Bavarian Nordic shares soar as massive cancer deal is signed
The Danish biotech company Bavarian Nordic has been on the rise since it announced that it was part of a co-operation aimed at developing an Ebola vaccine last year. And today, the company took another massive step towards long-term success.
Bavarian Nordic has revealed that it has signed an agreement with the American pharmaceutical company Bristol-Myers-Squibb (BMS) involving the exclusive option to license and commercialise its prostate cancer vaccine Prostvac.
“We are proud to partner with Bristol-Myers Squibb, whose excellence and leadership in immuno-oncology provides a strong foundation for advancing Prostvac, which has the potential to become an essential component in the treatment of prostate cancer,” Paul Chaplin, the CEO of Bavarian Nordic, said.
“Leveraging the capabilities of Bristol-Myers Squibb’s science, we look forward to exploring the full potential of Prostvac in the future treatment paradigm of prostate cancer.”
Shares shoot up
The deal could potentially be worth 6.5 billion kroner and is the largest ever deal for the Danish company.
The agreement includes an option for BMS to launch and sell Prostvac over a certain period of time, depending on the results of the ongoing phase-3 studies.
The two companies have agreed that Bavarian Nordic will produce and distribute the vaccine.
Following the news of the deal today, Bavarian Nordic's share price shot up by close to 30 percent and is at its highest since the beginning of 2011.