Bavarian Nordic share price doubles in four months  

2009.08.11
Vaccine company Bavarian Nordic's share price is now double what it was at the end of March, with a further rise forecast
Anyone who has been watching share price movements on Copenhagen Stock Exchange's Mid-Cap Index in recent times will know that the Danish vaccine company Bavarian Nordic has turned into something of a star performer. Over the last four months its share price has more than doubled, and yet analysts think there is still room for a further rise, reports financial daily newspaper Børsen.
 
So what's behind the share price hike? Well, Bavarian Nordic makes a highly rated smallpox vaccine called Imvamune, and before long the US Food & Drug Administration (FDA) is expected to approve the sale of 20 million doses of Imvamune to the US government – a contract worth a cool DKK 2bn (USD 386m) over the next three years. What's more, Bavarian Nordic's Prostvac vaccine for prostate cancer has delivered promising Phase II data and the company expects to bring a collaboration partner on board before Phase III studies get under way.
 
Rosy prospects, then. But are Bavarian Nordic's shares really worth more than double what they were at the end of March? Standard & Poor's thinks so. Share analyst Jacob Thrane told Børsen: "Despite the recent rise, Bavarian Nordic's shares are still undervalued. Approval of the smallpox vaccine delivery is just around the corner, and when it comes, the share price will shoot up. At the moment the coming deliveries, the major potential in options contracts and Prostvac are not fully factored into the price."
 
Bavarian Nordic has previously advised that it expects FDA approval of the Imvamune delivery this summer. No sign of it yet, but Bavarian Nordic managing director Anders Hedegaard is unfazed.
 
"It will be gratifying if we get approval in August, although it cannot be said with certainty. We have a good dialogue with the FDA and I am sure that it (the approval) will come," opines Hedegaard.
 
Headquartered in Denmark, Bavarian Nordic develops and produces innovative vaccines to prevent and treat life-threatening diseases with a large unmet medical need. The company's business strategy is focused in three areas: biodefence, cancer and infectious diseases. Bavarian Nordic employs over 260 people and has operations in Germany, the US and Singapore. Bavarian Nordic's partners include Pharmexa, Impfstoffwerk Dessau-Tornau (IDT) and Vaccine Solutions.  
 
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