New EU vaccine deal complicates Bavarian Nordic takeover

Bavarian Nordic has secured a new long-term contract to supply the European Union with up to 8 million doses of its smallpox and mpox vaccine over the next four years, the company said Friday.

The announcement of the significant supply deal comes just days before a Nov. 5 deadline for a takeover offer from a private equity consortium, potentially strengthening the position of shareholders holding out against the bid.

The new procurement agreement with the European Commission’s Health Emergency Preparedness and Response Authority replaces a previous deal from 2022 and now includes 20 European countries.

According to the company, an initial commitment for approximately 1.1 million doses has already been made, with the first 750,000 doses expected to be supplied in 2026.

The Danish vaccine maker is the target of a takeover by firms including Nordic Capital and Permira, which have struggled to win enough shareholder support, recently lowering their minimum acceptance threshold.

"We are pleased to extend our collaboration with HERA to facilitate broad access to our smallpox and mpox vaccine across the region," said Paul Chaplin, President and CEO of Bavarian Nordic.

"This agreement is a recognition of public health security as part of the resilience that the EU is building to unify against threats on a larger scale, and we are proud to be part of the endeavors to safeguard Europe’s citizens against life-threatening diseases."