Bavarian Nordic Receives USD 25 Million Milestone Payment from the U.S. Government for Fulfilling Contract Milestones
Bavarian Nordic has received permission from the U.S. authorities to invoice a milestone payment of USD 25 million as allowed under the RFP-3 contract to manufacture and deliver 20 million doses of the company's, IMVAMUNE® smallpox vaccine. The permission has been granted because the company has fulfilled a number of significant milestones in the contract. The income will be recognised as revenue in the financial statements for 2007.
As announced on 8 October 2007, Bavarian Nordic has already received an advance payment of USD 50 million. In addition to this and the current milestone payment, the company expects to receive an additional milestone payment of USD 25 million in 2007. The advance payment does not affect the previously announced guidance for the company's 2007 result.
Anders Hedegaard, President & CEO of Bavarian Nordic, said:" We are very satisfied that we have fulfilled another significant milestone as agreed with the U.S. Department of Health and Human Services. With the already received and future payments, we have created a solid financial base for our further development. "
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