Why Emergent Bio (EBS) Shares Are Gaining Today - Emergent BioSolutions (NYSE:EBS), Bavarian Nordic (OTC:BVNRY), Bavarian Nordic (OTC:BVNKF)

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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Monkeypox Vaccine Maker Bavarian Nordic Bets $380M On Emergent Bio's Travel Vaccines

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