US government adds $32 million to Bavarian Nordic Imvamune contract

Denmark’s Bavarian Nordic (Nasdaq OMX: BAVA) says that the US Department of Health and Human Services has supported the initiation of an expanded Phase III study of its Imvamune smallpox vaccine.

The government is stockpiling 20 million doses of Imvamune under a Project BioShield contract for use in a potential smallpox emergency. The company's procurement contract was modified, increasing the total value of the contract by $32 million to $544 million.

"This additional $32 million from the Department of Health and Human Services will allow Bavarian Nordic to move forward with our Phase III trial of Imvamune smallpox vaccine," said Anders Hedegaard, president and chief executive of Bavarian Nordic, adding: "This study will greatly expand our already promising database and further demonstrate the safety of this important bioterrorism medical countermeasure."