Date: 2014-10-22
Type of information: Licensing agreement
Compound: MVA-BN® Ebola Vaccine
Company: Bavarian Nordic (Denmark) Crucell, a J&J company (USA - NJ)
Therapeutic area: Infectious diseases
Type agreement: licensing supply
Action mechanism:
Disease: Ebola fever
Details: * On October 22, 2014, Bavarian Nordic announced a global license and supply agreement for its MVA-BN Filovirus (Ebola and Marburg) vaccine candidate with Crucell Holland B.V., one of the Janssen Pharmaceutical Companies of Johnson & Johnson. Under the terms of the agreement, Bavarian Nordic will grant Janssen an exclusive license for its multivalent MVA-BN Filovirus vaccine, designed to protect against Ebola Zaire, Ebola Sudan and Marburg virus. In addition, Bavarian Nordic will scale up its production and is targeting to manufacture more than 1 million doses of the vaccine valued at US$ 99.3 million, of which Janssen will make an upfront payment of US$ 70.8 million. The remaining US$ 28.5 million will be received pro rata with deliveries in 2015.
A combination vaccine regimen of Bavarian Nordic’s multivalent MVA-BN Filovirus vaccine and Janssen’s AdVac® technology recently demonstrated complete protection against Ebola in preclinical studies and Janssen will now undertake further clinical investigation of this regimen. Furthermore, Janssen is working closely with authorities as part of its prioritized efforts to make the vaccines available for emergency use to help contain the current outbreak in West Africa.
Financial terms: Bavarian Nordic will receive an upfront payment of US$ 25 million and is entitled to up to US$ 20 million in development and regulatory milestones, in addition to royalties for commercial sales outside Africa. Janssen will be fully responsible for all costs associated with the development and commercialization of the vaccine. Additionally, through a private placement, Johnson & Johnson Development Corporation will invest DKK 251 million (approximately US$ 43 million) to subscribe for new shares of Bavarian Nordic. As a consequence of the agreement, the Company raises its expectations for the year-end cash preparedness from approximately DKK 600 million to DKK 1,000 million including a reduction in debt and credit facilities of approximately DKK 150 million. The expectations for full year revenues and result are maintained as the vast majority of the agreement will be revenue recognized in 2015.
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