Bavarian Nordic A/s · OMXCOP:BAVA
Bavarian Nordic A/s — Investor Day (February 2024)
41 slides from Bavarian Nordic A/s's investor day presentation, Feb 26, 2024
Slide 1: Capital Markets Day
Capital Markets Day Copenhagen 26 February 2024
Slide 2: Forward-looking statements
Forward-looking statements This presentation includes forward-looking statements that involve risks, uncertainties and other factors, many of which are outside of our control that could cause actual results to differ materially from the results discussed in the forward-looking statements. Forward-lo
Slide 3: Chairman introduction: Vaccines market and trends
Chairman introduction: Vaccines market and trends Luc Debruyne, Chairman 5
Slide 4: The value of vaccination and megatrends
The value of vaccination Vaccines prevent … save millions of lives every year >25 by preventing infectious diseases dangerous Make a difference infectious Vaccines … protect whole communities diseases play a pivotal not only individuals against dangerous diseases role in improving … are one of the b
Slide 5: Attractive business with barriers to entry
Attractive business with barriers to entry Growing market Pharma-like operating margins Long product life cycles , no patent cliffs Few global players Attractive business with barriers to entry Large capital investment Complex manufacturing and quality controls Depth of expertise across value chain
Slide 6: Business characteristics: Value and volume-based business model
Business characteristics: Value and volume-based business model Public and private market Quarterly volatility as the norm: Tenders: wins - timings - funding - pricing Value and volume- Government stockpiles: replenishments - based business model withdrawals Seasonality - outbreaks Supply 8
Slide 7: Vaccines product life cycle
Vaccines product life cycle Discovery Discovery Pre-licensure Pre-licensure R&D R&D Vaccines product Post-licensure Post-licensure R&D: R&D: Life Life cycle cycle management management life cycle: New New indications indications Combinations 1. No patent cliff Combinations 2. No generics Co-administ
Slide 8: Our transformation journey and strategic outlook
Our transformation journey and strategic outlook Paul Chaplin, President & Chief Executive Officer 10
Slide 9: Since 2020, we have transformed Bavarian Nordic into a pure-play vaccine company
Since 2020, we have successfully transformed Bavarian Nordic into one of the largest pure-play vaccine companies Three decades of excellence in R&D and vaccine …creating a focused and profitable manufacturing culminating in a successful vaccine specialty company with a strong transformation over the
Slide 10: From a strong heritage to an impactful future
From a strong heritage to an impactful future Growing the commercial portfolio Establishing Travel Health and Public Preparedness as two successful franchises Public preparedness • Hypothesis on scalable platform confirmed and first signs of Developed and commercialized our proprietary MVA platform:
Slide 11: Our way forward
Scenario testing Our way forward A pioneering force in vaccines – expanding our reach and impact through life-changing solutions Deliver Strong focus on organic Expand base growth supported by Drive growth in continued Travel Health business within selective and growth Public Preparedness synergisti
Slide 12: Committed to improving and saving lives
Addressing the impact of climate change on people's health Expanding Our commitment to developing a sustainable business is integral to access to lasting success in global markets. vaccines Through collaboration with local partners and institutions, we aim to expand our commercial footprint Committe
Slide 13: Deliver continued growth: Travel Health
Deliver continued growth Drive growth in our leading position within Travel Health Key growth drivers: Travel Health Revenue 1 Cont’d market growth driven by increased travel 10-12% CAGR TBE & Cont’d strong brand performance through dedication and focus 2023A to 2027E Rabies Geographical expan
Slide 14: Expanding the Public Preparedness business
Deliver continued growth Expanding the Public Preparedness business Historical development in Public Preparedness Public Preparedness business going forward Base business from existing partners DKK 1.5-2.0bn annual sales expected from the US, Canada and repeat Sales in 2022 and 2023 impacted by mpox
