Page 1 of 20
Bavarian Nordic A/S
Company Announcement
Bavarian Nordic Announces First Half 2021 Results
COPENHAGEN, De nmark , August 25, 2021 – Bavarian Nordic A/S (OMX: BAVA) announced today its interim financial results and business
progress for the first half of 2021 and releases its financial calendar for 2022.
Paul Chaplin, President & Chief Executive Officer of Bavarian Nordic said: “We are very pleased to confirm the successful execution of our
commercial strategy with nearly 30 Rabipur/RabAvert and Encepur markets now transferred to Bavarian Nordic. Our objective during this
transition was to stop the historical market share losses before the acquisition of these products, start gaining more ground and increase the
awareness of Bavarian Nordic among health care professionals and we are pleased that we today can tick all these boxes, despite that the
markets are still impacted by COVID-19. Both the rabies and TBE markets are still suffering from a low level of international travel and limited
availability of physicians for non-COVID vaccinations in certain markets and due to this alone, we are firming up our financial guidance for
2021 to reflect the lower end of the previously guided intervals.
So far this year, we also received new orders for our Ebola and smallpox vaccines and saw very important advancements in our pipeline assets
with our promising COVID-19 vaccine candidate, ABNCoV2 entering Phase 2 after reporting highly promising clinical results. The recent
agreement with the Danish Ministry of Health to provide aid for developing ABNCoV2 is a strong recognition of the technology and Bavarian
Nordic to develop a highly promising general booster against COVID-19. With this funding, together with our existing commitment to fund the
program to the end of Phase 2, we have sufficient funds to execute the existing plans to develop ABNCoV2 through to licensure. We look
forward to reporting the Phase 2 results for ABNCoV2, as well as additional pivotal results from the RSV human challenge trial later this year.”
Financial highlights
• Total revenue in first half year was DKK 905 million comprised of DKK 877 million from combined product sales and DKK 28 million
from contract work.
• Revenue in second quarter totaled DKK 370 million comprised of DKK 146 million from sale of Encepur, DKK 127 million from sale of
Rabipur/RabAvert, DKK 89 million from sale of Mvabea to Janssen and DKK 8 million from contract work.
• EBITDA in first half year was a loss of DKK 8 million.
• Strong cash position of DKK 2,208 million at the end of the first half, excluding unutilized credit facilities of DKK 243 million and
after deduction of repo pledged securities.
• Full-year guidance maintained at the lower end of the previously guided ranges, due to the continued COVID-19 impact on the TBE
and rabies markets. Thus, revenue of approximately DKK 1,900 million, EBITDA of approximately DKK 100 million and securities,
cash and cash equivalents at year-end of approximately DKK 1,400 million are expected.
DKK million
Q2 2021
Q2 2020
H1 2021
H1 2020
2021 Guidance
Revenue
370
700
905
1,065
~1,900
EBITDA
(9)
197
(8)
839*
~100
Securities, cash and cash equivalents
2,208**
2,380
2,208**
2,380
~1,400
* EBITDA in H1 2020 was positively impacted by the sale of the Priority Review Voucher (DKK 628 million).
** Repo pledged securities deducted.
Events in the second quarter
• In April, new preclinical results for the COVID-19 vaccine candidate, ABNCoV2 were announced, confirming its potential to offer
broad protection against variants of the SARS-CoV2 virus.
• In April, Bavarian Nordic received a new Ebola supply order from Janssen, valued at approximately USD 28 million. Manufacturing
and delivery will occur during 2021. The Johnson & Johnson Ebola vaccine regimen, which includes Mvabea
®
from Bavarian Nordic
also received Prequalification from the World Health Organization, which along with the July 2020 approval from the European
Commission, will help accelerate its registration in countries where Ebola is a persistent public health threat.
• In May, the US government exercised the final USD 12 million option remaining under the USD 202 million order for JYNNEOS
®
awarded in April 2020.
• In May, Bavarian Nordic entered an agreement with Dynavax on marketing and distribution of their HEPLISAV B
®
hepatitis B vaccine
in Germany
Bavarian Nordic Announces First Half 2021 Results Page 2 of 20
Company Announcement no. 28 / 2021
Events after the reporting date
• In August, Bavarian Nordic entered a funding agreement with the Danish Ministry of Health, under which the Company will be
eligible to receive up to DKK 800 million to further advance the development of ABNCoV2 as a booster vaccine for COVID-19.
• In August, Bavarian Nordic initiated a Phase 2 clinical trial of ABNCoV2 to investigate the vaccine’s potential as a universal booster
vaccine for individuals with existing immunity from prior COVID-19 disease or vaccination.
• In August, initial results from the first-in-human trial of ABNCoV2 were reported, showing that the vaccine candidate was well
tolerated and induced a strong antibody response, superior to current approved vaccines. Importantly, a strong neutralization
response was demonstrated against SARS-CoV2 variants, including the Delta variant.
• The Company has today published its financial calendar for 2022, which is available on page 8 in this report.
Conference call and webcast
The management of Bavarian Nordic will host a conference call today at 2 pm CET (8 am EST) to present the interim results followed by a
Q&A session. A listen-only version of the call can be accessed via https://www.bavarian-nordic.com/investor/events.aspx?event=6096. To
join the Q&A session, use one of the following dial-in numbers: D enmark : +45 32 72 80 42, UK: +44 (0) 844 571 8892, USA: +1 631-510-7495.
Participant code is 8569159.
Contacts
Europe: Rolf Sass Sørensen, Vice President Investor Relations, Tel: +45 61 77 47 43
US: Graham Morrell, Paddock Circle Advisors, graham@paddockcircle.com, Tel: +1 781 686 9600
Company Announcement no. 28 / 2021
About Bavarian Nordic
Bavarian Nordic is a fully integrated vaccines company focused on the development, manufacturing and comm ercialization of life-savi ng
vaccine, which has been approved by the FDA under the trade name JYNNEOS
®
, also for the protection against monkeypox. The vaccine is
approved as a smallpox vaccine in Europe under the trade name IMVANEX
®
and in Canada under the trade name IMVAMUNE
®
. Our commercial
product portfolio furthermore contains the market-leading vaccine Rabipur
®
/RabAvert
®
against rabies and Encepur
®
against tick-borne
encephalitis. Using our live virus vaccine platform technology, MVA-BN
®
, we have created a diverse portfolio of proprietary and partnered
product candidates designed to save and improve lives by unlocking the power of the immune system, including an Ebola vaccine, Mvabea
®
,
which is licensed to the Janssen Pharmaceutical Companies of Johnson & Johnson. We are also committed to the development of a next
generation COVID-19 vaccine based on an in-licensed capsid virus-like particle technology. The vaccine candidate, ABNCoV2, is currently being
investigated in clinical trials. For more information visit www.bavarian-nordic.com.
