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Bavarian Nordic reported robust financial results for the second quarter of 2025, showcasing a significant revenue increase and improved margins. The company, currently valued at $2.89 billion, has seen its stock price rise to $37.04, marking a strong 37.67% gain over the past six months. According to InvestingPro analysis, the stock’s RSI suggests it’s in overbought territory, with 10 additional real-time insights available to subscribers.
Key Takeaways
- Revenue increased by 33% to nearly 3 billion Danish kroner.
- Gross margin improved to 55%, up from 44% the previous year.
- The company sold a Priority Review Voucher for $810 million.
- New product launches include the Vincunia vaccine for chikungunya.
- Revenue guidance was refined to a range of 6.0-6.6 billion Danish kroner.
Company Performance
Bavarian Nordic demonstrated impressive growth in Q2 2025, with revenue climbing by 33% year-over-year. The company attributes this success to the launch of new vaccines and improved operational efficiencies. The travel health market, particularly for rabies vaccines, continues to expand, providing a favorable environment for the company’s portfolio.
Financial Highlights
- Revenue: Nearly 3 billion Danish kroner, up 33% year-over-year.
- Gross margin: Improved to 55% from 44% in the previous year.
- EBITDA margin: 32% for the first half of 2025.
- Cash position: 1.7 billion Danish kroner.
Outlook & Guidance
Bavarian Nordic has refined its revenue guidance for the year to between 6.0 and 6.6 billion Danish kroner. The company expects travel health revenue to contribute significantly, with guidance set between 2.5 and 2.75 billion. Public preparedness revenue is projected to range from 3.1 to 3.7 billion. The EBITDA margin guidance is maintained at 26-30%.
Executive Commentary
CEO Paul Chaplin highlighted the company’s strong contract base, stating, "We have already secured 3.1 billion kroner in contracts." CFO Henrik Yule added, "We are seeing an increasing awareness probably beyond what we could have dreamt of," reflecting the growing recognition of the company’s products in the market.
Risks and Challenges
- The phasing out of partnerships with Vanneva and Dynavax could impact future collaborations.
- Market saturation and competitive pressures in the vaccine sector may pose challenges.
- Macroeconomic factors and potential regulatory changes could affect market dynamics.
Q&A
During the earnings call, analysts focused on the potential for share buybacks and the company’s margin guidance. Questions also addressed the launch strategy for the chikungunya vaccine and its market potential, indicating a keen interest in Bavarian Nordic’s future growth trajectory.
Full transcript - Bavarian Nordic (BAVA) Q2 2025:
Conference Operator: Good day, and thank you for standing by. Welcome to the Bavarian Nordic Half Year Report Q2 for the Six Months Period Ended 06/30/2025 Conference Call. At this time, all participants are in a listen only mode. After the speakers’ presentation, there will be a question and answer session. Please be advised that today’s conference is being recorded.
I would now like to hand the conference over to your speaker today, Rolf Sorensen, Head of Investor Relations. Please go ahead.
Horst Sansen, Head of Investor Relations, Bavarian Nordic: Thank you, operator, and welcome everyone to this Q2 update from Prerenautic. Yes, my name is Horst Sansen from Investor Relations. And in today’s conference call, have as usual, our CEO, Paul Chaplin and our CFO, Henrik Yule, that will give the presentation and comments. And after that, we have the Q and A session. And at the end, we will also provide a brief walkthrough of the offer and the process we are looking into.
Before we start the presentation, please note that this announcement includes forward looking statements that involve risks and uncertainties and other factors, many of which are outside our control, but could cause actual results to differ materially from the results discussed. Forward looking statements include statements concerning our plans, objectives, goals, future events, performance, and 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. And with this, I will hand it over to you Paul to start the presentation.
Paul Chaplin, CEO, Bavarian Nordic: Thanks Rolf and welcome everyone to Q2 report for 2025. The focus of today’s presentation and talk is really on our first half year results. And while Henrik will give an update at the end on the offer process and the process moving forward, as I said, the focus really is on our financial performance. So if you turn to slide three, we’ve had a very strong performance in the first six months of this year. We’ve seen a 33% improvement in revenues compared to this time last year, resulting in an EBITDA margin of 32%.
