March 10, 2015.

Consolidated key financial figures are found at the end of
this announcement.
The full financial statements for 2014 are available in the
annual report which
can be downloaded from the Company's website:
www.bavarian-nordic.com.

Paul Chaplin, President & CEO of Bavarian Nordic,
said: "2014 was a strong year
for Bavarian Nordic where we met our financial
and operational targets and even
exceeded our own expectations, as new
opportunities surfaced during the year.
Our technology has received strong
recognition by the closing of important
deals, with Johnson & Johnson and
Bristol-Myers Squibb, two industry leaders, in
each of our business areas. We
are in a transitional phase, preparing for
expanding the pipeline in areas of
unmet medical needs, while also continuing
our efforts to expand our
manufacturing capabilities that allows us to deliver
according to current and
future supply agreements."

Significant achievements in 2014 and up to the
reporting date

  * The U.S. Government exercised an option valued at USD 118
million for
    additional 4 million doses of IMVAMUNE smallpox vaccine,
bringing the total
    number of doses delivered to-date to 28 million.
  * The
U.S. Government also exercised an option valued at almost USD 22 million
   
under the existing development contract for freeze-dried IMVAMUNE to fund
   
the transfer of the validated manufacturing process to a commercial
   
manufacturing line with a larger capacity.
  * Contracts were signed with the
Canadian Government for the delivery of more
    than 60,000 doses of IMVAMUNE
with options for up to an additional 450,000
    doses.
  * A licensing and
supply agreement was entered with Janssen on MVA-BN® Filo
    vaccine, which is
being investigated in a prime-boost regimen with Janssen
    AdVac® vaccine
against Ebola. The agreement has a potential value of up to
    USD 187 million
and includes an equity investment in Bavarian Nordic.
    Janssen furthermore
obtained an exclusive option to collaborate on MVA-BN in
    three additional
infectious disease targets.
  * A first-in-human trial investigating MVA-BN
Filo as an Ebola vaccine was
    initiated.
  * Enrollment was completed in the
phase 3 study of PROSTVAC prostate cancer
    immunotherapy. 1,298 patients
were enrolled in more than 200 centers across
    15 countries.
  * Two new
programs were added to the pipeline, both sponsored by our partner,
    the
National Cancer Institute: A phase 2 combination study of CV-301
   
immunotherapy and BCG (Bacillus Calmette-Guerin) treatment was initiated in
   
patients with bladder cancer and a phase 1 study of MVA-BN Brachyury (a
   
tumor-associated antigen which is overexpressed in major solid tumor
   
indications) was initiated in patients with advanced cancer
  * In February
2015, updated long-term survival data from an NCI sponsored
    combination
study of PROSTVAC and Yervoy were presented. For patients
    receiving
PROSTVAC and high doses of Yervoy, a median overall survival of
    37.2 months
was shown, compared to a predicted survival of 18.5 months.
    Furthermore,
approximately 20% of these remain alive at 80 months.
  * In March 2015,
Bavarian Nordic entered into an exclusive agreement with
    Bristol-Myers
Squibb for PROSTVAC, under which the Company could receive up
    to USD 975
million, inclusive of USD 60 million upfront and potential
    exercise
payment; potential development, regulatory and commercialization
    milestone
payments; additional tiered double-digit royalties on future
    sales. In
addition, the companies will collaborate to explore the
    combination of
PROSTVAC with agents from Bristol-Myers Squibb's immune-
    oncology
portfolio.
  * Asger Aamund, founder and chairman of the board since the
inception of
    Bavarian Nordic in 1994 stepped down. Gerard van Odijk, was
elected the new
    chairman of the board. He has served as member of the board
since 2008.
  * Paul Chaplin, Ph.D. was appointed President & CEO of Bavarian
Nordic. He
    succeeded Anders Hedegaard who decided to seek new challenges
outside the
    company after 7 years serving as CEO. Paul Chaplin has been
with Bavarian
    Nordic for more than 15 years, the last 10 years as part of
the executive
    management team.

Selected upcoming milestones

  *
Manufacture and deliver MVA-BN Filo vaccine to Janssen (targeting 2 million
   
doses to contribute to the prime-boost regimen) (2015)
  * Initiation of Phase
2 and Phase 3 clinical trials of the Ebola prime-boost
    vaccine regimen
  *
Potential new orders for MVA-BN Filo
  * Potential expanded collaboration with
Janssen on additional infectious
    disease targets
  * Complete Phase 2 study
of freeze-dried IMVAMUNE to support a pre-EUA
    submission (requirement for
stockpiling) (2015)
  * Complete transfer of validated freeze-dried
manufacturing process to a
    commercial scale facility (2015)
  * Secure
IMVANEX/IMVAMUNE orders from rest of world
  * Investigational New Drug
submission for MVA-BN RSV followed by initiation of
    Phase 1 study (H1,
2015)
  * Advance clinical studies exploring the therapeutic potential of
PROSTVAC in
    combination with Yervoy and other potential checkpoint
inhibitors as part of
    the clinical collaboration with Bristol-Myers Squibb

 * Finalize validation of the PROSTVAC commercial manufacturing process and
   
prepare launch material
  * Interim analyses of the PROSTVAC Phase 3 clinical
trial

Webcast and conference call
The Company will host a conference call
today at 2.00 pm CET (9.00 am EDT).
President and CEO, Paul Chaplin will
present the annual results followed by a
Q&A session with participation of the
Company's executive management. Dial-in
numbers for the conference call are:
Denmark: +45 32 72 80 18, UK: +44 (0)
844 571 8957, USA: +1 866 682 8490. A
webcast of the conference call will be
broadcast simultaneously at
http://www.bavarian-
nordic.com/investor/events.aspx?event=4207. On this page,
the accompanying
presentation will be available prior to the conference
call.