Forward-looking statements
This announcement includes forward-looking statements that involve risks, uncertainties and other factors, many of which are outside of our
control, that could cause actual results to differ materially from the results discussed in the forward-looking statements. Forward-looking
statements include statements concerning our plans, objectives, goals, future events, performance and/or other information that is not
historical information. All such forward-looking statements are expressly qualified by these cautionary statements and any other cautionary
statements which may accompany the forward-looking statements. We undertake no obligation to publicly update or revise forward-looking
statements to reflect subsequent events or circumstances after the date made, except as required by law.
Bavarian Nordic Announces First Half 2021 Results Page 3 of 20
Company Announcement no. 28 / 2021
Consolidated Key Figures (unaudited)
DKK thousand
1/4 - 30/6 2021
1/4 - 30/6 2020
1/1 - 30/6 2021
1/1 - 30/6 2020
1/1-31/12 2020
Income statements
Revenue
369,999
699,575
905,252
1,064,980
1,852,383
Production costs
249,301
379,486
626,642
622,570
1,195,094
Sales and distribution costs
47,061
75,017
98,096
149,864
285,783
Research and development costs
97,077
57,978
219,217
124,059
341,420
Administrative costs
83,200
74,881
155,930
126,333
278,145
Other operating income
-
-
-
627,647
627,647
Income before interest and taxes (EBIT)
(106,640)
112,213
(194,633)
669,801
379,588
Financial items, net
(41,493)
(223)
(83,231)
(42,224)
(97,612)
Income before company tax
(148,133)
111,990
(277,864)
627,577
281,976
Net profit for the period
(150,258)
111,275
(281,103)
625,853
277,521
Balance sheet
Total non-current assets
6,426,395
6,354,989
6,378,017
Securities, cash and cash equivalents
2,513,448
2,379,907
1,669,607
Other current assets
1,068,535
507,814
711,440
Total assets
10,008,378
9,242,710
8,759,064
Equity
5,788,550
5,251,149
4,894,353
Non-current liabilities
2,391,883
3,256,008
2,912,401
Current liabilities
1,827,945
735,553
952,310
Cash flow statements
Cash flow from operating activities
(377,266)
672,281
571,911
Cash flow from investment activities
(1,179,496)
(1,944,953)
(1,911,532)
- Investment in intangible assets
(41,633)
(52,000)
(501,877)
- Investment in property, plant and equipment
(171,411)
(66,261)
(204,833)
- Net investment in securities
(965,891)
(1,824,178)
(1,202,145)
Cash flow from financing activities
1,454,979
1,351,992
1,334,874
Financial Ratios
1)
EBITDA after Other operating income
(9,249)
197,413
(7,985)
838,618
739,736
EBITDA before Other operating income
(9,249)
197,413
(7,985)
210,971
112,089
Earnings (basic) per share of DKK 10
(4.6)
12.6
5.1
Net asset value per share
90.7
89.8
83.7
Share price at period-end
259
181
187
Share price/Net asset value per share
2.9
2.0
2.2
Number of outstanding shares at period-end
(thousand)
2)
63,817
58,450
58,450
Equity share
58%
57%
56%
Number of employees, converted to full-time, at
period-end
730
604
690
1)
Earnings per share (EPS) is calculated in accordance with IAS 33 "Earning per share". Other financial ratios have been calculated in accordance with
the guidelines from the Danish Society of Financial Analysts.
2)
Number of shares increased by 5,150,000 at completion of private placement March 2021.
Reconciliation of EBITDA
Income before interest and tax (EBIT)
(106,640)
112,213
(194,633)
669,801
379,588
Depreciation and amortization
97,391
85,200
186,648
168,817
360,148
EBITDA after Other operating income
(9,249)
197,413
(7,985)
838,618
739,736
Bavarian Nordic Announces First Half 2021 Results Page 4 of 20
Company Announcement no. 28 / 2021
Management’s Review
Sales and other income
Comparative figures for 2020 are shown in brackets. Where
market shares are mentioned, these are measured by value.
Q2 sales
mDKK
Q2 2021
Q2 2020
Growth
Rabipur/RabAvert
127
142
-10%
Encepur
146
193
-24%
JYNNEOS
-
320
-
Mvabea (Ebola)
89
-
-
Contract work
8
45
-83%
Total
370
700
H1 sales
mDKK
H1 2021
H1 2020
Growth
Rabipur/RabAvert
207
360
-42%
Encepur
245
295
-17%
JYNNEOS
336
320
5%
Mvabea (Ebola)
89
-
-
Contract work
28
90
-69%
Total
905
1,065
Rabipur/RabAvert
Rabipur/RabAvert revenue amounted to DKK 127 million (DKK 142
million) for the second quarter. The 10% decrease versus the
prior year was primarily caused by expected market share loss
from competition being back after a temporary stock-out.
The US market grew by 5-6% compared with last year in the
period January to May, but the market is still significantly below
the pre-COVID-19 level. The US market share end of May was
approximately 68%, which is approximately 7 percentage points
higher than the level prior to the competitor out-of-stock
situation.
European revenue remains very low due to COVID-19 and the
impact on travelling to endemic rabies countries. The market is
down approximately 90% compared to the pre-COVID-19 market.
For the first half year Rabipur/RabAvert revenue amounted to
DKK 207 million (DKK 360 million), i.e. a decrease of 42%.
Encepur
Encepur revenue amounted to DKK 146 million (DKK 193 million)
for the second quarter, i.e. a decrease of 24% versus prior year
primarily caused by a significant market decline in Germany.
The Q2 2021 German market declined by nearly 26%, due to lack
of resources for TBE vaccinations as general practitioners were
focused on COVID-19 vaccinations. This decline followed a
promising first quarter with an 8% market growth. The German
market share was 32% by end of June, which is in line with prior
year.
For the first half year Encepur revenue amounted to DKK 245
million (DKK 295 million), i.e. a decrease of 17%.
JYNNEOS
Revenue from the sale of JYNNEOS/IMVANEX/IMVAMUNE in the
second quarter was DKK 0 million (DKK 320 million). For the first
half year JYNNEOS/IMVANEX/IMVAMUNE revenue was DKK 336
million, of which DKK 246 million was related to orders from the
US government and DKK 90 million was related to rest of World
orders.
Mvabea (Ebola)
Revenue from the sale of Mvabea to Janssen was DKK 89 million in
the second quarter and in the first half of the year (DKK 0
million/DKK 0 million). The revenue was all related to the order
announced in June 2020.
Contract work
Revenue from contract work in the second quarter was DKK 8
million (DKK 45 million), mainly stemming from qualification and
validation activities relating to the fill-and-finish plant and the
Phase 3 trial of the freeze-dried version of the smallpox vaccine,
both under contracts with the US government. For the first half
year revenue from contract work amounted to DKK 28 million
(DKK 90 million).