And that’s really a result of selling actually 5,000,000 doses of our vaccines across the portfolio. And that’s five lives that we’ve saved in the first half of this year through the sale of our vaccines. We see a balanced growth across the portfolio. On travel health, we’ve seen a 24% improvement compared to last year, and that’s mainly driven by our sales of rabies and TBE, and I’ll come back to that more in the next slide. Vincunia has been approved obviously in The US, Europe and UK, and we are launching according to plan and currently have launched in The US, Germany and France and are on track to meet the guidance for this year.
For public preparedness, we’ve already secured 3,100,000,000.0 kroner of contracts and what that means is that represents at least our base business that we’ve communicated previously is 1,500,000,000.0 to 2,000,000,000. So this is exceeding our base business and we’re on track to deliver that by year end. With that, Henrik will go into more details later, we are refining our guidance in terms of the revenue spread, but maintaining our EBITDA margin of 26% to 30%. Also during the course of this year, we have sold our Priority Review Voucher, resulting in net income of $810,000,000 krona. And when you take that into consideration, that would improve our EBITDA margin by year end to 40%, 42%.
So a really, really strong six months, balanced growth across the portfolio and an exceptional performance by the company. Go to the next slide. So as I mentioned, travel health has grown by 24% compared to this time last year. And as you know, we’ve seen strong growth in this sector quarter on quarter. I want to take a step back and I know I keep reminding everyone, but I do want to take a step back and remind you of the strategy in that five years ago, we decided to commercialise the business by acquiring assets, assets that didn’t have probably the right focus with the previous ownership due to other priorities.
And we believe that with a renewed focus from Bavarian Nordic, we would be
Paul Chaplin, CEO, Bavarian Nordic: able to turn these assets around. And here we are again today on reporting very strong growth, primarily driven by rabies and TBE, demonstrating that this strategy that we created five years ago is really coming to life and has created a platform that will allow us as it has already to acquire other assets.
Paul Chaplin, CEO, Bavarian Nordic: So on rabies, it’s a mixture of two different things, either a gain in market share or a growth in the market, depending on the different territories we look at. In The US, we’ve seen a moderate growth in the rabies market of 5%, but we also saw a 7% improvement in our market share. In Germany, we have a very high market share at 97%, but we actually saw a remarkable growth in the first half of this year of 93%. And this growth is due to a number of different things that I’m sure many of you There are a number of cases being reported in the media of deaths of travelers, which has really raised the profile of the need for a rabies vaccine.
And in fact, the demand for rabies and TBE is going from strength to strength. We have already decided to start increasing the manufacturing output to both those vaccines. This is part of our consolidation plan that we had post tech transfer, but we are accelerating this now due to the high demand that we’re seeing for both vaccines. On TBE, we have seen a growth in the first half compared to last year. That was primarily due to a strong growth in Q1, which has cooled off a little bit in Q2 due to presumably stocking in Q1, but still a 14% growth overall in the first half of the year.
And importantly, we have seen a market share improvement of two percentage points to 30%. I should also mention that the tech transfer of TB from GSK is now complete. It’s been completed on time, on budget. We’re just awaiting the normal regulatory approvals, which we expect to receive by year end. So a real success story in terms of our travel health franchise.
If you go to the next slide, what we’ve added to our travel health portfolio is a vaccine against chikungunya, vincunya. As I said, it’s approved in The EU, US and The UK. And we have launched now in addition to The US, Germany and France with additional launches planned for later this year. We have applied for an approval with Health Canada. We’ve initiated one of the post marketing commitments that we have to initiate a pediatric study.
And as I mentioned already, we’ve sold the Priority Review Voucher. Public recommendations are in place in The US and in Germany and The UK, and that’s for travelers going to areas where there is a current outbreak or a high risk of outbreaks in the future. We really believe so we’re on progress to meet the guidance. The launch plan is going according to plan. We are seeing some uptake and interest in the vaccine, and we believe chikungunya will be a key asset to our travel health portfolio in the coming years.
