Bavarian Nordic in negotiations with the US authorities for the further development of IMVAMUNE®

Kvistgaard, Denmark, August 24, 2009 - Bavarian Nordic A/S (OMX:
BAVA) announced today that the US authorities have initiated
negotiations for a new contract to develop a freeze-dried version of
the IMVAMUNE® smallpox vaccine. This potential new project will have
no influence on the ongoing RFP-3 BARDA (Biomedical Advanced Research
and Development Authority) contract for the procurement of 20 million
doses of IMVAMUNE® and the licensure of the current liquid-frozen
formulation, but represents an additional business opportunity.

Earlier this year BARDA published a Broad Agency Announcement (BAA)
soliciting proposals for the advanced development of medical
countermeasures against chemical, biological, radiological and
nuclear (CBERN) threats. In June, Bavarian Nordic submitted a
proposal for the development of a freeze-dried formulation of the
MVA-based smallpox vaccine, IMVAMUNE®. The proposal included the
validation of the production process and the preclinical and clinical
development to support the use of the new freeze-dried formulation of
IMVAMUNE® following a declared emergency.

A freeze-dried formulation of IMVAMUNE® offers various new advantages
in terms of increased shelf-life and improved stability of the
vaccine compared to the current liquid-frozen formulation.
Additionally, this will improve the cold-chain shipping logistics and
storage. These are all important criteria for governments around the
world that prioritise their bio terror preparedness.

The new technology for freeze-drying the vaccine will also be
applicable for other MVA-BN® based vaccines.

Anders Hedegaard, President & CEO of Bavarian Nordic said:"We are
happy about entering into negotiations with the US government on yet
another RFP for IMVAMUNE®. It clearly demonstrates their desire to
expand the ongoing collaboration beyond the existing contract to
deliver 20 million doses of IMVAMUNE® and we look forward to
exploring this exciting opportunity."



Asger Aamund
Chairman


Contact
Anders Hedegaard, President & CEO. Phone +45 23 20 30 64