WASHINGTON, D.C., October 9 /PRNewswire-FirstCall/ -- Bavarian Nordic, the Danish-based international biopharmaceutical company, has received permission from the Department of Health and Human Services (HHS) to invoice an advance payment of $50 million as allowed under the recent contract (RFP-3)* to manufacture and deliver 20 million doses of the company's, IMVAMUNE(R) smallpox vaccine.
HHS approved the advance payment because Bavarian Nordic fulfilled a number of significant contract milestones relating to the build-up of security systems, establishment of various procedures and training, validation of equipment and processes, and a Phase II study report for preparing the design of Phase III studies.
Anders Hedegaard, President & CEO of Bavarian Nordic, said: "We are very satisfied that we have already fulfilled several significant milestones as agreed with the Department of Health and Human Services. With the advance payment and the future milestone payments, we have created a solid financial base for our further development."
The advance payment income will be recognised as revenue in the company's financial statements as the vaccines are delivered. Delivery will start once an Emergency Use Authorization for IMVAMUNE(R) is granted. Payment is dependent on Bavarian Nordic's continued fulfilment of the conditions of the contract.
In addition to the advance payment of $50 million, Bavarian Nordic expects in 2007 to receive two additional milestone payments of $25 million each for fulfilling activities related to these milestones. The advance payment does not affect the previously announced guidance for the company's 2007 result.
IMVAMUNE smallpox vaccine contract
In June 2007, HHS awarded Bavarian Nordic a Bioshield contract to
manufacture and deliver IMVAMUNE, a next-generation smallpox vaccine to the
strategic national stockpile. The contract calls for the registration of
IMVAMUNE as a safe and effective smallpox vaccine
|SOURCE Bavarian Nordic A/S|
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