Our marketed products
PRODUCT
INDICATION
Rabipur
®
/RabAvert
®
Rabies
Encepur
®
Tick-borne encephalitis (TBE)
JYNNEOS
®
/IMVAMUNE
®
/IMVANEX
®
(liquid-frozen)
Smallpox (and Monkeypox in the US)
Mvabea
®
(licensed to Janssen)
Ebola
Bavarian Nordic Announces First Half 2021 Results Page 5 of 20
Company Announcement no. 28 / 2021
Update on strategic priorities
Bavarian Nordic’s fundamental mission is to save and improve
lives by unlocking the power of the immune system and in the
medium term, we have established a bold vision and aspiration to
become one of the largest pure play vaccine companies by
developing innovative life-saving vaccines, excelling in
commercialization and being a best-in-class vaccine
manufacturer.
Commercial
Commercial execution remains on track with the remaining
markets for Rabipur/RabAvert and Encepur, except Japan, now
transferred from GSK in accordance with plans and in record
time. In addition, market shares have either been maintained or
increased during the transition and the awareness of Bavarian
Nordic among health care practitioners have increased in key
markets.
In May, the Company entered an agreement with Dynavax on
marketing and distribution of their HEPLISAV-B
®
hepatitis B
vaccine in Germany with expected launch in the first half of
2022. The vaccine was granted marketing authorization by the
European Commission in February 2021. The vaccine will
complement and strengthen Bavarian Nordic’s commercial
portfolio in Germany, which, in addition to the Company’s own
vaccines for rabies and tick-borne encephalitis, also will include
Valneva’s vaccines for Japanese Encephalitis and cholera from
2022 as part of the mutual marketing and distribution agreement
entered last year.
R&D innovation
Several key pipeline projects have advanced during the first half,
supporting the Company’s strategy to develop innovative life-
saving vaccines.
COVID-19 vaccine
In August, Bavarian Nordic advanced the development of
ABNCoV2, the capsid virus like particle (cVLP) COVID-19 vaccine
candidate licensed from AdaptVac, by initiating a Phase 2 clinical
trial to investigate the potential of ABNCoV2 as a booster vaccine
for individuals with previous COVID-19 disease or vaccination.
The trial will enroll 150 healthy adults with existing immunity
against SARS-CoV-2, acquired through previous disease or from
prior immunization with approved COVID-19 vaccines, and will
investigate the ability of a single vaccination with ABNCoV2 to
boost existing levels of SARS-CoV-2 neutralizing antibodies across
all groups. A second arm in the trial will enroll up to 60 healthy
adults with no prior vaccination or disease who will receive two
vaccinations for evaluation of neutralizing antibody levels from
ABNCoV2 when used as a prime-boost vaccine. In both groups,
neutralizing immune responses against circulating variants of
SARS-CoV2 will be evaluated, as high levels of neutralizing
antibodies have been reported as highly predictive of protection
against COVID-19
1
. Initial trial results are expected in the fourth
quarter of 2021.
In parallel with the Phase 2 trial, Bavarian Nordic is preparing for
a Phase 3 trial of ABNCoV2 in 2022.
A funding agreement, valued at up to DKK 800 million, was
entered with the Danish Ministry of Health in August to support
the completion of the development of ABNCoV2 towards
licensure. Under the agreement, which is subject to final
approval by the Finance Committee of the Danish Parliament,
Bavarian Nordic is entitled to an upfront payment of DKK 80
million, in addition to payments of up to DKK 720 million, which
1
Khoury et al. doi.org/10.1101/2021.03.09.21252641
are contingent upon reaching a number of predefined milestones
including among others completion of the ongoing Phase 2 trial,
Phase 3 development milestones and milestones related to
upscaling of manufacturing for commercial production of the
vaccine.
All payments are potentially subject to repayment, however only
upon successful marketing authorization of the vaccine by the
European Commission. Repayment may occur via supply of
vaccines and royalty payments from the sale of the vaccine to
other customers. Royalty payments are only triggered upon
reaching a certain volume in sales. The Danish Ministry of Health
could be entitled to an additional, capped royalty payment if the
sales reach a certain threshold above the sales volume for the
ordinary royalty payment.
Earlier in August, initial data from the first-in-human study of
ABNCoV2 were reported. The study was conducted by AdaptVac
and the PREVENT-nCoV consortium under a Horizon 2020 EU grant.
The Phase 1/2 dose-escalation trial enrolled 45 healthy SARS-CoV-
2-naïve adult volunteers at the Radboud University Medical Centre
in the Netherlands, who received two doses (dose ranges from 6-
70 μg) of ABNCoV2, formulated with and without adjuvant. The
results demonstrate that the vaccine was well tolerated across all
dose groups with no observed difference in the adverse event
profile after first and second vaccinations. No serious adverse
events were reported, and the safety profile was comparable to
other vaccines based on recombinant protein-technology.
In all dose groups, antibody titers were significantly higher after
the boost vaccination and were up to 12-fold higher than those
measured in convalescent human samples and significantly higher
than those reported for current approved COVID-19 vaccines.
Importantly, high neutralization titers were demonstrated against
all SARS-CoV-2 variants of concern, including the dominant Delta
variant.
Final results from the study are expected later in the second half
of 2021.
RSV
As planned, Bavarian Nordic initiated a Phase 2 human challenge
trial of its RSV vaccine candidate, MVA-BN RSV in the first quarter
of 2021. All subjects have been vaccinated and challenged, and
the trial will generate the first efficacy data against RSV during
second half of 2021. In parallel, activities to support a regulatory
Phase 3 trial in 2022 are ongoing, pending results from the human
challenge trial.
MVA-BN smallpox, freeze-dried
The tech transfer of the freeze-dried version of the MVA-BN
smallpox vaccine to Bavarian Nordic’s fill and finish line has been
initiated, which, together with the completed Phase 3 trial (lot
consistency trial) will form basis for submission of a supplement
to the Biologics License Application (BLA) to extend the approval
for both formulations of MVA-BN, anticipated in 2022.
Immuno-oncology
During first quarter, Bavarian Nordic initiated a Phase 1/2 open
label trial of intravenous administration of TAEK-VAC, a tumor
antibody enhanced therapeutic vaccine targeting HER2 and
brachyury, which has been generated from the MVA-BN platform.
The first stage of the trial is investigating the safety and
tolerability of escalating doses of the vaccine before advancing
into stage 2, expected in the second half of 2021.
