Bavarian Nordic Receives USD 50 Million Advance Payment From the U.S. Government for Fulfilling Contract Milestones
2007 OCT 22 -- Bavarian Nordic has received permission from the U.S. authorities to invoice an advance payment of USD 50 million as allowed under the RFP-3 contract to manufacture and deliver 20 million doses of the company's, IMVAMUNE(R) smallpox vaccine. The permission has been granted because the company has fulfilled a number of significant milestones in the contract. The income will be recognised as revenue in the financial statements as the vaccines are delivered. Delivery will start once an Emergency Use Authorization for IMVAMUNE(R) is granted. As previously announced, in addition to the advance payment of USD 50 million, the company expects to receive two additional milestone payments each of USD 25 million in 2007 for fulfilling other significant milestones. The advance payment does not affect the previously announced guidance for the company's 2007 result. Anders Hedegaard, President & CEO of Bavarian Nordic, said:" We are very satisfied that we have now already fulfilled several significant milestones as agreed with the U.S. Department of Health and Human Services. With the advance payment and the future milestone payments, we have created a solid financial base for our further development. " Keywords: Bavarian Nordic GmbH, Biotechnology, Biotechnology Business, Biotechnology Company, Vaccines, Bavarian Nordic A/S. This article was prepared by Biotech Business Week editors from staff and other reports. Copyright 2007, Biotech Business Week via NewsRx.com.
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