Bavarian Nordic will receive a milestone payment of $25 million from the HHS. The fee is part of a contract to manufacture and deliver 20 million doses of the company's Imvamune® smallpox vaccine.
Bavarian Nordic received an advance payment of $50 million in October. In addition to this and the current milestone payment, the company expects to obtain another milestone fee of $25 million later this year.
The total value of the deal, signed in June of this year, including contractual options, is $1.6 billion, of which the base contract amounts to $500 million.
Besides the delivery of 20 million doses of Imvamune, the base contract will support additional R&D of the product to fulfil the requirements for the potential use of Imvamune during an emergency. Also, this alliance will fund nonclinical and clinical studies necessary for Bavarian Nordic to get FDA approval for Imvamune.