Bavarian Nordic Granted EUR 50 Million Loan from The European Investment Bank
The Company upgrades its expectations to year end cash preparedness
KVISTGAARD, Denmark, May 12, 2015 - Bavarian Nordic A/S (OMX: BAVA, OTC: BVNRY) today announced the securing of a loan facility of EUR 50 million from the European Investment Bank (EIB), the long-term lending institution of the European Union owned by its Member States.
EIB has granted the loan facility to support the research and development of novel vaccines against Ebola and other infectious diseases as well as cancer immunotherapies. The loan facility provides Bavarian Nordic an opportunity to accelerate its growth strategy with the clinical development of a vaccine against respiratory syncytial virus (RSV) for which no vaccine exists, and prioritizing the development of its CV-301 cancer immunotherapy candidate, which holds promise in multiple cancer indications.
Paul Chaplin, President & Chief Executive Officer of Bavarian Nordic, said: "Public investment continues to be a critical component of the advancement of research and development for public health preparedness. Bavarian Nordic has been at the forefront of this for over a decade and we look forward to continuing these efforts well into the future. We are proud to be selected by EIB in support of the fight against infectious disease and cancer. The EIB loan provides a unique opportunity to increase our financial flexibility on attractive terms, and enables us to continue our growth strategy and unlock the potential of our innovative vaccine platform technology."
The loan facility, which is unsecured, is offered on favorable terms and may be utilized in one or more tranches. Under the terms of the agreement, Bavarian Nordic will have up to 18 months to draw on these monies. The loan is a three to five year bullet loan and could potentially carry a fixed or variable interest payment, the margin associated with the loan facility is 3.26%.
As a result of the loan facility agreement, the Company upgrades its expectations to year-end cash preparedness from DKK 1,100 million to DKK 1,450 million.
Rolf Sass Sørensen
Vice President Investor Relations (EU)
Tel: +45 61 77 47 43
Vice President Investor Relations (US)
Tel: +1 978 341 5271
About Bavarian Nordic
Bavarian Nordic is a biopharmaceutical company focused on the development and manufacturing of cancer immunotherapies and vaccines for infectious diseases. Through a long-standing collaboration with the U.S. Government, Bavarian Nordic has developed a portfolio of biological countermeasures, including the non-replicating smallpox vaccine, IMVAMUNE®, which is stockpiled for emergency use by the U.S. and other governments. The vaccine is approved in the EU (under the trade name IMVANEX®) and in Canada. Bavarian Nordic and its partner Janssen are pioneering the development of an Ebola vaccine, which has been fast-tracked by authorities in response to the current situation in West Africa. Additionally, in collaboration with the National Cancer Institute, Bavarian Nordic has developed a portfolio of active cancer immunotherapies based on its versatile pox-virus based technologies, including PROSTVAC®, which is currently in Phase 3 clinical development for the treatment of advanced prostate cancer. The company has partnered with Bristol-Myers Squibb for the potential commercialization of PROSTVAC. For more information visit www.bavarian-nordic.com or follow us on Twitter @bavariannordic.
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. 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.