Bavarian Nordic Secures $97M U.S. Government Contract for Freeze-Dried Smallpox Vaccines
Event summary
- Bavarian Nordic awarded $97M contract options by BARDA for production and supply of freeze-dried JYNNEOS smallpox vaccines.
- Contract covers manufacturing of bulk vaccine and supply of 11.5 million doses to be delivered in 2027.
- Revenue guidance for 2026 upgraded to DKK 5,500-5,700 million, with EBITDA margin expected to reach ~28%.
- Freeze-dried formulation approved by FDA in March 2025, offering advantages in transportation, storage, and shelf life.
The big picture
This contract marks a significant milestone in the decade-long partnership between Bavarian Nordic and the U.S. government, underscoring the strategic importance of biodefense preparedness. The shift from liquid-frozen to freeze-dried formulations aligns with broader industry trends toward improving vaccine logistics and storage capabilities. The upgraded financial guidance reflects the growing demand for public health preparedness solutions, particularly in the wake of recent monkeypox outbreaks.
What we're watching
- Execution Risk
- Whether Bavarian Nordic can deliver the remaining 11.5 million doses on time and meet the extended shelf-life requirements.
- Market Dynamics
- How the upgraded financial guidance will impact investor sentiment and stock performance.
- Strategic Partnerships
- The pace at which Bavarian Nordic can secure additional contracts with other governments for the freeze-dried formulation.
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