Bavarian Nordic Secures $157M Contract to Replenish US Supplies of Smallpox/Mpox Vaccine Jynneos
Bavarian Nordic, a Danish biotechnology company, has recently secured a substantial contract worth $156.8 million from the United States government to replenish the nation’s stockpile of the smallpox and mpox vaccine, Jynneos. This deal marks a significant milestone for Bavarian Nordic as it continues to play a crucial role in global health security. The contract, which was announced earlier this year, aims to address the urgent need for vaccine preparedness in light of the 2022 mpox outbreak that highlighted vulnerabilities in the existing vaccine supply chain. The agreement underscores the importance of maintaining robust stockpiles to mitigate the risks posed by infectious diseases.
The Biomedical Advanced Research and Development Authority (BARDA), a key player in the US government’s efforts to enhance national health security, has been instrumental in facilitating this contract. BARDA’s involvement is not new; the agency has a long history of collaboration with Bavarian Nordic, particularly in the development and approval of a freeze-dried version of the Jynneos vaccine. This freeze-dried formulation received FDA approval in 2019 and offers several advantages, including a longer shelf life and improved stability, making it an ideal candidate for stockpiling and emergency use.
The new contract with BARDA is designed to fulfill Bavarian Nordic’s existing commitment to supply the freeze-dried version of the Jynneos vaccine for smallpox preparedness. Under the terms of the agreement, Bavarian Nordic will receive $139.7 million for the production and invoicing of the vaccine bulk product, which is scheduled to be manufactured in 2024. Additionally, an extra $17 million has been allocated to support various services from 2025 to 2027, including the storage of vaccine doses within the United States. This comprehensive approach ensures that the vaccine will be readily available when needed, enhancing the country’s readiness to respond to potential outbreaks.
The significance of this contract extends beyond financial implications. It highlights the ongoing risk posed by mpox, a disease that, despite no longer being classified as a medical emergency, continues to affect hundreds of individuals each month in the United States. According to recent data, over 32,000 cases of mpox have been reported in the US since the 2022 outbreak. This persistent threat underscores the necessity of maintaining an adequate vaccine supply to protect vulnerable populations and prevent further spread of the disease.
Bavarian Nordic’s CEO, Paul Chaplin, has emphasized the critical role that the Jynneos vaccine plays in US biological preparedness. Developed under Project Bioshield, a public-private partnership initiative, Jynneos was the first smallpox vaccine to be created with non-replicating technology. This innovative approach not only enhances the vaccine’s safety profile but also makes it suitable for individuals with compromised immune systems, who are often at higher risk during outbreaks. The success of Jynneos serves as a testament to the effectiveness of collaborative efforts between government agencies and private companies in addressing public health challenges.
In addition to its work on the Jynneos vaccine, Bavarian Nordic has been actively involved in other areas of vaccine development and manufacturing. The company has a diverse portfolio that includes travel vaccines and contract manufacturing services, which contribute significantly to its overall revenue. For the year 2024, Bavarian Nordic anticipates total sales of between 5 billion and 5.3 billion kroner, driven by strong performance in both its public preparedness business and other commercial ventures. This represents an increase from initial sales projections, reflecting the company’s robust growth and strategic positioning in the global vaccine market.
The recent contract with BARDA is expected to bolster Bavarian Nordic’s financial outlook for 2024, particularly in the public preparedness segment. The company projects that this part of its business will generate between 2.7 billion and 3 billion kroner in revenue for the year. While the new agreement will not alter Bavarian Nordic’s overall financial guidance, it will enhance the value of secured contracts within the public preparedness domain. This strategic alignment with government priorities underscores Bavarian Nordic’s commitment to supporting national and international health security initiatives.
The commercial launch of the Jynneos vaccine in the United States earlier this year has further solidified Bavarian Nordic’s presence in the market. The vaccine is now accessible to the public through local pharmacies, physician offices, and designated clinics, making it easier for individuals at risk of mpox infection to receive protection. The Centers for Disease Control and Prevention (CDC) has also played a pivotal role in promoting the vaccine, with its Advisory Committee on Immunization Practices recommending Jynneos as a routine vaccination for adults at risk of mpox infection. This endorsement from a leading public health authority underscores the vaccine’s importance in preventing disease transmission and safeguarding public health.
The collaboration between Bavarian Nordic and the US government is not a recent development. The partnership dates back to 2003 when the company first began working with US authorities on the development of a non-replicating smallpox vaccine. Over the years, this collaboration has yielded significant advancements, including the development of the freeze-dried version of Jynneos, which BARDA supported in 2017. The freeze-dried formulation serves as a critical component of the national stockpile, ensuring that the vaccine remains effective and accessible over extended periods.
In response to the 2022 mpox outbreak, BARDA requested the liquid-frozen version of the Jynneos vaccine to address the immediate need for immunization. This swift action highlights the flexibility and responsiveness of the partnership between Bavarian Nordic and US government agencies. The first replenishment contract, awarded in 2023, paved the way for the production and supply of freeze-dried doses in 2024, reinforcing the nation’s preparedness for future outbreaks. The ongoing collaboration between Bavarian Nordic and BARDA exemplifies the proactive measures taken to safeguard public health and mitigate the impact of infectious diseases.
Bavarian Nordic’s strategic focus on vaccine development and public health preparedness has positioned the company as a key player in the global biotechnology landscape. Its commitment to innovation and collaboration with government agencies has resulted in the successful development and deployment of critical vaccines like Jynneos. As the company continues to expand its portfolio and strengthen its market presence, it remains dedicated to addressing emerging health threats and contributing to global health security. The recent contract with BARDA is a testament to Bavarian Nordic’s ongoing efforts to enhance vaccine availability and protect populations from infectious diseases.
Looking ahead, Bavarian Nordic anticipates further opportunities for growth and collaboration in the public health sector. The company is poised to leverage its expertise and resources to develop new vaccines and therapeutic solutions that address unmet medical needs. With a strong foundation built on successful partnerships and innovative research, Bavarian Nordic is well-positioned to navigate the evolving landscape of global health challenges. The continued support from government agencies like BARDA will be instrumental in advancing these efforts and ensuring that the company remains at the forefront of vaccine development and public health preparedness.
In conclusion, Bavarian Nordic’s recent $156.8 million contract with the US government to replenish the Jynneos vaccine stockpile underscores the critical importance of maintaining robust vaccine supplies for smallpox and mpox preparedness. The collaboration with BARDA and other government agencies highlights the effectiveness of public-private partnerships in addressing public health challenges. As Bavarian Nordic continues to innovate and expand its portfolio, it remains committed to safeguarding public health and enhancing global health security. The company’s strategic focus on vaccine development and preparedness positions it as a key player in the fight against infectious diseases, ensuring that populations are protected and resilient in the face of emerging health threats.