Page 6 of 20
Bavarian Nordic A/S
Philip Heymans Alle 3 Tel. +45 33 26 83 83 CVR-no. 16 27 11 87
DK-2900 Hellerup www.bavarian-nordic.com LEI Code: 2138006JCDVYIN6INP51
Our clinical pipeline
VACCINE
INDICATION
PHASE 1
PHASE 2
PHASE 3
STATUS / MILESTONE
MVA-BN freeze-dried
Smallpox
Phase 3 lot-consistency study ongoing with anticipated completion in 2021
MVA-BN RSV
RSV
Human challenge trial ongoing with data read-out in 2021 and subsequent
Phase 3 initiation in 2022.
ABNCoV2
COVID-19
Phase 2 ongoing with expected data read-out in Q4 2021
TAEK-VAC
Cancer
Phase 1/2 study ongoing
MVA-BN WEV
Equine encephalitis
Phase 1 dose finding study completed.
Manufacturing
The ongoing activities to expand Bavarian Nordic’s manufacturing
footprint are progressing as planned, while also running the
planned production in parallel.
Key manufacturing activities in 2021 relate to the production of
bulk vaccine for the US government, as well as production of
Mvabea (Ebola) bulk vaccine for Janssen.
In June, the Kvistgaard manufacturing facility was inspected by
the Danish Medicines Agency (DMA). In addition to the primary
inspection of the new fill and finish facility, the existing bulk
manufacturing facility was reinspected in accordance with the
GMP requirements. Both inspections were successful and Bavarian
Nordic expects to receive the formal approval of the entire
facility from the DMA during the third quarter of 2021.
During first half, transfer and validation of the final drug
production of the liquid-frozen JYNNEOS smallpox vaccine was
completed and commercial production of the vaccine has been
initiated at the new fill and finish facility.
Additionally, the expansion of the bulk facility to support
technology transfer of Rabipur/RabAvert and Encepur have
progressed timely.
Other matters
Successful private placement strengthening the capital base and
providing flexibility to advance COVID-19 vaccine candidate
In March 2021, Bavarian Nordic announced and completed a
directed issue and private placement of 5,150,000 new shares,
generating gross proceeds of DKK 1,148 million. Part of the
proceeds will be used to fund the Phase 2 clinical study and
scale-up of manufacturing to accommodate potential future
clinical development to support licensure of ABNCoV2.
Additionally, the proceeds will be used to secure financial
flexibility to strengthen the Company’s manufacturing
capabilities, ensure the strategic flexibility necessary to pursue
an active M&A strategy, and to strengthen the Company’s capital
base and cash preparedness for general corporate purposes.
Bavarian Nordic Announces First Half 2021 Results Page 7 of 20
Company Announcement no. 28 / 2021
Financial review
Financial statements for the period January 1 – June 30, 2021
are un-audited. Comparison figures for the same period 2020 are
stated in brackets.
Revenue
Revenue generated for the six months ending June 30, 2021 was
DKK 905 million (DKK 1,065 million). Revenue was composed of
DKK 452 million (DKK 655 million) from sale of the two new
products Rabipur/RabAvert and Encepur, DKK 246 million (DKK
320 million) from sale of MVA-BN smallpox vaccine bulk drug
substance to US government, DKK 90 million (DKK 0 million) sale
of smallpox vaccines to three European countries, DKK 89 million
(DKK 0 million) sale of Mvabea to Janssen, and DKK 28 million
(DKK 90 million) from contract work. Revenue reported for the
three months ended June 30, 2021 was DKK 370 million (DKK 700
million).
Production costs
Production costs totaled DKK 627 million (DKK 623 million). Costs
related directly to revenue amounted to DKK 343 million (DKK
443 million), of which cost of goods sold totaled DKK 324 million
(DKK 384 million). Contract costs totaled DKK 19 million (DKK 60
million). Amortization of product rights related to
Rabipur/RabAvert and Encepur has also been recognized as part
of the production costs with a total of DKK 136 million (DKK 136
million). Other production costs totaled DKK 147 million (DKK 43
million), part of which is related to production of RSV Phase 3
clinical trial material, which gave a much lower utilization of the
capacity for commercial manufacturing leading to low absorption
of indirect production costs causing higher other production
costs.
In the second quarter of 2021, production costs were DKK 249
million (DKK 379 million).
Sales and distribution costs
Sales and distribution costs totaled DKK 98 million (DKK 150
million) split between costs for distribution of products of DKK 10
million (DKK 79 million) and costs for running the commercial
organization and activities of DKK 88 million (DKK 71 million). In
2020 GSK handled the sale and distribution of Rabipur/RabAvert
and Encepur for which the Group paid a distribution fee based on
the revenue incurred, leading to much higher distribution costs in
2020 compared to 2021.
Research and development costs
Research and development costs totaled DKK 219 million (DKK
124 million). The increase compared to 2020 was driven by
manufacturing of RSV Phase 3 material. The amount excludes
R&D costs of DKK 19 million (DKK 60 million) classified as
production costs.
Administrative costs
Administrative costs totaled DKK 156 million (DKK 126 million).
The increase primarily relates to the ongoing transfer project for
Rabipur/RabAvert and Encepur and the impact from the
extension of the executive management during 2020.
Other operating income
Other operating income for 2020 related to the sale of the
Priority Review Voucher, DKK 628 million.
2
The deferred consideration for product rights is measured at net present value and the difference between the net present value and the amounts due is
recognized in the income statement as a financial expense over the period until expected payment date using the effective interest method.
EBIT/EBITDA
Income before interest and tax (EBIT) was a loss of DKK 195
million, compared to a gain of DKK 670 million in first half of
2020.
EBITDA was a loss of DKK 8 million (gain of DKK 839 million).
Amortization of product rights related to Rabipur/RabAvert and
Encepur amounted to DKK 136 million (DKK 136 million) whereas
depreciation on other fixed assets amounted to DKK 51 million
(DKK 33 million).
Financial items
Financial items totaled a net expense of DKK 83 million (DKK 42
million) and consisted of interest expense on debt of DKK 9
million (DKK 23 million), net value adjustment of deferred
consideration of DKK 60 million (DKK 28 million), a net loss on
derivative financial instruments of DKK 2 million (DKK 1 million)
and a net expense from securities of DKK 18 million (income of
DKK 7 million), partly offset by net foreign exchange rate gains of
DKK 5 million (DKK 2 million).
The net value adjustment of deferred consideration consists of
three components; Adjustment of deferred consideration due to
change in estimated timing of payments DKK 6 million income
(income of DKK 27 million), currency adjustments of DKK 2
million income (income of DKK 7 million) and unwinding
2
of the
discounting effect related to deferred consideration DKK 68
million (DKK 62 million), see note 6 and 7.
Income before company tax was a loss of DKK 278 million (gain of
DKK 628 million).
Tax
Tax on income was DKK 3 million (DKK 2 million). The parent
company’s taxable income for the full year of 2021 is expected to
be zero due to utilization of taxable amortization on the acquired
product rights related to Rabipur/RabAvert and Encepur, leading
to an effective tax rate close to 0% for the Group. We do not
expect to use any tax loss carry forwards, hence the deferred tax
asset on the balance sheet remains at DKK 0 million. The
Company retains the right to use the tax losses carried forward
that was written down in prior year, see note 14 in the Annual
Report for 2020.
