Edison Issues ADR Update on Bavarian Nordic

Apr 26, 2016, 11:47 ET from Edison Investment Research

LONDON, April 26, 2016 /PRNewswire/ --

The current weak US IPO conditions have resulted in a slight change of plan for Bavarian Nordic. It recently shelved its US listing plans and instead completed a private share placement, which raised c $100m vs. the expected $86m in the F-1 filing. New funds will be used for the same purposes as the IPO, namely advancing the development of CV-301, MVA-BN RSV and for capex. Prostvac has passed its first interim analysis and the Phase III trial will continue without modification.

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We are updating our valuation to $1.97bn or $21.4/ADR (from $1.83bn or $65.55/ADR) on account of rolling forward in time, updating net cash and a strengthening DKK/US$ rate. With an improved cash runway, there is now more clarity on development plans/timelines for MVA-BN RSV and CV-301. RSV is a significant opportunity; however, in the absence of clinical data, we do not yet include a contribution for MVA-BN RSV. CV-301, which has clinical data and will be tested in three oncology indications, is now included in our valuation. Further insight into the clinical program for MVA-BN Brachyury (not yet included in our valuation) and additional income from J&J for MVA-BN Filovirus and MVA-BN HPV represent further upside.

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SOURCE Edison Investment Research