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Bavarian Nordic Update - 2007 Annual Results, IMVAMUNE(R) Delivery Contract, Strategy Process
Date:4/2/2008

ata package is available - expected late in 2008 - and has been accepted by the US health authorities, Bavarian Nordic can begin delivering the vaccine to the US national stockpile and thus begin invoicing.

In 2007, Bavarian Nordic refocused its HIV strategy. Against a backdrop of recommendations from international scientific committees, data from the nef program has been incorporated into the multiantigen program, which thus continues to be our future HIV project.

Important progress has also been achieved in our cancer research as Phase I/II studies of the breast cancer vaccine candidate were commenced.

Financial Review 2007

Unless otherwise stated, the financial review is based on the consolidated financial information for the year ended 31 December 2007 as included in the Annual Report 2007 with comparative figures for 2006 in brackets. The accounting policies are unchanged from the Annual Report for 2006.

A pre-tax loss of DKK 50.5 million (DKK 204.8 million) was recorded for the year, which was in line with our guidance in the nine-month interim report published on 6 November 2007.

The increase in revenue and earnings in 2007 was achieved as the Group completed two milestones of USD 25 million each as part of the RFP-3 contract awarded in June 2007.

The Group's free net liquidity was strengthened in 2007 and stood at DKK 833.6 million at the end of the year (DKK 217.7 million). The improvement was attributable to a rights issue made in March 2007 (net proceeds of DKK 443.5 million), the exercise of warrants by employees and management (net proceeds of DKK 47.7 million), and advance and milestone payments received under the RFP-3 contract (USD 100 million). By end of February 2008 the free net liquidity had increased to DKK 902 million.

Equity was DKK 1,217.7 million at 31 December 2007 (DKK 691.4 million).

Outlook for 2008

For 2008, Bavarian Nordic expects revenue in the region of DKK 180 mil
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SOURCE Bavarian Nordic A/S
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