Net profit
For the first six months of 2021, Bavarian Nordic reported a net
loss of DKK 281 million (net gain of DKK 626 million).
Product rights
Product rights recognized in the balance sheet totaled DKK 5,049
million (DKK 5,186 million as of December 31, 2020) and relates
to Rabipur/RabAvert and Encepur.
Securities, cash and cash equivalents
Securities, cash and cash equivalents were DKK 2,513 million as of
June 30, 2021, including repo pledged securities of DKK 305 million
(DKK 1,670 million as of December 31, 2020, no repo pledged
securities). The increase is primarily due to the capital increase in
March 2021 which generated net proceeds of DKK 1.1 billion.
In addition to the current cash position, the Company has an
undrawn loan with the European Investment Bank of EUR 30
million.
Bavarian Nordic Announces First Half 2021 Results Page 8 of 20
Company Announcement no. 28 / 2021
Cash flow
Cash flow generated by operating activities was negative by DKK
377 million (positive by DKK 672 million), primarily due to
increase in inventories following the market take-overs from GSK
and higher accounts receivables compared to year-end 2020.
Cash flow from investment activities was negative by DKK 1,179
million (negative by DKK 1,945 million) following net investments
in securities of DKK 966 million (net investment of DKK 1,824
million). Cash flow from investment activities also include DKK
171 million (DKK 66 million) of investments in property, plant and
equipment related to the ongoing expansion of the bulk facility
for future production of Rabipur/RabAvert and Encepur.
Investment in other intangible assets amounted to DKK 42 million
(DKK 30 million) and includes the ongoing Rabipur/RabAvert and
Encepur technology transfer project and IT system investments.
Cash flow from financing activities was a contribution of DKK
1,455 million (DKK 1,352 million), following the proceeds from
capital increase through private placement and conclusion of
repo transactions. The net change in cash and cash equivalents
was negative by DKK 102 million (positive by DKK 79 million).
Equity
The Group’s equity as of June 30, 2021 stood at DKK 5,789
million (DKK 4,894 million as of December 31, 2020). The capital
increase through private placement increased the equity by DKK
1,148 million before costs.
Deferred consideration
Deferred consideration for product rights amounted to DKK 2,882
million, an increase of DKK 60 million compared to December 31,
2020, due to the adjustment of net present value following the
unwinding of the discounting effect.
Debt to credit institutions
The Company has concluded repo transactions (further described
in note 15) hence debt to credit institutions increased by DKK 306
million compared to December 31, 2020.
Significant risks and uncertainties
Bavarian Nordic faces a number of risks and uncertainties,
common for the biotech/pharma industry. These relate to
operations, research and development, manufacturing,
commercial and financial activities. For further information
about risks and uncertainties which Bavarian Nordic faces, refer
to page 48-51 “Risk Management” in the 2020 Annual Report.
In addition to the risk factors stated in the annual report, the
COVID-19 situation could impact Bavarian Nordic’s business
adversely by delaying projects, development or manufacturing or
by negatively impacting demand for products.
Outlook for 2021
Bavarian Nordic maintains the financial guidance for 2021,
expecting to meet to the lower end of the previously guided
ranges due to continued COVID-19 impact on the TBE and rabies
markets. Thus, revenue of approximately DKK 1,900 million and
an EBITDA of approximately DKK 100 million are expected. Cash
and cash equivalents at year-end are expected to be
approximately DKK 1,400 million.
The smallpox and Ebola business are not expected to be
impacted by COVID-19.
Other key assumptions for the guidance remain largely
unchanged.
Financial calendar 2021 and 2022
The 2022 dates for announcement of the Company’s financial
reports and the annual general meeting have now been
determined, and planned future reporting dates are as follows:
Nine-month report (Q3) November 12, 2021
2021 Annual Report March 4, 2022
Annual General Meeting* April 5, 2022
Three-month report (Q1) May 9, 2022
Half-year report (Q2) August 24, 2022
Nine-month report (Q3) November 9, 2022
* Pursuant to Article 12 of the Articles of Association,
shareholders who wish to submit a request for proposals for
consideration at the annual general meeting must lodge this with
the Company no later than Monday, February 21, 2022.
Bavarian Nordic Announces First Half 2021 Results Page 9 of 20
Company Announcement no. 28 / 2021
Financial statements
Unaudited Condensed Consolidated Income Statements for the Periods Ended June 30, 2021 and 2020 and
December 31, 2020
DKK thousand
Note
1/4 - 30/6 2021
1/4 - 30/6 2020
1/1 - 30/6 2021
1/1 - 30/6 2020
1/1-31/12 2020
Revenue
3
Production costs
4
Gross profit
Sales and distribution costs
Research and development costs
5
Administrative costs
Total operating costs
Other operating income
Income before interest and tax (EBIT)
(106,640 )
(194,633 )
Financial income
6
Financial expenses
7
Income before company tax
(148,133 )
(277,864 )
Tax on income for the period
Net profit for the period
(150,258 )
(281,103 )
Earnings per share (EPS) - DKK
Basic earnings per share of DKK 10
(2.4 )
(4.6 )
Diluted earnings per share of DKK 10
(2.4 )
(4.6 )
Unaudited Condensed Consolidated Statements of Comprehensive Income for the Periods Ended June 30,
2021 and 2020 and December 31, 2020
DKK thousand
1/4 - 30/6 2021
1/4 - 30/6 2020
1/1 - 30/6 2021
1/1 - 30/6 2020
1/1-31/12 2020
Net profit for the period
(150,258 )
(281,103 )
Items that might be reclassified to the
income statement:
Exchange rate adjustments on translating
foreign operations
(200 )
(261 )
(3,082 )
Change in fair value of financial instruments
entered into to hedge future cash flows
(10,786 )
(3,096 )
Other comprehensive income after tax
(6,795 )
(6,178 )
Total comprehensive income
(147,931 )
(287,898 )
Bavarian Nordic Announces First Half 2021 Results Page 10 of 20
Company Announcement no. 28 / 2021
Unaudited Condensed Consolidated Statements of Cash Flow for the Periods Ended June 30, 2021 and 2020
and December 31, 2020
DKK thousand
1/1 - 30/6 2021
1/1 - 30/6 2020
1/1-31/12 2020
Net profit for the period
(281,103 )
Adjustment for non-cash items:
Financial income
(18,625 )
(44,302 )
(97,922 )
Financial expenses
Tax on income for the period
Depreciation, amortization and impairment losses
Share-based payment
Changes in inventories
(146,361 )
(53,834 )
(420,320 )
Changes in receivables
(209,922 )
(246,079 )
(88,094 )
Changes in current liabilities
(38,304 )
