- Bavarian Nordic A/S BVNRY has agreed to acquire two marketed travel vaccines, Vivotif for the prevention of typhoid fever and Vaxchora against cholera, from Emergent BioSolutions Inc EBS.
- The company will also acquire a Phase 3 vaccine candidate to prevent the Chikungunya virus.
- The deal consideration of $380 million includes $270 million in an upfront payment and up to $110 million in future conditional milestone payments.
- The acquisition also includes facilities and key personnel related to the acquired assets.
- Also Read: 'Waiting Game Continues' In Emergent BioSolutions, Analysts Cut Price Target.
- A late-stage vaccine candidate targeting Chikungunya with expected Phase 3 read-out in the second half of 2023 and projected launch in 2025.
- Approximately 280 current Emergent employees are expected to join Bavarian Nordic as part of the transaction.
- The acquisition enables the expansion of Bavarian Nordic's US commercial sales, marketing, and distribution setup and increased scale in more European markets where the company is not present today.
- The acquired business is expected to add approximately DKK 200 million to revenue and a loss of approximately DKK 400 million to EBITDA, not included in the previously announced financial guidance for 2023.
- The expected loss is due to investments in the Chikungunya Phase 3 program and the inclusion of necessary one-off integration costs.
- This transaction is expected to close in the first half of 2023.
- Price Action: EBS shares are up 10.48% at $14.65 during the premarket session on the last check Wednesday.
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