Bavarian Nordic invests DKK 250 million in vaccine production in North Zealand, Denmark
Bavarian Nordic acquires a pharmaceutical production facility and establishes its own production of vaccines. The facility will be one of Europe's largest production sites for vaccines with the capacity to produce up to 120 million doses per year.
Bavarian Nordic has entered into an agreement with Orion Pharma to acquire over the Finnish pharmaceutical company's production facility and administrative offices located in Kvistgaard, 30 kilometres north of Copenhagen.
The total investment in the 26,000 m2 property and 9,000 m2 buildings along with the planned re-construction will be approximately DKK 250 million. This newly-created production facility will bring Bavarian Nordic up among the largest vaccine producers in Europe.
Another milestone for Bavarian Nordic Peter Wulff, CEO and President commented, "It is an important milestone for Bavarian Nordic's transformation from a biotech company to a biopharmaceutical industrial company that we have secured our own production facility. This guarantees that we can meet the growing international demand for our safe MVA vaccines, first and most importantly against HIV, but also against tropical diseases and smallpox. We have in the past set the new standards for development and production of vaccines, and with this step we strengthen our global leadership position within MVA vaccines."
Bavarian Nordic selects North Zealand, Denmark "Over the last year, we have evaluated several international options in the USA, Canada, Germany, France and Sweden. However the site in Kvistgaard offers significant advantages. The North Zealand region in Denmark offers unique conditions in relation to our need for a qualified workforce. The facility is relatively new and is perfect in terms of location, size and design - in fact, only a third of the buildings will be re-constructed. In addition, this decision is a better solution than building a new production facility. And last but not least, while we are an international company, we are also a Danish company that wants to further invest in Denmark." said CEO Peter Wulff.
Bavarian Nordic will move its administrative headquarters to Kvistgaard while the clinical trial materials facility will remain in Berlin. The company also has plans over the next year to significantly strengthen its research organisation in Munich.
The new vaccine facility will be ready for manufacture in 2005 and initially will produce vaccines against smallpox for the US and European markets along with various planned vaccines against HIV. The facility gives Bavarian Nordic the possibility to produce up to 120 million doses per year thereby making it one of Europe's largest sites for the production of vaccines. With the establishment of bulk production, Bavarian Nordic expects to hire 50 new employees. Should the company establish filling and packing at the site, there may be a need for an additional 60-80 employees.
The purchase price for Orion Pharma's facility and planned reconstruction will be covered by the company's existing liquidity, combined with its own income and bank financing.
The company's production partnership with the German vaccine manufacturer IDT will continue and be expanded due to the expected increase demand for vaccines against smallpox and HIV in the coming years.
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