Bavarian Nordic Buyout Bid Fails, Company to Remain Independent

Bavarian Nordic, the Danish vaccine maker, will continue as an independent entity after a proposed private equity buyout failed to secure sufficient shareholder support. The offer, made by Nordic Capital and Permira through a newly formed company called Innosera, fell short of the required 66.7% shareholder acceptance, garnering only 60% approval by the November 5 deadline.

Buyout Offer Details and Market Reaction

The final offer of 250 Danish Krone per share ($38.61) was marketed as the "best and final price" by the private equity consortium. This improved valuation aimed to address "greater clarity on several key macroeconomic risks" and allow shareholders to realize their investment without bearing the risks associated with Bavarian Nordic's long-term growth strategy.

Following the news of the failed buyout, Bavarian Nordic's shares plummeted by 20% in early Thursday trading, dropping to $9.61 from the previous close of $12.02.

Shareholder Opposition and Company Outlook

The buyout faced opposition from key stakeholders, including Denmark's largest pension fund, ATP, which holds over 10% of Bavarian Nordic's shares. ATP had previously stated that "neither the timing nor the price of the presented offer reflects the opportunities we see in the company."

Despite the setback, Bavarian Nordic's management remains optimistic about the company's future. Luc Debryune, chair of the board of directors, stated that the company is "well positioned to continue to grow" and expressed full confidence in the management's ability to execute their strategy. The board now sees an opportunity to "rebuild a value-creating dialogue" with shareholders and stakeholders, with plans for an upcoming shareholders' information meeting to discuss the company's strategy, financial ambitions, and leadership continuity.

Recent Performance and Future Prospects

Bavarian Nordic's recent financial report showed promising results, with a 16% increase in second-quarter sales and a 33% gain over the first half of the year compared to the previous year. The company has raised its 2025 revenue guidance to between DKK 6 billion ($927 million) and DKK 6.6 billion ($1.02 billion).

CEO Paul Chaplin attributed the strong sales performance to the company's "successful commercial transformation" over recent years. A key highlight is the launch of Vimkunya, Bavarian Nordic's chikungunya vaccine, which received U.S. approval in February with a broader label than its competitor, Valneva's Ixchiq.

The vaccine market landscape presents both opportunities and challenges for Bavarian Nordic. While global chikungunya disease outbreaks could boost demand for Vimkunya, especially after Ixchiq's U.S. market suspension due to safety concerns, the industry faces uncertainty amid shifting U.S. vaccine policies under new leadership at the Department of Health and Human Services.