Injection of success Bavarian Nordic

INJECTION OF SUCCESS

Vaccine-focused biotechnology company Bavarian Nordic is at the heart of developing and manufacturing vaccines for infectious diseases and lifethreatening illnesses. EmmaJane Batey spoke to CEO Anders Hedegaard to learn more about the company’s growth plans and major global contracts.

Established in Denmark in 1994, vaccinefocused biotechnology company Bavarian Nordic has rapidly and strategically grown to become a leading name in the development and manufacture of vaccines for the prevention and treatment of infectious diseases and life-threatening illnesses. Listed on the Copenhagen Stock Exchange, Bavarian Nordic has over 450 employees and 2012 expected revenues of DKK900.

With manufacturing, R&D and sales facilities in Denmark, Germany, and the USA, Bavarian Nordic has a strong global footprint. Divided into three core competences, Bavarian Nordic offers vaccines in the fields of cancer, biodefence and infectious diseases.

Government growth

A major element in its ongoing success is the company’s highly valuable long-term contract with the US Government for the development and manufacture of a smallpox vaccine. CEO Anders Hedegaard told Industry Europe, “Our development of a vaccine against smallpox is the very core of the company. Post 9-11, the US Government

dedicated huge resources to upgrading its preparedness for a bio-terrorist attack, and having a reliable, effective store of modern smallpox vaccines is integral to that. The turnover of our biodefence unit has been sustainable thanks to this flow of orders from the US Government.”

Bavarian Nordic’s contract with the US Government has seen it gain almost $800m in development and procurement funding, which has been an important aspect in its investment programme. Mr Hedegaard explained, “This investment has enabled us to create and sustain a wonderful infrastructure, the benefits of which are continually passed on to our customers. The US Government’s focus on stockpiling a new third-generation smallpox vaccine has been a key driver in our growth, particularly as it demands the very highest standards throughout every aspect of dealing with us here at Bavarian Nordic. The US Government and all our other customers can be assured that our development and manufacture of vaccines meets all of the most stringent certifications, and we are regularly audited by the US Government to ensure this is continually the case.”

This $800m investment not only allowed for the ongoing development and manufacture of a third generation smallpox vaccines but also for the establishment and maintenance of a technologically advanced facility, including all the relevant logistics provisions

required, making Bavarian Nordic’s capabilities and infrastructure second to none in the biotechnology industry.

The US Government contract remains Bavarian Nordic’s most important programme, and this is expected to continue; however, the company is also keen to highlight its capabilities beyond this part of its business. As a biotechnology company that has steadily expanded beyond its initial core focus on developing and manufacturing a smallpox vaccine, Bavarian Nordic is now looking to build on its highly sophisticated vaccine development capabilities and branch into areas where these skills are also valued.

New product development

Bavarian Nordic’s core competences, high levels of investment in its infrastructure and its aim to expand its offer beyond smallpox vaccines is already seeing strong results in terms of new product development. Now, the company’s present and future activities will continue to have smallpox vaccines at its heart, but this is also joined by cancer vaccines and vaccines for other infectious diseases and life-threatening illnesses.

Mr Hedegaard said, “We are aiming to broaden our portfolio beyond smallpox, in order to create and maintain a diverse business structure that capitalises on our abilities and experience in developing and manufacturing a third-generation smallpox vaccine for

the US Government. Our core technology is applicable and transferable to other disease areas, particularly cancers such as breast cancer, prostate cancer and ovarian cancer.”

Mr Hedegaard also explained that Bavarian Nordic’s biotechnology expertise is being wellutilised in its development and manufacture of Prostvac, a vaccination for the prevention and treatment of prostate cancer. He said, “Prostvac is currently at the third phase of development. It has been created as a late stage cancer vaccine offering a life-extending possibility rather than as a prophylactic vaccine. Once we have passed the final phase of development we will move on to the marketing of Prostvac and make it commercially available. We expect to establish a global partnership with pharmaceutical partners to bring Prostvac to market following a successful phase 3.”

Bavarian Nordic’s expected growth will come from both new product development, such as Prostvac, and its ongoing focus on biodefense vaccines. The US Government contract will continue to sustain the infectious disease unit, with this unit also moving into other vaccine areas for the commercial sector, including vaccines for RSV and yellow fever which is currently in the early stages of development. Mr Hedegaard concluded, “Our vision is to create Bavarian Nordic as a fully integrated pharmaceutical company. We are currently seen as a strong biotechnology company with an impressive R&D function, and we want to make sure that potential customers and partners are aware of our extensive development potential and manufacturing capabilities too.” n