Edition:
India

Bavarian Nordic Agrees To Buy Two Vaccines From GlaxoSmithKline


Monday, 21 Oct 2019 

Oct 21 (Reuters) - Bavarian Nordic A/S ::REG-BAVARIAN NORDIC ANNOUNCES A TRANSFORMATIVE ACQUISITION OF TWO ESTABLISHED COMMERCIAL VACCINES FROM GLAXOSMITHKLINE.REG-BAVARIAN NORDIC ANNOUNCES A TRANSFORMATIVE ACQUISITION OF TWO ESTABLISHED COMMERCIAL VACCINES FROM GLAXOSMITHKLINE.UPFRONT PAYMENT TO BE FINANCED THROUGH EXISTING CASH AND BRIDGE FINANCING, TO BE REPAID BY A PLANNED FULLY UNDERWRITTEN RIGHTS ISSUE IN H1 2020.UPDATES ON 2019 FINANCIAL GUIDANCE.ACQUISITION PRICE OF UP TO APPROX. EUR 796 MILLION INCLUDING AN UPFRONT PAYMENT OF APPROX. EUR 301 MILLION.ADDITIONAL PAYMENTS OF UP TO EUR 495 MILLION ARE CONDITIONAL UPON ACHIEVEMENT OF MILESTONES DURING TRANSITION PERIOD OF 2020-2025.OPERATING PROFIT MARGIN (EBITDA) FROM COMBINED BUSINESS FROM THESE TWO NEW PRODUCTS ARE EXPECTED TO INCREASE GRADUALLY FROM 30-40% TO ABOVE 50% UPON FULL TRANSITION.TRANSACTION DOES NOT AFFECT COMPANY'S REVENUE AND OPERATING RESULT FOR 2019.RABIPUR/RABAVERT IS EXPECTED TO DELIVER LOW TO MID SINGLE-DIGIT ANNUAL SALES GROWTH AND ENCEPUR MID TO HIGH SINGLE-DIGIT ANNUAL SALES GROWTH..UPFRONT CASH PAYMENT TO GSK WILL DRAW ON COMPANY'S EXISTING CASH, THUS LOWERING EXPECTED CASH PREPAREDNESS AT YEAR-END FROM DKK 1,600 MILLION (EUR 214 MILLION) TO APPROXIMATELY DKK 1,000 MILLION (EUR 134 MILLION).WILL ASSUME FULL SALES AND MARKETING RESPONSIBILITY UPON CLOSING, I.E. IMMEDIATELY FROM 2020.WILL PURCHASE REMAINING INVENTORY OF VACCINES FROM GSK AT DIFFERENT LEVELS IN SUPPLY CHAIN..