Emergent to sell travel health business to Bavarian Nordic for $380M

Emergent BioSolutions (EBS) announced that it has entered into an agreement to sell its travel health business to Bavarian Nordic (BVNRY) for a total value of up to $380M, including potential future milestone payments. Under the terms of the definitive agreement, Bavarian Nordic will acquire the rights to Vivotif, indicated for the active immunization to prevent typhoid fever, and Vaxchora, indicated for the active immunization to prevent cholera, as well as the development-stage chikungunya vaccine candidate CHIKV VLP. Bavarian Nordic will also acquire Emergent’s manufacturing site in Bern, Switzerland, and development facilities in San Diego, California. Approximately 280 current Emergent employees are expected to join Bavarian Nordic as part of the transaction. Emergent will further discuss this transaction during the conference call associated with the announcement of its fourth quarter and FY22 financial results scheduled for post-market close on February 27. Upon closing of the transaction, Bavarian Nordic will pay Emergent $270M in upfront cash consideration. Additionally, Bavarian Nordic will pay Emergent up to $30M in sales-based milestones associated with the commercial products and up to $80M in development-based milestones associated with the CHIKV VLP program. The transaction is expected to close in the second quarter of 2023, subject to regulatory clearance and customary closing conditions.