Release Date: November 15, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Bavarian Nordic AS (BVNKF, Financial) reported strong growth in its travel health portfolio, surpassing revenue consensus for travel health and public preparedness.
- The company is preparing for the launch of its new Chikungunya vaccine, with regulatory reviews underway in the US and Europe, and a planned approval for next year.
- Bavarian Nordic AS (BVNKF) has secured strong orders for its pox vaccine for the next year, with 2.4 billion DKK in revenues already confirmed for its public preparedness business.
- The company successfully completed the tech transfer for its rabies vaccine from GSK, achieving regulatory approvals on time and on budget, which is expected to improve gross margins.
- Bavarian Nordic AS (BVNKF) has expanded its commercial presence in new markets such as the UK, Canada, and France to support the upcoming Chikungunya vaccine launch.
Negative Points
- The market for Bavarian Nordic AS (BVNKF)'s cholera and typhoid vaccines has not recovered since COVID-19, leading to negative growth and product returns.
- The company faces logistical challenges in delivering vaccines to African nations, which could impact revenue recognition for the current year.
- There is uncertainty regarding future demand for vaccine manufacturing in Africa, which affects decisions on tech transfer investments.
- Bavarian Nordic AS (BVNKF) has a wide revenue guidance range due to uncertainties in logistics and supply chain execution.
- The company is facing challenges in expanding its vaccine label to include pediatric use, requiring careful consideration of ethical and risk factors.
Q & A Highlights
Q: Could you clarify the plans for fill-finish capacity in Africa and the visibility needed for investment?
A: Paul Chaplin, President & CEO: We are open to a tech transfer for manufacturing in Africa, supported by the African CDC. However, both the companies in Africa and ourselves need clarity on future demand to justify the investment. We are in dialogue with stakeholders to understand this demand, which would influence our decision to proceed with the tech transfer.
Q: Why was there a delay in WHO granting prequalification status after the 2022 outbreak, and why weren't pediatric studies conducted earlier?
A: Paul Chaplin, President & CEO: Pediatric studies require careful consideration of risk, and without an outbreak, it wasn't feasible to justify testing. The current outbreak has changed this scenario. Regarding WHO prequalification, we submitted the necessary documents in 2023, but priorities may have shifted due to the new outbreak.
Q: What are your thoughts on the potential impact of RFK Jr.'s appointment as health secretary on vaccine-related businesses?
A: Paul Chaplin, President & CEO: During Trump's first term, the biodefense business was well-supported, and we anticipate continued strength in the preparedness business. Regarding vaccines, we should focus on facts and wait to see the actual policies that will be implemented.
Q: Can you provide more details on the current order book for 2025 and its implications?
A: Henrik Juuel, CFO: Our order book for 2025 stands at DKK 2.4 billion, already surpassing the base business expectations of DKK 1.5 to 2 billion. Any undelivered orders from 2024 will add to this, indicating a strong position for next year.
Q: How is the travel health business performing, and what are the expectations for the rest of the year?
A: Henrik Juuel, CFO: The travel health business has shown strong growth, with a 21% increase in Q3. We have upgraded our guidance for this segment to DKK 2.2 billion due to its robust performance. We expect continued strength in this area.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