If you go to the next slide, this slide almost demonstrates the issue that we have in that it’s a very complicated picture of where chikungunya outbreaks have been seen, whether they’re historical outbreaks, current outbreaks, there’s differences between the CDC’s recognition of outbreaks to the WHO. But the one picture that this says is it’s now becoming relatively clear that chikungunya is misunderstood, is not well understood, and is misdiagnosed and underrepresented. It’s probably not by coincidence that since vaccines have become available, the number of cases and outbreaks of chikungunya are on the increase. If you go to the next slide, that’s also true in Europe. And this is a warning, I think, for all health authorities that now in Europe we’re seeing locally transmitted, not for the first case, but probably record number of cases of locally transmitted chikungunya from people, travelers coming back infected and through mosquitoes infecting others.
We’re close to 30 clusters or outbreaks and more than one hundred and twenty cases in France and Italy. And as I said, this should be a warning because with global war, the mosquitoes that can transmit chikungunya are already in Europe and other parts of the world. They’re just waiting for the right conditions for the virus to spread, and we’re already beginning to see that spread and global warming is probably only gonna increase that threat. Go to the next slide on public preparedness. We’ve seen a strong performance in the first half of the year due to sales to numerous governments, but also the supplemental payments from the US government for the freeze dried doses that we’d already manufactured and will manufacture moving forward.
As I said, we’ve already secured 3,100,000,000.0 kroner in contracts. And that will mean even if we stay at that level, we will outperform our base business quite significantly. We do still see strong demand for our public preparedness business. And we have a number of ongoing studies, either in pediatrics, which we’ll be reading out in the coming months, which will allow us hopefully to expand our label to include the entire population. Go to the next slide, a little bit on the pipeline.
So the first program here on our pipeline slide is what we’re calling MVA BN cell line. This is based on years of work where we’ve developed a proprietary cell line that would allow us to change the manufacturing process from eggs to a more robust modern process using cell lines, bioreactors and standard techniques. That process has been developed. We have been in dialogue with the regulators and we’ll be initiating very soon a phase two clinical study, which will show the comparability from a safety immunogenicity point of view of our mPOXX vaccine produced in the cell line to the traditional way of producing it in eggs. And this is really going to increase our capacity and flexibility to manufacture in the future.
We currently have a process and capabilities with partnerships and our own capabilities to address an MPOXX outbreak as we have over the last couple of years. The cell line will allow us to, and I hope this never happens, but will allow us to address a smallpox outbreak globally. We have other programs I mentioned on chikungunya, sorry, I should use the right word, chikungunya vaccine. We have a number of post market commitments. One we’ve already initiated with the pediatric study.
A second is to demonstrate efficacy that there while we’re doing all the preparation work, we have to wait for an outbreak in a certain therapy before we can perform. And
Paul Chaplin, CEO, Bavarian Nordic: we
Paul Chaplin, CEO, Bavarian Nordic: have a number of other programs in early stage for Lyme and time bar virus, which will be moving into the clinic next year. And with that, I will hand over the presentation to Henrik Jorn.
Henrik Yule, CFO, Bavarian Nordic: Yeah, thank you very much, Paul. So, on the next slide, that is slide 10, let’s have a quick look at the commercial performance for the first six months of the year. For the first quarter, for the second quarter, we delivered 16% growth comprised of 35% growth from our public preparedness business and 5% from our travel health business. If we start with the public preparedness business, that corresponded to $917,000,000 Danish kroner in revenue for the quarter and approximately one and a half and a little more, billion Danish kroner in revenue for the first six months, more or less precisely half of the order book that we have already secured for this year. And you can say at the level of the low end of the annual base business that we have communicated to the market within our public preparedness business.
So a good year for our public preparedness business where we are executing on the order book that we have created so far. If we then look at the travel health business, so 5% growth for the quarter. That is driven to a large extent by our rapist vaccines, Rabipur and Avivemet that continued the very strong growth we have seen in the last quarters. This quarter it was 26% and actually taking us to 37% growth for the first six months. Paul already alluded to some of the key drivers behind this strong growth.
