The company says the Department of Health and Human Services (HHS) granted permission because it fulfilled a number of significant milestones in the contract. The income will be recognised as revenue in the company’s financial statements for 2007.
In October 2007, Bavarian Nordic received an advance payment of $50 million from HHS as allowed under the contract. In addition to this amount and the current milestone payment, the company expects to receive an additional milestone payment of $25 million in 2007.
In June 2007, HHS awarded Bavarian Nordic a BioShield contract to manufacture and deliver Imvamune, a next-generation smallpox vaccine candidate, to the strategic national stockpile.
Anders Hedegaard, president & CEO of Bavarian Nordic, said, “We are very satisfied that we have fulfilled another significant milestone as agreed with the HHS. With the already received and future payments, we have created a solid financial base for our further development.”