Bavarian Nordic Pivots to Travel Health as Chikungunya Vaccine Launch Approaches

Bavarian Nordic, the Danish vaccine specialist, is shifting its focus towards travel health as it prepares for the launch of its newly approved chikungunya vaccine, Vimkunya. This strategic move comes as the company aims to diversify its revenue streams and reduce dependence on government contracts for public preparedness.

Travel Health Business Shows Promise Amid Public Preparedness Decline

Bavarian Nordic reported a 19% drop in total revenue to 5.7 billion Danish kroner (approximately $527 million) for 2024. This decline was primarily attributed to a 44% decrease in the company's public preparedness business, which includes smallpox and mpox vaccines. However, the company's travel health segment demonstrated strong growth, with a 22% increase in revenue.

CEO Paul Chaplin highlighted the company's ongoing transformation, stating, "We started a journey, back in 2020 really, to become a much more robust, profitable vaccine company. [20]24 was our fifth consecutive year now of reporting profitable growth."

Chikungunya Vaccine Launch and Market Development

The upcoming launch of Vimkunya, Bavarian Nordic's chikungunya vaccine, is set to be a significant focus for the company in 2025. Chaplin emphasized the importance of educating healthcare professionals about the virus and its severity to build market demand.

While demand for Vimkunya is already building in Europe and the U.S., the company faces some uncertainty in the American market due to the recent cancellation of a CDC advisory committee meeting that would have determined whether to recommend the vaccine. Chaplin noted that the lack of a positive recommendation could impact sales, but stressed that the company continues to push forward with its awareness efforts.

Future Outlook and Pipeline Developments

Bavarian Nordic aims to grow earnings by 26% to 30% in the coming year. The company has also unveiled two new early-stage pipeline programs for Lyme disease and Epstein-Barr virus, both of which are expected to enter clinical trials next year.

Chaplin expressed optimism about these new candidates, citing high unmet need and the use of existing, validated technologies. He also acknowledged the challenges posed by vaccine hesitancy but noted a recent "rebound" in vaccine uptake and strong growth in the sector.

As Bavarian Nordic continues to expand its commercial infrastructure globally and pursue potential M&A opportunities, the company anticipates its travel health portfolio will become the dominant component of its business strategy, providing more stable and predictable revenue streams in the years to come.