Modest growth in The US market growth, but a seven percentage point market share increase if we compare year over year. Encepur, our TBE vaccine, delivered negative growth of 16%, which was to a large extent anticipated after a very strong first quarter where we had indications that there were inventory buildup at wholesaler levels. So if we look at the first six months, that is sort of evened out, and we are actually delivering a 14% growth from in support first six months compared to last year. And key growth drivers here is really strong market growth in Germany, reflecting the endemic expansion, 15% growth. We would if I will focus on year to date 96,000,000 Danish kroner versus 98,000,000 last year, so close to last year’s level, but not fully there.
We are not too happy with the performance of this product here, and we have taken measures to drive stronger performance in the market. And actually, over the last few months, we have achieved to win a couple of percentage point market share. However, unfortunately, in a declining market, the typhoid market in The US has been declining the last few months, and as we are approximately a 20% market shareholder, it’s not within our reach to drive the market. We are fighting for market share, and the message we have taken so far seems to work, so we are definitely hoping to bring this product back to where it should be. Vaxchora, down compared to last year, where we last year had the opportunity to participate in an outbreak and supply our product there, so not a 100% fair comparison this time.
Vimcunia, 13,000,000 after six months. Paul talked to where we have launched, U. S, France, Germany, where we have launched recently, so are still in the launch phase, but we are confirming our expectations to the full year of between 5,100,000,000, and we can see that actually the overall awareness in the market of the criticality of chikungunya viruses is increasing, so we are very confident that we will deliver on our targets and that we will, vimconia, have a great opportunity and a good growth driver for the years to come. Other revenue, which is driven by the contract work that we do for various governments, I think this time mainly, this is the equine encephalitis program sponsored by The US Department Of Defense, so that fluctuates a bit between quarters, and this time it ended at 66,000,000 for the first six months. So altogether, close to 3,000,000,000 Danish kroner in revenue, which is 33% up compared to prior year.
Before I turn to the next slide, just a reminder that we are going to phase out the partnership with Vanneva where we have a Japanese encephalitis and a cholera vaccine, which will come to an end by year and this year, but also our agreement with Dynavax on the hepatitis B vaccine is coming to an end by April next year, all handled in good cooperation with our partners, but just to remind you that this product will leave our portfolio with these deadlines here. On the next slide, full P and L where we talk to the revenue. So I will start here with the gross margin 55%, which is a significant improvement over the 44% order to compare them quarter by quarter, it’s 50% last year, and that is really due to a continued trend from the first quarter. We saw manufacturing getting into more routine manufacturing, improving both the success rates on the batches produced, but also improving the yields. So a good quarter, another good quarter from a manufacturing point of view.
R and D costs very much driven by the committed trials Paul alluded to on chikungunya. Also to a little extent our initiatives on Lyme and EBV, but these are still early stage and not that expensive yet. On a six month basis, we have spent on R and D $4.65, which is approximately corresponding to the 900,000,000 we have indicated for the full year. SG and A costs, 250,000,000, close to that for the second quarter. Our focus here is very much on the launch of vimkunya, our chikungunya vaccine.
And if you look at the first six months, we have spent nearly 500,000,000, so it’s up approximately 50,000,000 compared to same period last year. That number is going to be higher for the second half year as we are ramping up the spend behind the launch of Vimgunya. In The US, we are still awaiting the publication of the MMR ACIP recommendation, but gearing up the investments behind the launch, and we are going to launch in more countries in the second half of the year, which will require investments as well. So, if we look further down the P and L, the quarter delivered an EBITDA margin of 33% and for the first six months 32. So strong EBITDA margin, again driven by a good manufacturing period, but also explained to some extent by back end loaded sales and marketing costs that we will see in the second half of
Paul Chaplin, CEO, Bavarian Nordic: the
Henrik Yule, CFO, Bavarian Nordic: year. So, financial performance for the quarter and for the first six months. Let’s turn to the next slide here, where we look at the cash flow and the balance sheet for the period. What we saw in the first half year was positive cash flow from operating activities, obviously driven by positive net profit, to some extent offset by negative development in working capital as we have seen so far this year an increase in inventory, which we expect to be reduced in the second half of the year. Cash flow from investment activities mainly driven by the milestone payments we have recognized to both the merchant, 50,000,000 US dollars.
