Biotechnology company Bavarian Nordic A/S (OMX: BAVA, OTC: BVNRY) revealed on Tuesday that it has completed the acquisition of the manufacturing and global rights to two commercial vaccines from GlaxoSmithKline plc (GSK) - Rabipur/RabAvert and Encepur.

Bavarian Nordic said it made an upfront payment of EUR307.6m to GSK on closing of the acquisition, which was previously announced on 21 October 2019. This upfront payment amount has been adjusted by EUR6.6m due to variance between the currently and the previously estimated inventory at 31 December 2019. The upfront payment is initially financed with the company's existing cash and bridge financing provided by Citi and Nordea.

To support the acquisition, including repayment of the bridge financing, Bavarian Nordic has planned a rights issue of approximately EUR350m on Nasdaq Copenhagen in the first half of 2020. The rights issue is fully underwritten by Citi and Nordea as Joint Global Coordinators.

In addition, the company said it has decided to reduce the bridge loan facility, thus drawing more on its existing cash for the upfront payment. Accordingly, the company is adjusting its expectations to the 2019 year-end cash preparedness from approximately DKK1,000m to approximately DKK700m. This adjustment will be offset by income from the recently announced sale of the Priority Review Voucher, a transaction which is pending antitrust clearance in early 2020.