Denmark-based vaccines company Bavarian Nordic A/S (CPH:BAVA) announced on Thursday that it has received a contract from the Biomedical Advanced Research and Development Authority (BARDA) to manufacture additional bulk product for its JYNNEOS smallpox/mpox vaccine.

BARDA is part of the Administration for Strategic Preparedness and Response within the US Department of Health and Human Services.

Valued at a total of USD156.8m, the contract includes USD139.7m for bulk product manufacturing in 2024, which will replenish inventory used during the 2022 mpox outbreak. This replenishment is necessary to fulfil the company's existing contract for a freeze-dried version of the vaccine for US smallpox preparedness.

The contract also includes approximately USD17m for additional services between 2025 and 2027, including vaccine storage in the United States.

While the contract will not impact Bavarian Nordic's 2024 financial guidance, it will increase the value of secured contracts in the Public Preparedness business from approximately DKK1.6bn to around DKK2.5bn. The company expects total revenue of DKK5.0-5.3bn for the year, with EBITDA reaching DKK1.1bn to DKK1.35bn.

(USD1=DKK6.84)