Slide 15: M&A and business development as a source of growth
M&A and business development as a source of growth Building on a strong and Key objectives and outlook inspiring track-record Short-term Medium-term: Executing on integration Ramp-up exploration of M&A and Transformation has created a stronger Bavarian Nordic through and strengthening of business de
Slide 16: Future R&D at Bavarian Nordic
Future R&D at Bavarian Nordic Investments in R&D significantly lowered LCM and commercial support mDKK R&D Bavarian Nordic Research 2.482 2024 DIRECTIONAL Contract R&D (platforms and new indications) 10% 1.203 Development 2.355 DKK 20% ~950 ~850m 628 446 421 1.183 2024E 409 850 70% 341 399 ~50% rela
Slide 17: R&D priorities – focus on infectious disease vaccines
R&D priorities – focus on infectious disease vaccines Selected projects are receiving government funding Preclinical Life-cycle management Explore new disease areas Shelf-life extension Geographical expansion • Smallpox/mpox • Smallpox/mpox Explore new platforms • Typhoid • Chikungunya Investigating
Slide 18: Outlook and financial ambitions
Outlook and financial ambitions Outlook 2024 Financial ambitions and capital allocation Financial ambitions to 2027 – current business (mDKK) Revenue: mDKK 2024 Travel Health, CAGR (23-27) 10-12% Mid-term Public Preparedness base business (excl Revenue 5,000 – 5,300 financial spikes) 1.5 – 2.0 BN am
Slide 19: Continued growth supported by multiple drivers
Continued growth supported Attractive underlying by multiple drivers market growth Successful transformation into a leading pure play Focused on organic vaccine company growth strategy Focused R&D strategy Opportunity to solidify profitability Solid financial position and stronger cash flow generati
Slide 20: Continued Growth
Continued Growth JC May, EVP & Chief Commercial Officer 22
Slide 21: Driving growth with strategic initiatives for Travel Health and Public Preparedness
Driving growth with strategic initiatives for Travel Health and Public Preparedness Expand base business Sustain Growth in Travel Health within Public Preparedness Support key Leverage market Focus on key Relaunch / launch CHIKV VLP global Launch of JYNNEOS stakeholders and growth in the markets and
Slide 22: Record Travel Health sales despite pandemic with further growth runway
Record Travel Health sales despite pandemic with further growth runway Tourism spend share of wallet Leisure travel spend has regained its position as a significant 1 consumer spending category since the pandemic (2020) 10% 8% 6% 4% 4% 2% 2019 2020 2021 2022 2023 2024 2025 Encouraging near-term outl
Slide 23: Continue focus on key markets while expanding global footprint
Continue focus on key markets while expanding global footprint Large growth potential in US for Travel Health North America Existing market of total sales contributed by North 44% America in 2023 (43% of TH sales) Expansion focus (‘24-25) Market leader with 71%MS Challenger with 20%MS KAM-based mode
Slide 24: US Travel Health: Strong foundation has been laid for further growth
US Travel Health: Strong foundation has been laid for further growth Early wins on journey towards Leadership in Travel Health Initiatives to deliver further growth Sales and marketing initiatives Aligned Vivotif and Vaxchora to our strategic account selling model focused on key segments (travel c
Slide 25: CHIKV VLP: An ambition to launch a leading global brand in 2025
CHIKV VLP : An ambition to launch a leading global brand in 2025 Right behind the first entrance to the market with large medical need and sizeable Significant opportunity with estimated opportunity with c. 166m travels p.a. to endemic countries, but limited awareness of global travel market size
Slide 26: A trusted Public Preparedness partner supporting key stakeholders
A trusted Public Preparedness partner supporting key stakeholders Smallpox Mpox Smallpox is considered a top threat to biological defense Endemic in West and Central African countries Population immunity is waning The global virus spread has not stopped Potential threat of other re-emergin
Slide 27: Expand presence in US: Launch of JYNNEOS in managed market
