Bavarian Nordic's DKK 150 Million Share Buy-back: A Strategic Move

Bavarian Nordic A/S, a global vaccine company, has announced its intent to launch a share buy-back program worth DKK 150 million in the first quarter of 2025. This strategic move is a testament to the company's strong financial position and confidence in its future prospects. The program aims to adjust the capital structure and meet long-term obligations relating to share-based incentive programs for the Board of Directors and Executive Management.

The decision to launch the share buy-back program is driven by several factors, including improved visibility around the Company's Travel Health business and a strong financial position. Bavarian Nordic has recently experienced a better-than-expected performance in its Travel Health business, as demonstrated by a recent guidance upgrade. Additionally, the company has successfully completed the tech-transfer of rabies and TBE vaccines from GSK on time and on budget, which is expected to improve gross margins from 2026 onwards.

The completion of the tech-transfer and integration projects has significantly enhanced Bavarian Nordic's financial position. The company anticipates a significantly improved cash flow following the payment of final considerations related to acquisitions, totaling ~DKK 1,700 million during the first half of 2025. Furthermore, the near-term completion of the integration of assets acquired from Emergent BioSolutions in 2023 is expected to generate annual savings of DKK 50-75 million from 2025 and onwards.

The share buy-back program is a strategic move that aligns with Bavarian Nordic's long-term capital allocation strategy and commitment to shareholder value creation. By repurchasing shares, the company aims to adjust its capital structure and meet long-term obligations relating to its share-based incentive programs. This move demonstrates Bavarian Nordic's confidence in its financial position and its commitment to enhancing shareholder value.

In conclusion, Bavarian Nordic's decision to launch a DKK 150 million share buy-back program is a strategic move driven by improved visibility around its Travel Health business and a strong financial position. The program is expected to commence in the first quarter of 2025 and is a result of the company's successful completion of tech-transfer and integration projects. By repurchasing shares, Bavarian Nordic aims to adjust its capital structure and meet long-term obligations relating to its share-based incentive programs, ultimately enhancing shareholder value.