To restock the US with smallpox and mpox vaccines, Bavarian Nordic signs a $120 million BARDA contract

US Government Buys Smallpox and Mpox Vaccines from Bavarian Nordic

Source – Bavarian Nordic

Vaccine manufacturer Bavarian Nordic, which played a crucial role in combating the mpox outbreak in 2022, has agreed to assist in replenishing the US stock of its smallpox/mpox vaccine. The US Biomedical Advanced Research and Development Authority (BARDA) has awarded Bavarian Nordic a new contract worth $120 million. The majority of the contract’s value, around $96 million, will be dedicated to producing new bulk vaccine products. This production is set to take place in 2023 and will only partially restore the vaccine inventory.  As of Aug. 1, 1.25 million Jynneos vaccine doses have been administered in the U.S., according to the CDC.

In addition to the bulk vaccine production, Bavarian Nordic will supply $3 million worth of liquid-frozen doses in 2023. The rest of the contract, amounting to $21 million, will cover various additional services, with payments expected over the next two years.

Over the course of 2022 and 2023, Bavarian Nordic manufactured approximately 5.5 million doses of the smallpox/mpox vaccine for the US government. However, replenishing the bulk inventory is necessary to fulfill the company’s commitment to deliver a freeze-dried version of the vaccine for US smallpox preparedness.

This new contract, combined with other smaller mpox vaccine orders, expected savings from a discontinued RSV program, and the acquisition of travel vaccines from Emergent BioSolutions, has led Bavarian Nordic to increase its financial forecast for the year. The company now anticipates revenue of 6.9 billion Danish kroner (approximately $882 million), up from the previous estimate of 6 billion Danish kroner.

“The U.S. government’s foresight enabled us last year to rapidly respond to the global mpox outbreak by converting readily available bulk products into final vaccine doses. Together with our U.S. manufacturing partner, we have completed the manufacturing of all doses ordered by the U.S. government during the mpox outbreak. However, maintaining the readiness to respond to future health crises is essential, and this new contract will enable us to deliver on the contract for a freeze-dried version of the vaccine, awarded to us by the U.S. government back in 2017, which aims to strengthen the nation’s preparedness against smallpox.”

– Paul Chaplin, President & CEO of Bavarian Nordic

Last year, Bavarian Nordic secured supply deals for its smallpox and mpox vaccine, Jynneos, with various governments worldwide. The vaccine’s efficacy was recognized by Time magazine, which named it one of the best inventions of the year, particularly for its role in curbing the mpox outbreak.

Bavarian Nordic has maintained its momentum in 2023, expanding its immunization offerings with the acquisition of vaccines from Emergent BioSolutions and the CDC’s real-world data endorsement for Jynneos. The data showed that Jynneos, given in two doses, is estimated to be 85.9% effective against mpox, and one dose is 75.2% effective.

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