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Bavarian Nordic A/S (OTC: BVNRY) has agreed to acquire two marketed travel vaccines, Vivotif for the prevention of typhoid fever and Vaxchora against cholera, from Emergent BioSolutions Inc (NYSE: EBS).
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The company will also acquire a Phase 3 vaccine candidate to prevent the Chikungunya virus.
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The deal consideration of $380 million includes $270 million in an upfront payment and up to $110 million in future conditional milestone payments.
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The acquisition also includes facilities and key personnel related to the acquired assets.
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Also Read: 'Waiting Game Continues' In Emergent BioSolutions, Analysts Cut Price Target.
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A late-stage vaccine candidate targeting Chikungunya with expected Phase 3 read-out in the second half of 2023 and projected launch in 2025.
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Approximately 280 current Emergent employees are expected to join Bavarian Nordic as part of the transaction.
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The acquisition enables the expansion of Bavarian Nordic's US commercial sales, marketing, and distribution setup and increased scale in more European markets where the company is not present today.
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The acquired business is expected to add approximately DKK 200 million to revenue and a loss of approximately DKK 400 million to EBITDA, not included in the previously announced financial guidance for 2023.
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The expected loss is due to investments in the Chikungunya Phase 3 program and the inclusion of necessary one-off integration costs.
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This transaction is expected to close in the first half of 2023.
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Price Action: EBS shares are up 10.48% at $14.65 during the premarket session on the last check Wednesday.
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This article Monkeypox Vaccine Maker Bavarian Nordic Bets $380M On Emergent Bio's Travel Vaccines originally appeared on Benzinga.com
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