Bavarian's 2006 pretax loss widens to $37M

Danish drugmaker Bavarian Nordic's full-year 2006 loss before tax reached 204.8 million Danish kroner ($36.7 million) versus 116.4 million kroner the year before, due to a lower gross profit as a result of lower income and increased costs incurred to start up the production facility at Kvistgard. Furthermore, sales and administrative expenses rose as a result of higher costs of legal advice in connection with pending litigation and patent disputes with UK-based vaccine maker Acambis.

The firm generated revenue of 175.3 million kroner, down from 247.6 million kroner, primarily from current contracts with US health authorities (development contracts RFP-1 and RFP-2). In March 2006, the company made a successful issue of shares, and its equity was increased by the net proceeds of 230.0 million kroner.