Bavarian Nordic A/S (OTCPK:BVNRY) (OTCPK:BVNKF) announced a new agreement with U.S. Department of Defense Joint Program Executive Office for Chemical, Biological, Radiological, and Nuclear Defense, for the advanced development of MVA-BN WEV, a prophylactic vaccine candidate against Encephalitis in the West, East, and Venezuela virus, which can cause a rare but potentially fatal disease transmitted by mosquitoes in humans.
The new agreement totals $83 million, of which the $55 million guaranteed base agreement covers the costs of the MVA-BN WEV Phase 2 clinical dose study, follow-up non-clinical studies, process development, and clinical production. trial materials.
Furthermore, the deal includes $28 million worth of options to assist with Phase 3 preparation.
The base agreement will be in effect from 2023 to 2026 with the majority of revenue from the deal being recognized within that timeframe.
