Bavarian Nordic A/S - Interim Report for the Period 1 January to 30...(irst vaccination with the MVA-BN(R) vacc...)

Following these encouraging results Bavarian Nordic plans to conduct a Phase I study in children in the second half of 2008.

Tropical diseases

For Bavarian Nordic's early-stage projects in tropical diseases, discussions with a potential external partner regarding out-licensing are progressing.

Financial statement for the period (1 January - 30 June 2008, un-audited)

Comparison figures for the same period 2007 are stated in parenthesis.

The revenue is DKK 23 million (DKK 51 million). The revenue derives from sale of IMVAMUNE(R) and from the RFP-2 contract with the U.S. health authorities. The activity of this development contract is lower compared to the same period last year.

Production costs are DKK 39 million (DKK 37 million). The production costs are higher due to the start-up of routine production at the Kvistgaard facility which proceeds according to schedule.

The Group's research and development costs are DKK 72 million (DKK 102 million) excluding development costs from the RFP-3 contract of DKK 24 million, which are capitalised as intangible assets under construction.

Sales and administrative costs are DKK 47 million (DKK 44 million).

Income before tax is a deficit of DKK 119 million (deficit of DKK 128 million).

Result for the period is a deficit of DKK 96 million (deficit of DKK 117 million)

The production of IMVAMUNE(R) is progressing according to plans. Inventory of doses to be delivered in 2009 has increased by DKK 36 million in the first six months of 2008.

As of 30 June 2008 the Group's net free liquidity are DKK 882 million (DKK 574 million). Cash flow from operations is positive with DKK 12 million (DKK -123 million). Cash flow from investment activities is DKK -33 million (DKK -105 million) and cash flow from financing activities is DKK -8 milli
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