Expand presence in US: Launch of JYNNEOS in managed market Regulatory tailwinds opening access to Sizeable market potential Go-to-market for US managed market ~2 million CDC’s ACIP unanimous Market characteristics population at risk (MSM) of which c. 25% are positive vote Patient flow: already vacci
Slide 28: Innovative Solutions
Innovative Solutions Russell Thirsk, EVP & Chief Operating Officer 60
Slide 29: Production sites and strategic partnerships
Production sites and strategic partnerships Broad expertise, reliable supply, global quality and compliance standards Bavarian Nordic sites CMOs Kvistgaard Munich Kvistgaard, Denmark Bern San Diego Durham Munich, Germany 61 Bern, Switzerland
Slide 30: Our manufacturing sites
Our manufacturing sites Extensive vaccine manufacturing capabilities and platforms Key technologies to produce a variety of vaccines Mammalian cell culture State of the art manufacturing facilities 1 capabilities up to 2000 L CEF cell culture with BSL 3 Strong quality and compliance standards 2 cont
Slide 31: Proven supply capability – meeting demand during mPox outbreak
Proven supply capability – meeting demand during mPox outbreak Public preparedness Ready to deliver our proprietary MVA platform: Jynneos Lifecycle Smallpox Mpox Focus areas 1. Shelf life Capacity Discoveryincreased 4x since 2022 2. Stock piling and Flexibility to respond Pre-licensure R&D to evolvi
Slide 32: Expanding our capabilities
Expanding our capabilities Supply capabilities Vaccine doses produced 1 Million Tech transfer will conclude in 2024 on plan TBE & 14 Capacity ramp underway to supply growth ambition 12,5 Rabies Opportunity for further internalization 12 10 2 8 8 End to end manufacturing in house with capacit
Slide 33: Tech transfer of Encepur & Rabipur/RabAvert nearing completion
Tech transfer of Encepur & Rabipur/RabAvert nearing completion Regulatory submission, drug product, Q4 Full licensure Final pack, drug product (CMO) Tech transfer completion Process performance qualificaton, drug substance Regulatory submission, Q2 2022 2023 2024 2025 Final pack, drug product (CMO)
Slide 34: Strengthening our portfolio with targeted investment in product life cycle management
Strengthening our portfolio with targeted investment in product life cycle management Selected activities in 2024 Freeze-dried Endemic market Shelf-life extension BLA submission presentation 66
Slide 35: Building a reliable and sustainable supply chain
Building a reliable and sustainable supply chain Improving our supply capabilities In the right way Integrated sales Sourcing and Distribution Continuous World class quality Sustainable and operational supplier integration Improvement and compliance Manufacturing planning consolidation Data driven,
Slide 36: Financials
Financials Henrik Juuel, EVP & Chief Financial Officer 70
Slide 37: Outlook and mid-term ambitions
Outlook and mid-term ambitions A profitable business with further improvement opportunities Delivery of profitable growth… …with strong near-term outlook... …and prospects of profitable growth Revenue (mDKK) Outlook 2024 Financial ambitions to 2027 7,062 5,300 mDKK 2024 mDKK 2025-2027 Revenue: 3,151
Slide 38: Margin improvements from tech-transfer of rabies and TBE vaccines
Margin improvements from tech-transfer of rabies and TBE vaccines Approx. 30% COGS saving from TT …driving margin improvements …with some timelag post TT ILLUSTRATIVE COGS SAVINGS -30% 100 • TT complete in 2024 with licensure • Effect visible from 2026 with full 10 expected in 2024 for rabies and im
Slide 39: Cash conversion expected to increase from mid-2025 onwards
Cash conversion expected to increase from mid-2025 onwards Significant investments in the last five years leading to… … significantly improved cash flow from mid-2025 onwards 1 Investments in build-up of inventory 2 Fill and finish facility and new manufacturing driven by… building for Rabies / TBE
Slide 40: Summary and closing remarks
Summary and closing remarks Paul Chaplin, President & Chief Executive Officer 74
Slide 41: Continued growth supported by multiple drivers
Continued growth supported Attractive underlying by multiple drivers market growth Successful transformation into a leading pure play Focused on organic vaccine company growth strategy Focused R&D strategy Opportunity to solidify profitability Solid financial position and stronger cash flow generati