Cash flow from operations (operating activities)
(368,183 )
Received financial income
Paid financial expenses
(12,610 )
(13,070 )
(40,034 )
Paid company taxes
(953 )
(1,975 )
(3,944 )
Cash flow from operating activities
(377,266 )
Investments in products rights
(21,672 )
(393,992 )
Investments in other intangible assets
(41,633 )
(30,328 )
(107,885 )
Investments in property, plant and equipment
(171,411 )
(66,261 )
(204,833 )
Investments in/disposal of financial assets
(561 )
(2,514 )
(2,677 )
Investments in securities
(1,116,911 )
(2,104,089 )
(2,343,828 )
Disposal of securities
Cash flow from investment activities
(1,179,496 )
(1,944,953 )
(1,911,532 )
Payment on loans
(1,088 )
(1,383,457 )
(1,375,598 )
Proceeds from loans
Repayment of lease liabilities
(9,745 )
(8,360 )
(17,799 )
Proceeds from warrant programs exercised
Proceeds from rights issue
Proceeds from capital increase through private placement
Cost related to issue of new shares
(25,563 )
(98,745 )
(103,184 )
Sale of preemptive rights - treasury shares
Purchase of treasury shares
(8,581 )
(11,099 )
Cash flow from financing activities
Cash flow of the period
(101,783 )
(4,747 )
Cash as of 1 January
Currency adjustments 1 January
(7,311 )
Cash end of period
Bavarian Nordic Announces First Half 2021 Results Page 11 of 20
Company Announcement no. 28 / 2021
Unaudited Condensed Consolidated Statements of Financial Position - Assets as of June 30, 2021 and 2020
and December 31, 2020
DKK thousand
Note
30/6 2021
30/6 2020
31/12 2020
Assets
Product rights
Acquired patents and licenses
Software
Intangible assets in progress
Intangible assets
Land and buildings
Leasehold improvements
Plant and machinery
Fixtures and fittings, other plant and equipment
Assets under construction
Property, plant and equipment
Right-of-use assets
14
Other receivables
Financial assets
Total non-current assets
Inventories
8
Trade receivables
9
Tax receivables
Other receivables
10
Prepayments
Receivables
Securities
15, 16
Cash and cash equivalents
Securities, cash and cash equivalents
Total current assets
Total assets
Bavarian Nordic Announces First Half 2021 Results Page 12 of 20
Company Announcement no. 28 / 2021
Unaudited Condensed Consolidated Statements of Financial Position - Equity and Liabilities as of June 30,
2021 and 2020 and December 31, 2020
DKK thousand
Note
30/6 2021
30/6 2020
31/12 2020
Equity and liabilities
Share capital
Treasury shares
(1,176 )
(553 )
(1,077 )
Retained earnings
Other reserves
Equity
Deferred consideration for product rights
Debt to credit institutions
11
Lease liabilities
14
Non-current liabilities
Deferred consideration for product rights
Debt to credit institutions
11, 15
Lease liabilities
14
Prepayment from customers
12
Trade payables
Company tax
Other liabilities
13
Current liabilities
Total liabilities
Total equity and liabilities
Bavarian Nordic Announces First Half 2021 Results Page 13 of 20
Company Announcement no. 28 / 2021
Unaudited Condensed Consolidated Statements of Changes in Equity for the Periods June 30, 2021 and
2020
DKK thousand
Share
capital
Treasury
shares
Retained
earnings
Reserves for
currency
adjustment
Reserves for
fair value of
financial
instruments
Share-based
payment
Equity
Equity as of January 1, 2021
(1,077 )
(40,640 )
(809 )
Comprehensive income for the period
Net profit
(281,103 )
(281,103 )
Other comprehensive income
Exchange rate adjustments on translating
foreign operations
Change in fair value of financial instruments
entered into to hedge future cash flows
(10,786 )
(10,786 )
Total comprehensive income for the period
(281,103 )
(10,786 )
(287,898 )
Transactions with owners
Share-based payment
Warrant program exercised
(11,860 )
Capital increase through private placement
Cost related to issue of new shares
(25,563 )
(25,563 )
Purchase of treasury shares
(317 )
(8,264 )
(8,581 )
Transfer regarding restricted stock units
(3,734 )
Total transactions with owners
(99 )
Equity as of June 30, 2021
(1,176 )
(36,649 )
(11,595 )
DKK thousand
Share
capital
Treasury
shares
Retained
earnings
Reserves
for
currency
adjustment
Reserves
for fair
value of
financial
instrument
s
Share-
based
payment
Equity
Equity as of January 1, 2020
(684 )
(37,558 )
Comprehensive income for the period
Net profit
Other comprehensive income
Exchange rate adjustments on translating
foreign operations
(261 )
(261 )
Change in fair value of financial instruments
entered into to hedge future cash flows
Total comprehensive income for the period
(261 )
Transactions with owners
Share-based payment
Warrant program exercised
(3,448 )
Capital increase through rights issue
Cost related to issue of new shares
(98,745 )
(98,745 )
Transfer regarding restricted stock units
(3,766 )
Sale of preemptive rights - treasury shares
Total transactions with owners
Equity as of June 30, 2020
(553 )
(37,819 )
Bavarian Nordic Announces First Half 2021 Results Page 14 of 20
Company Announcement no. 28 / 2021
Notes
1. Significant accounting policies
2. Significant accounting estimates, assumptions and uncertainties
3. Revenue
4. Production costs
5. Research and development costs
6. Financial income
7. Financial expenses
8. Inventories
9. Trade receivables
10. Other receivables
11. Debt to credit institutions
12. Prepayment from customers
13. Other liabilities
14. Right-of-use assets and lease liabilities
15. Transferred financial assets that are not derecognized
16. Financial instruments
17. Warrants
18. Significant changes in contingent liabilities and other contractual obligations
19. Significant events after the balance sheet date
20. Approval of the unaudited condensed consolidated interim financial statements
1. Significant accounting policies
The interim financial statements are prepared in accordance with IAS 34, Interim Financial Reporting, as adopted by EU and the additional
Danish requirements for submission of interim reports for companies listed on Nasdaq Copenhagen. The interim report has not been audited
or reviewed by the Company’s auditors.
The interim financial statements are presented in Danish Kroner (DKK), which is considered the primary currency of the Group’s activities
and the functional currency of the parent company.
The accounting policies used in the interim financial statements are consistent with those used in the consolidated financial statements for
2020 and in accordance with the recognition and measurement policies in the International Financial Reporting Standards (IFRS) as adopted
by EU.
As of June 30, 2021, the Company has implemented all new or amended accounting standards and interpretations as adopted by the EU and
applicable for the 2021 financial year. None of the new or amended standards or interpretations are assessed to have significant impact on
the consolidated financial statements.
