DENMARK — Bavarian Nordic, a Danish vaccine maker, has announced that it will acquire Emergent Biosolutions Inc.’s travel-health business for a total of US$380 million.
The acquisition will expand Bavarian Nordic’s portfolio to include two travel vaccines, a late-stage vaccine candidate, research and development, manufacturing, and commercial capabilities.
The vaccines included in the acquisition are Vivotif for typhoid fever prevention, Vaxchora for cholera prevention, and a phase 3 vaccine candidate for the prevention of chikungunya virus.
The deal also includes a manufacturing facility in Switzerland, a research and development facility in the U.S., and EU and U.S.-based commercial operations.
The company expects that the acquisition will strengthen its position in the travel vaccine market and reinforce its pipeline with a late-stage vaccine candidate against chikungunya, which is an emerging infectious disease that represents a significant unmet medical need worldwide.
There are currently no approved vaccines against chikungunya, and analysts predict that the potential annual income from the vaccine could reach US$500 million.
Bavarian Nordic’s Chief Executive, Paul Chaplin, stated that the travel vaccine market is rebounding after the COVID-19 pandemic, and the expanded portfolio will allow the company to explore synergies in its commercial presence across key markets.
The additional manufacturing capabilities will provide the company with greater flexibility and scale in production as it continues to prepare for the launch of several new products in the next few years.
The company will pay US$270 million upfront, financed through existing cash and proceeds from a private placement, and up to US$110 million in future conditional milestone payments related to the development of the chikungunya vaccine and sales of the marketed vaccines.
The acquisition is expected to add around 200 million Danish kroner (US$28.8 million) to revenue this year, while investments in the chikungunya program and integration costs will hit earnings before interest, tax, depreciation, and amortization by DKK400 million (US$57.6 million).
The global travel vaccines market size reached US$3.6 billion in 2022. Looking forward, IMARC Group expects the market to reach US$ 56.5 billion by 2028, exhibiting a growth rate (CAGR) of 10.95% during 2023-2028.
The rise in international tourism from 1.0 billion in 2012 to nearly 1.4 billion in 2018 has led to a significant number of travelers from developed countries journeying to regions with endemic diseases.
As a result, the demand for travel vaccines has increased. Regulatory authorities worldwide have mandated that travelers should be vaccinated before traveling to disease-prone regions, making travel vaccines an essential requirement for international travelers.
A number of countries require all travelers to present a valid vaccination certificate against diseases such as yellow fever, Meningococcal meningitis, and Poliomyelitis.
Additionally, increasing awareness levels, technological advancements, and the rising incidence of life-threatening infectious diseases are also driving the demand for travel vaccines.
Meanwhile, according to recent reports, Bavarian Nordic is the only company with an approved mpox vaccine and has seen a surge in orders as the virus has become a global issue.
The company is anticipating revenue of approximately 6 billion Danish Krones (US$863 million) for 2023, which is a substantial increase from its preliminary 2022 results of 3.15 billion Krones (US$450 million).
A significant portion of this revenue, around 4.4 billion Krones (US$630 million), is expected to come from mpox and smallpox vaccine contracts alone.
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