BN narrows loss on cost-cutting measures

Danish drugmaker Bavarian Nordic has reduced its loss in the second quarter of 2008 through major cuts in production and R&D costs.

Despite this the company's revenue fell to just 9.4 million kroner ($1.9 million) versus 22.6 million kroner in the same period of the year before. However, the Copenhagen-headquartered firm cut its production costs to 6.7 million kroner vs 27.3 million kroner. R&D was also cut to 43.1 million kroner from 50.3 million kroner.

As a result, net loss for the quarter narrowed to 45.9 million kroner, or 57 kroner per share, from 62.1 million kroner, or 79 kroner per share. The firm also managed to increase the amount of its cash and cash equivalent assets to 660.4 million kroner vs 323.3 million kroner at the same time last year. Bavarian Nordic also noted that it had realised forward exchange contracts of $200.0 million. The company expects this to result in a 153.0 million kroner improvement in its cash position by the end of the fiscal year.