Bavarian Nordic inks another major vaccine contract with Canada
As monkeypox cases continue to affect nations in North America and across the globe, Canada is looking to step up its prevention efforts via a boosted contract with Bavarian Nordic.
The Public Health Agency of Canada (PHAC) announced on Tuesday that it has changed its contract with the Danish drugmaker. The agreement will see Bavarian Nordic deliver its Jynneos vaccine, also known as Imvamune, to the PHAC at a value of $234 million, in addition to $180 million in contract options spanning 10 years.
This move extends an original five-year, $56 million contract with Bavarian Nordic that was granted in June to a total value of $470 million. The bulk of the delivery is expected next year; however, the exact amount of doses to be shipped was not disclosed.
Another contract has also been granted to Canada’s Department of National Defense, with a $2 million value and $18 million in additional options available.
“As a trusted supplier of smallpox vaccines to the Canadian authorities since 2008, we are pleased to extend and expand our collaboration for the next decade, thus helping to maintain the readiness for Canada to respond quickly to emergencies, such as the current monkeypox outbreak,” said Bavarian Nordic CEO Paul Chaplin in a statement.
The deal also comes at a time when the monkeypox case count in Canada sits north of 1,300 cases, according to the CDC. However, in a report from the CBC, WHO General Director Tedros Adhanom Ghebreyesus said that cases in Canada were beginning to show a “sustained downward trend” mainly due to public health initiatives. Similar downward trends have been observed in the US too.
The move also gave Bavarian Nordic $BAVA a 6% raise today in its share price. However, the company is still facing a 44% drop in its share price from last year, despite a bump at the beginning of the monkeypox outbreak.
In the US, where cases sit well above 23,000 since the outbreak began, Bavarian Nordic’s manufacturing facility in Denmark was given a thumbs-up from the FDA to expand production this summer. And in order to get US production going even further, CDMO Grand River Aseptic Manufacturing nabbed a deal with Bavarian Nordic to fill and finish the vaccine for wider US distribution.