Danish vaccines company Bavarian Nordic A/S (CPH:BAVA) announced on Tuesday a new agreement with the Public Health Agency of Canada (PHAC) for the purchase of its IMVAMUNE smallpox vaccine at a value of approximately USD56m.

The non-replicating smallpox vaccine is also approved for use against monkeypox in Canada.

Deliveries of vaccines under this five-year contract are expected to start in 2023.

Bavarian Nordic also said that it is continuing to secure contracts with other countries to supply the vaccine to help mitigate the current monkeypox outbreak and to explore opportunities for longer term collaboration to build stockpiles for future preparedness.