Bavarian Nordic is experiencing a robust recovery in the vaccine sector, reporting a remarkable year-over-year revenue increase of 62% in Q1 2024, totaling DKr1.3 billion ($200 million). This surge in financial performance comes after a challenging period for the company, which had faced significant drops in revenue during Q3 2024. Nevertheless, Bavarian Nordic is maintaining its guidance for the full year, projecting revenues between DKr5.7 billion and DKr6.7 billion.
Following the positive announcement on May 9, shares surged by 7% to DKr167.15 at market opening. Critical to this turnaround is the booster in sales from the company’s travel health segment, which saw a 52% rise to DKr680 million, primarily driven by the sales of its rabies vaccine, Rabipur, and the tick-borne encephalitis vaccine, Encepur.
The approval of the chikungunya vaccine, Vimkunya, in both the US and UK earlier this year has positioned Bavarian Nordic favorably in the market. While this vaccine caters to individuals aged 12 and older, its competitor, Valneva’s Ixchiq, is currently only approved for adults. Vimkunya’s anticipated contribution to revenue is expected to begin in Q2, as it launched in the US in March and is expected to enter European markets in early 2025.
In addition, the company’s public preparedness sector, including the smallpox/mpox vaccine Jynneos, witnessed an impressive 83% revenue increase to DKr629 million, surpassing initial expectations mainly due to advanced orders. A significant regulatory milestone was achieved when the US FDA approved a freeze-dried formulation of Jynneos, enhancing its ongoing contract with the US government, which now includes exercised options valued at $144 million.
The broader vaccine landscape is currently under scrutiny, particularly in the US where vaccine skepticism has been rising. However, a recent initiative from the US Department of Health and Human Services aims to instill confidence in the vaccine sector, allocating $500 million to expedite the development of universal vaccines designed to target viral pandemics.
Bavarian Nordic’s impressive performance indicates a strong market recovery and the potential for ongoing growth, especially as it continues to innovate and expand its vaccine offerings. Positive steps taken by health authorities to enhance vaccine development only add to the optimism surrounding the future of vaccinations.