2. Significant accounting estimates, assumptions and uncertainties
In the preparation of the interim financial statements according to IAS 34, Interim Financial Reporting, as adopted by the EU, Management is
required to make certain estimates as many financial statement items cannot be reliably measured but must be estimated. Such estimates
comprise judgments made on the basis of the most recent information available at the reporting date. It may be necessary to change
previous estimates as a result of changes to the assumptions on which the estimates were based or due to supplementary information,
additional experience or subsequent events.
Similarly, the value of assets and liabilities often depends on future events that are somewhat uncertain. In that connection, it is necessary
to set out e.g. a course of events that reflects Management’s assessment of the most probable course of events.
Further to the significant accounting estimates, assumptions and uncertainties, which are stated in the Annual Report 2020, the Management
has not changed significant estimates and judgments regarding recognition and measurement.
Bavarian Nordic Announces First Half 2021 Results Page 15 of 20
Company Announcement no. 28 / 2021
DKK thousand
1/4 - 30/6
2021
1/4 - 30/6
2020
1/1 - 30/6
2021
1/1 - 30/6
2020
1/1-31/12
2020
3. Revenue
MVA-BN smallpox vaccine sale
167
320,123
336,378
320,309
540,769
Rabipur/RabAvert
126,858
141,551
207,190
359,691
627,699
Encepur
146,180
192,629
244,660
295,399
455,012
Other product sale
89,079
-
89,079
-
-
Sale of goods
362,284
654,303
877,307
975,399
1,623,480
Milestone payments
-
-
-
-
66,553
Contract work
7,715
45,272
27,945
89,581
162,350
Sale of services
7,715
45,272
27,945
89,581
228,903
Revenue
369,999
699,575
905,252
1,064,980
1,852,383
Total revenue includes:
Fair value adjustment concerning financial instruments
entered into to hedge revenue
0
-
269
-
13,146
4. Production costs
Cost of goods sold
118,249
241,401
323,660
383,696
584,574
Contract costs
5,743
30,286
19,229
59,539
104,409
Amortization product rights
68,233
68,233
136,467
136,467
272,935
Other production costs
57,076
39,566
147,286
42,868
233,176
Production costs
249,301
379,486
626,642
622,570
1,195,094
5. Research and development costs
Research and development costs occurred in the period
102,820
88,264
238,446
183,598
445,829
Of which:
Contract costs recognized as production costs
(5,743)
(30,286)
(19,229)
(59,539)
(104,409)
Research and development costs
97,077
57,978
219,217
124,059
341,420
6. Financial income
Financial income from bank and deposit contracts
56
5
97
193
193
Interest income from financial assets measured at
amortized cost
56
5
97
193
193
Financial income from securities
3,174
2,540
5,465
3,693
8,756
Fair value adjustments on securities
-
10,724
-
3,803
6,783
Adjustment of deferred consideration due to change in
estimated timing of payments
6,008
18,423
6,343
27,092
67,719
Currency adjustment deferred consideration
421
6,244
1,787
7,198
11,900
Net gains on derivative financial instruments at fair value
through the income statement
-
-
-
-
2,571
Net foreign exchange gains
2,054
(3,491)
4,933
2,323
-
Financial income
11,713
34,445
18,625
44,302
97,922
7. Financial expenses
Interest expenses on debt
4,222
4,689
8,884
23,146
31,853
Interest expenses on financial liabilities measured at
amortized cost
4,222
4,689
8,884
23,146
31,853
Fair value adjustments on securities
8,147
-
22,996
-
-
Unwinding of the discounting effect related to deferred
consideration
39,760
31,070
67,889
61,887
145,149
Net loss on derivative financial instruments at fair value
through the income statement
1,077
(1,091)
2,087
1,493
-
Net foreign exchange losses
-
-
-
-
18,532
Financial expenses
53,206
34,668
101,856
86,526
195,534
Bavarian Nordic Announces First Half 2021 Results Page 16 of 20
Company Announcement no. 28 / 2021
DKK thousand
30/6 2021
30/6 2020
31/12 2020
8. Inventories
Raw materials and supply materials
69,770
51,094
73,919
Work in progress
78,046
217,007
201,601
Manufactured goods and commodities
529,530
336
309,099
Write-down on inventory
(9,903)
(113,841)
(63,537)
Inventories
667,443
154,596
521,082
Write-down on inventory 1 January
(63,537)
(104,056)
(104,056)
Write-down during the period
(6,252)
(14,178)
(25,692)
Use of write-down
59,886
3,854
65,672
Reversal of write-down
-
539
539
Write-down end of period
(9,903)
(113,841)
(63,537)
9. Trade receivables
Trade receivables from smallpox vaccine sale
166
-
-
Trade receivables from Encepur and Rabipur/RabAvert
266,418
254,153
121,355
Trade receivables from other product sale
68,956
-
-
Trade receivables from contract work
4,415
64,133
17,937
Trade receivables
339,955
318,286
139,292
10. Other receivables
Receivable VAT and duties
23,228
14,999
31,486
Derivative financial instruments at fair value
-
5,817
606
Interest receivables
4,609
3,185
3,767
Other receivables
-
-
1,475
Other receivables
27,837
24,001
37,334
11. Debt to credit institutions
Mortgage
22,159
24,330
23,247
European Investment Bank (loan in DKK)
372,195
372,195
372,195
Security lending (repo transactions)
306,706
-
-
Debt to credit institutions
701,060
396,525
395,442
12. Prepayment from customers
Prepayments from customers as of January 1
74,347
6,631
6,631
Prepayments received during the period
-
22,079
77,185
Recognized as revenue during the period
(22,912)
(2,238)
(9,469)
Prepayments from customers end of period
51,435
26,472
74,347
13. Other liabilities
Financial instruments at fair value
11,651
1,495
1,414
Liability relating to phantom shares
16,250
3,761
4,849
Payable salaries, holiday accrual etc.
80,511
93,055
101,229
Gross to net deduction accrual
63,175
-
26,355
Other accrued costs
27,030
26,080
17,967
Other liabilities
198,617
124,391
151,814
Bavarian Nordic Announces First Half 2021 Results Page 17 of 20
Company Announcement no. 28 / 2021
14. Right-of-use assets and lease liabilities
Right-of-use assets
DKK thousand
Rent facility
Car leasing
Equipment
Total
Right-of-use assets as of January 1, 2021
68,931
2,312
744
71,987
Additions
-
753
-
753
Modifications
20,503
111
38
20,652
Depreciations
(8,967)
(796)
(225)
(9,988)
Exchange rate adjustments
(6)
24
-
18
Right-of-use assets as of June 30, 2021
80,461
2,404
557
83,422
Lease liabilities
DKK thousand
30/6 2021
Non-current
65,203
Current
21,079
Lease liabilities
86,282
Amounts included in the income statement
DKK thousand
1/1 - 30/6 2021
Interest expense leases
1,007
Depreciation recognized on right-of-use assets
9,988
Cost recognized for short term leases (less than 12 months)
220
In the first six months of 2021 the total cash outflow relating to lease was DKKt 10,752 split between interests of DKKt 1,007 and repayment
of DKKt 9,745.
