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New Smallpox Vaccine Contract: Five Years in the Making

2 which then resulted in the award of development contracts for Bavarian Nordic from the National Institute of Allergy and Infectious Disease (NIAID).

When the Department of Health and Human Services (HHS) moved in 2005 to begin a public tender process to purchase an MVA-based smallpox vaccine, Bavarian Nordic was quick to respond. This week, after two years of detailed review, HHS announced that it was awarding a contract to Bavarian Nordic for the manufacture and delivery of Imvamune(R) worth an initial $500 million with contract options that, if exercised, would extend the value to $1.6 billion.

The award highlights a success for the U.S. government's biodefense preparedness programs. This contract is the first time that HHS has utilized all of its existing and newly-acquired payment authorities (Advance Payment, Milestone Advance Payment, and Performance Based Payment) as granted under the original Bioshield legislation (2004), the recently-enacted Pandemic All Hazards Preparedness Act (2006) and the FAR subpart 32.10. Under the contract, Bavarian Nordic will receive $150 million in payments of which $125 million in advance payments will be paid out over the first two years of the contract as milestones are achieved, and $25 million paid during the licensure process.

In addition to its MVA-based smallpox vaccine, Bavarian Nordic is also active in a number of other fields including cancer immunotherapy with a subsidiary in California, BN Immunotherapeutics, Inc., to research and develop MVA-based vaccines against cancer.


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