Contacts
Rolf Sass Sørensen, Vice President Investor Relations (EU).
Phone
+45 61 77 47 43
Seth Lewis, Vice President Investor Relations (US). Phone
+ 1 978 341 5271

About Bavarian Nordic
Bavarian Nordic is an international
biotechnology company developing and
manufacturing novel cancer immunotherapies
and vaccines for infectious diseases.
Lead product candidates are PROSTVAC, an
immunotherapy product candidate for
advanced prostate cancer that is the
subject of an ongoing pivotal Phase 3
clinical trial, and IMVAMUNE®, a
non-replicating smallpox vaccine candidate in
Phase 3 development, which is
being developed and supplied for emergency use to
the U.S. Strategic National
Stockpile under a contract with the U.S. Government.
The vaccine is approved in
Canada under the trade name IMVAMUNE and in the
European Union under the trade
name IMVANEX. Bavarian Nordic's shares are listed
on NASDAQ OMX Copenhagen
under the symbol BAVA (Reuters: BAVA.CO, Bloomberg:
BAVA.DC). The company has a
sponsored Level 1 ADR program listed in the US (OTC)
under the symbol BVNRY.
For more information, visit 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. 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.

Consolidated Key Figures

DKK million                              2014  
  2013    2012     2011    
     2010
---------------------------------------------------------------------------
     -----


Income
statement

Revenue                               1,216.8  1,212.5 1,016.6   
523.6    314.1

Production costs                        495.1    484.7   513.6 
  403.4    444.5

Research and development costs          478.9    496.6 
 340.1    261.7    188.6

Distribution and administrative
costs                
                  226.1    197.8   194.6    166.8    155.1

Income before
interest and tax
(EBIT)                                   16.7     33.4  (31.7)
 (308.3)  (474.1)

Financial items, net                     47.7   (27.2) 
(17.0)     11.9    (9.4)

Income before company tax                64.4    
 6.2  (48.7)  (296.4)  (483.4)

Net profit for the year                  25.9 
 (46.7) (240.0)  (268.4)  (389.9)



Balance sheet

Total non-current assets   
            568.1    551.8   644.3    865.2    850.6

Total current assets     
            1,319.1    900.4   894.9  1,111.4    616.5

Total assets           
              1,887.3  1,452.2 1,539.2  1,976.6  1,467.1

Equity               
                1,252.1    976.3   999.7  1,207.6    810.4

Non-current
liabilities                  51.9     86.7    54.2    105.4    106.5

Current
liabilities                     583.3    389.3   485.3    663.6  
 550.2



Cash Flow Statement

Securities, cash and cash
equivalents           
                 979.7    532.1   549.9    584.0    355.7

Cash flow from
operating activities     338.7    147.1    20.1  (375.2)  (239.9)

Cash flow
from investment activities  (503.7)  (146.5)    71.0  (261.8)   (45.8)

-
Investment in intangible assets      (53.6)  (111.0)  (24.3)   (16.5) 
 (16.2)

- Investment in property, plant and
equipment                         
    (52.4)   (44.4)  (20.9)   (31.2)   (45.7)

Cash flow from financing
activities     216.2    (7.1)   (9.6)    642.4    471.0



Financial Ratios (in
DKK) (1))

Earnings (basic) per share of DKK 10      1.0    (1.8)   (9.2) 
 (12.1)   (25.7)

Net asset value per share
(historical)                       
     45.2     37.4    38.3     46.3     62.5

Net asset value per share
(adjusted)
(2))                                     45.2     35.3    36.1   
 43.6     29.3

Share price at year-end (historical)      198       89      50 
     38      245

Share price at year-end (adjusted)
(3))                      
               198       89      50       38      190

Share price/Net asset
value per
share (historical)                        4.4      2.4     1.3    
 0.8      3.9

Share price/Net asset value per
share (adjusted) (2) +) (3))    
         4.4      2.5     1.4      0.9      6.5

Number of outstanding shares
at
year-end                               27,671   26,094  26,094   26,094  
12,962

Equity share                              66%      67%     65%      61%
     55%

Number of employees, converted to
full-time, at year-end             
      422      426     450      439      402


1) Earnings per share (EPS) are
calculated in accordance with IAS 33 "Earning
per share". Other financial
ratios have been calculated in accordance with
"Anbefalinger og Nøgletal 2010"
(Recommendations and Financial ratios 2010)
2) Due to issue of new shares in
2014, net asset value per share for 2010-2013
have been recalculated based on
outstanding shares at year-end 2014
3) Year-end share price for 2010 has been
adjusted for rights issue in May
2011








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201505uk.pdf
Bavarian Nordic Annual Report 2014.pdf