15. Transferred financial assets that are not derecognized
The Company has entered into transactions that transferred ownership of securities to a counterparty, while the Company retains the risks
associated with the holding of the securities (repo transactions). As the Company retains all risks, the securities remain in the balance sheet,
and the transactions are accounted for as loans received against collateral (securities lending). The transactions involve selling the securities
to be repurchased at a fixed price at a later date. Counterparties are entitled to sell the securities or deposit them as collateral for loans.
DKK thousand
30/6 2021
30/6 2020
31/12 2020
Carrying amount of transferred securities
305,050
-
-
Carrying amount of associated liabilities (repo transactions)
(306,706)
-
-
Net position
(1,656)
-
-
Bavarian Nordic Announces First Half 2021 Results Page 18 of 20
Company Announcement no. 28 / 2021
16. Financial instruments
Method and assumption to determine fair value
The Group has financial instruments measured at fair value at level 1 and level 2.
Securities (level 1)
The portfolio of publicly traded government bonds and publicly traded mortgage bonds is valued at listed prices and price quotas.
Derivative financial instruments (level 2)
Currency forward contracts, currency option contracts and currency swap contracts are valued according to generally accepted valuation
methods based on relevant observable swap curves and exchange rates.
Fair value hierarchy for financial instruments measured at fair value
As of June 30, 2021
DKK thousand
Level 1
Level 2
Total
Securities
2,022,497
-
2,022,497
Transferred securities that are not derecognized
305,050
-
305,050
Financial assets measured at fair value through the income statement
2,327,547
-
2,327,547
Derivative financial instruments to hedge future cash flow (currency)
-
(10,681)
(10,681)
Derivative financial instruments to hedge future cash flow (interest)
-
(914)
(914)
Financial assets/liabilities used as hedging instruments
-
(11,595)
(11,595)
Derivative financial instruments at fair value through the income statement
(currency)
-
(56)
(56)
Security lending (repo transactions)
(306,706)
-
(306,706)
Liability relating to phantom shares
-
(16,250)
(16,250)
Financial liabilities measured at fair value through the income statement
(306,706)
(16,306)
(323,012)
As of December 31, 2020
DKK thousand
Level 1
Level 2
Total
Securities
1,384,120
-
1,384,120
Financial assets measured at fair value through the income statement
1,384,120
-
1,384,120
Derivative financial instruments to hedge future cash flow (currency)
-
606
606
Derivative financial instruments to hedge future cash flow (interest)
-
(1,414)
(1,414)
Financial assets/liabilities used as hedging instruments
-
(808)
(808)
Liability relating to phantom shares
-
(4,849)
(4,849)
Financial liabilities measured at fair value through the income statement
-
(4,849)
(4,849)
Bavarian Nordic Announces First Half 2021 Results Page 19 of 20
Company Announcement no. 28 / 2021
17. Warrants
Outstanding warrants as of June 30, 2021
Outstanding
as of
January 1
Addition
during the
period
Warrants
exercised
Annulled
Terminated
Trans-
ferred
Outstanding
as of
June 30
Corporate Management
439,402
-
-
-
-
-
439,402
Other Executive Management
723,326
-
(12,191)
-
-
(215,328)
495,807
Other employees
2,062,360
-
(164,969)
(141,518)
-
(43,243)
1,712,630
Resigned employees
167,901
-
(39,976)
-
-
258,571
386,496
Total
3,392,989
-
(217,136)
(141,518)
-
-
3,034,335
Weighted average exercise price
188
-
206
192
-
-
187
Weighted average share price at exercise
-
-
295
-
-
-
-
Numbers of warrants which can be exercised as of June 30, 2021
595,009
at a weighted average exercise price of DKK
233
The total recognized cost of the warrant programs was DKK 16.4 million in the first six months of 2021 (DKK 10.3 million).
Specification of parameters for Black-Scholes model
DKK
Dec
2016
Jul
2017
Nov
2017
Nov
2018
Nov
2019
Jan
2020
Nov
2020
Average share price
222.50
383.50
259.50
159.00
154.05
171.20
179.84
Average exercise price at grant
260.20
430.40
303.00
179.60
185.40
197.00
206.82
Average exercise price determined at date
of rights issue March 30, 2020 (DKK)
205.80
340.40
239.60
142.00
146.60
155.80
-
Applied volatility rate
44.6%
44.1%
52.4%
53.3%
52.2%
53.0%
39.8%
Expected life (years)
3.0
3.0
3.0
3.0
3.0
3.0
3.0
Expected dividend per share
-
-
-
-
-
-
-
Risk-free interest rate p.a.
-0.48%
-0.46%
-0.55%
-0.43%
-0.69%
-0.65%
-0.66%
Fair value at grant
1)
54
98
80
52
45
53
41
The applied volatility is based on the historical volatility of the Bavarian Nordic share, except for November 2020 program where the
volatility is based on the volatility for a peer group.
1)
Fair value of each warrant applying the Black-Scholes model
18. Significant changes in contingent liabilities and other contractual obligations
No significant changes in contingent liabilities and other contractual obligations have occurred since December 31, 2020.
19. Significant events after the balance sheet date
On August 9, 2021, Bavarian Nordic reported initial results from the first-in-human trial of ABNCoV2, showing that the COVID-19 vaccine
candidate was well tolerated and induced a strong antibody response, superior to current approved vaccines. Importantly, a strong
neutralization response was demonstrated against SARS-CoV2 variants, including the Delta variant.
On August 23, 2021, Bavarian Nordic announced the initiation of a Phase 2 clinical trial of ABNCoV2 to investigate the vaccine’s potential as a
universal booster vaccine for individuals with existing immunity from prior COVID-19 disease or vaccination.
On August 23, 2021, Bavarian Nordic announced a funding agreement with the Danish Ministry of Health to further advance the development
of ABNCoV2. The agreement is valued at up to DKK 800 million and aims to support the completion of the development towards licensure of
ABNCoV2 as a booster vaccine.
20. Approval of the unaudited condensed consolidated interim financial statements
The unaudited condensed consolidated interim financial statements were approved by the Board of Directors and Corporate Management and
authorized for issue on August 25, 2021.
Bavarian Nordic Announces First Half 2021 Results Page 20 of 20
Company Announcement no. 28 / 2021
Statement from the Board of Directors and Corporate Management
Corporate Management:
Board of Directors:
Employee-elected Employee-elected Employee-elected Employee-elected