Bavarian Nordic is Planning a Rights Issue of DKK 250-300 Million.
The Company Has Convened an Extra
(Thomson Reuters ONE) - Kvistgård, Denmark, December 1, 2009 - Bavarian Nordic A/S (OMX:BAVA) has today convened an Extraordinary General Meeting that willtake place on December 18, 2009. In that respect, the board hasproposed to extend the current authorisation to increase thecompany's share capital with the purpose of carrying out a rightsissue with pre-emptive rights for existing shareholders. The rightsissue is expected to be completed in the beginning of 2010 inconsideration of market conditions among other things.In order for Bavarian Nordic to gain the independence to execute itsactivities within biodefence and cancer, the company has exploredavailable options for securing an optimum financial position.Subsequent to discussions with selected shareholders, the company hasconcluded a rights issue to be the most suitable approach. Thecompany expects proceeds from the rights issue in the level of DKK250-300 million.The use of proceeds will ensure the continued momentum in theproduction of IMVAMUNE® smallpox vaccines to ensure speedy andsufficient delivery under the RFP-3 order for 20 million doses oncedelivery allowance is granted by the US authorities. Once deliveryallowance is granted, Bavarian Nordic intends to scale up itsproduction frequency. In that respect, the company's bank hasnotified Bavarian Nordic its willingness to discuss the establishmentof facilities for financing of operations going forward.Meanwhile, Bavarian Nordic will gradually continue its preparationsfor Phase III studies with PROSTVAC(TM), a therapeutic vaccinecandidate for patients suffering from advanced prostate cancer.According to plan, an end of Phase II meeting will be held with theU.S. Food and Drug Administration (FDA) in January 2010 in order todiscuss the design of the Phase III studies. Subsequently, thecompany expects to obtain a Special Protocol Assessment (SPA) whichspecifies the requirements for target fulfilment in Phase III.The strategy for the Phase III development of PROSTVAC(TM) will bedetermined after the end of Phase II meeting with the FDA and thesubsequent SPA agreement.Provided that the rights issue is completed with the expectedproceeds generated, and that the RFP-3 contract will be fulfilledaccording to plan, Bavarian Nordic expects to have sufficient fundsfor its operations until the end of 2012, whereupon the companyexpects its cash preparedness to cover the operational needs for anorder-producing company.Bavarian Nordic has engaged Nordea Markets (Division of Nordea BankDanmark A/S) and SEB Enskilda, Skandinaviska Enskilda Banken AB(publ), Copenhagen Branch as financial advisors in the rights issue.Status of the RFP-3 contractBavarian Nordic is currently awaiting delivery allowance from the USauthorities in order to initiate the delivery of 20 million doses ofIMVAMUNE® under the RFP-3 contract.Following the FDA inspection of the IMVAMUNE® manufacturingfacilities in the spring 2009, Bavarian Nordic has made progress inthe implementation of the actions as required due to observationsmade by the FDA. The company expects to finalise its responses to theFDA during this week and subsequently will await the final acceptancefrom the FDA. Consequently, the company maintains its expectations toinitiate delivery of IMVAMUNE® before the end of first half 2010.To date, Bavarian Nordic has fulfilled a number of importantmilestones in the contract, including the completion of the Phase IIdevelopment of IMVAMUNE® and submission of data that support thepotential use of IMVAMUNE® in a declared emergency. The fulfilment ofthese milestones has triggered USD 125 million in milestone payments.Once delivery of IMVAMUNE® is expectedly initiated, the remainder ofthe contract, with a total value of USD 500 million, will be invoicedproportionally to the deliveries. However, a small part of the totalcontract sum, corresponding to 10%, is payable only upon licensing ofthe vaccine with the FDA.Provided that the delivery allowance will be granted no later thanduring first half of 2010, Bavarian Nordic expects to deliver 4-5million doses of IMVAMUNE® before the end of 2010. The remainingdoses are expected to be evenly delivered in 2011 and 2012.The company's expectations for the financial result for 2009 areunchanged compared to the guidance in third quarterly report.Asger AamundChairman of the BoardContactAnders Hedegaard, President & CEO. Phone +45 23 20 30 64http://hugin.info/100065/R/1358240/330641.pdfThis announcement was originally distributed by Hugin. The issuer is solely responsible for the content of this announcement.
Datum: 01.12.2009 - 08:05 Uhr
Sprache: Deutsch
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The Company Has Convened an Extra"
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