Bavarian Nordic Awarded Contract from the U.S. Government to Advance the Development of new MVA-BN® based vaccines

KVISTGAARD, Denmark, June 18, 2012 - Bavarian Nordic A/S (OMX: BAVA) today announced that it has received a contract from the National Institute of Allergy and Infectious Diseases (NIAID), part of the National Institutes of Health, valued up to USD 17.9 million over five years. This new contract will support the advanced development of candidate vaccine components and technologies that accelerate the immune response for use in post-event settings following the intentional release of pathogens that are considered a threat to public health.

Under the contract, Bavarian Nordic will evaluate several novel technologies to accelerate and/or enhance the immune response to a combined smallpox and Marburg virus vaccine based on MVA-BN®. Although both diseases are considered priority pathogens by the US government, if successful, the new technologies would have benefits for all MVA-BN®-based vaccines for infectious disease and cancer. Under the 2 year base period of the contract, valued at USD 4.4 million, Bavarian Nordic would evaluate several candidate vaccines in preclinical studies. This may be followed by GMP production and a Phase I clinical trial for the lead candidate that will be performed under several contract options that may be exercised until the end of the contract in 2017.

The contract does not affect the company's expectations for the 2012 full year results.

Anders Hedegaard, President & CEO commented: "This is the first major award the company has received for a recombinant MVA-BN® based vaccine and is a recognition of the huge potential of MVA-BN® as a vaccine vector for infectious diseases and cancer. This contract broadens our collaboration with the US Government and we are excited to explore the opportunity to expand the scope of application for our MVA-BN® technology platform, which we have successfully developed through our contracts with the U.S. Government to develop our IMVAMUNE® smallpox vaccine."

Asger Aamund
Chairman of the Board

Contact
Anders Hedegaard, President & CEO. Phone +45 23 20 30 64

About Bavarian Nordic
Bavarian Nordic is a vaccine-focused biotechnology company developing and producing novel vaccines for the treatment and prevention of life-threatening diseases with a large unmet medical need. The company's pipeline targets cancer and infectious diseases, and includes ten development programs. In oncology, the company's lead program is PROSTVAC®, a therapeutic vaccine candidate for advanced prostate cancer that is the subject of an ongoing pivotal Phase 3 trial and is being developed under a collaboration agreement with the National Cancer Institute. In clinical Phase 1 and Phase 2 trials, PROSTVAC® has been tested in nearly 600 patients. In infectious diseases, the company's lead program is IMVAMUNE®, a third-generation smallpox vaccine candidate that is being developed and supplied for emergency use to the U.S. Strategic National Stockpile under a contract with the U.S. Government. For more information, visit www.bavarian-nordic.com

Forward-looking statements
This announcement 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-looking statements include statements concerning our plans, objectives, goals, future events, performance and/or other information that is not historical information. We undertake no obligation to publicly update or revise forward-looking statements to reflect subsequent events or circumstances after the date made, except as required by law.

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