These have been paid as well, but also the recognition of the final milestones to GSK of €100,000,000. The milestones to GSK, they have been recognized as achieved, but they have not been paid out yet and will be so in Q3 for $30,000,000 of the 100,000,000 and the remaining part, the $70,000,000 will be paid in the ’6. So if we look at the balance sheet, I will only highlight our cash position there. So close to 1,700,000,000.0 Danish kroner is what we hold in cash and cash equivalents. As I said, we still owe €100,000,000 to GSK, but we also have the net proceeds from the sale of the PRV of $810,000,000 Danish kroner, which has already been arrived at our bank account here in July.
So continued, very solid financial position as well. Next slide, our outlook for ’twenty five. Based on the strong continued performance from the travel health business and more visibility on public preparedness business, we have decided to refine our guidance and basically narrow the revenue interval that we guide. Previous guidance sets revenue between 6 and six point sorry, 5.7 to 6,700,000,000.0 Danish kroner, and we are now refining that to between 6 and 6,600,000,000.0, so increasing the lower end, but also narrowing the window. The EBITDA margin, excluding the voucher, remains unchanged.
It will be between 2630% for the full year, and when we include the proceeds from the voucher of $810,000,000 Danish kroner, this EBITDA margin will change from 40 to 42%. And below on the slide here, you can see how the guidance on revenue stacks up between the different business areas here. So travel health, we are increasing our expectations from 2 and a half billion to 2,000,000,750, basically driven by the strong performance by both our rabies but also our TBE vaccine. Public preparedness, given the higher degree of visibility we now have, we are narrowing the window to between 3.1 and 3,700,000,000.0 Danish kroner, and remember here that the low end of this guidance has already been secured by contracts. So, a refinement of our guidance within the already existing one.
Final slide from my side. As Paul mentioned in the beginning of the meeting, the focus of this call here is really on our results and our progress year to date in the business. But of course, we can’t have this call without just mentioning and giving you an update on the takeover offer. So I’ve just spent two minutes only on this. I assume you’re all aware of the content of the offer.
The consortium, Inocera, based on consisting of Premier and Nordic Capital will make an all cash offer on Beryan Nordic of $2.33 krona per share. This is coming out of a very intense process involving negotiations and due diligence, etcetera, and ended up being a recommended offer. So what can we expect now at the next following weeks here? We are anticipating that the consortium next week when the four weeks review by the Danish Finance Supervisory Board is over that they will announce a comprehensive offer document laying out the detail of the offer. And with that, our board will have an obligation to announce a board statement, a comprehensive board statement, basically reflecting on the offer and the process behind it.
So a lot of the questions that we are being faced with at the moment, I think, will be answered by these documents that we are expecting to be announced at the latest Tuesday next week. So I think that is what we were planning to say about the offer today. So I will give the word back to the operator and ask for Q and As.
Conference Operator: Thank you. As a reminder, to ask a question, please press 11 on your telephone We will now take the first question from the line of Thomas Powers from SEB. Please go ahead.
Paul Chaplin, CEO, Bavarian Nordic: Yes, great. Thank you very much. A couple of questions here from my side. So first of all, what’s the reason why you’ve not communicated any payouts, dividend payouts, share buybacks with excess capital you now have following the PRV sale? I don’t think it’s fully fluctuate with previous communication.
I understand the current M and A process, but is there another underlying reason for this? And then just on the margin guidance for the year. You speak to 26%, 30% adjusted EBITDA. You are now at 32% for H1, which sort of implies an EBITDA for the second half below 25% just to get to the sort of midpoint level here. Immediately, P and L, I think the product mix looks very balanced between travel and Joneus for H1 and H2.
You lift the low end by some $300,000,000 on revenue. And also R and D seems quite nicely split between the two halves. So any color here to make me understand why you’re still at 26,000,000 as the low end would be appreciated. And then my last question, just on the R and D cost outlook. Can you maybe just try to break down the approximate cost related to this pending chikungunya outbreak study?
Just for me, just to get a better understanding on the percentage impact to R and D cost guidance of $900,000,000 for the year, which could be phased into 2026, depending on whether you’re able to start that study in H2? Thank you.
Henrik Yule, CFO, Bavarian Nordic: Okay, thank you, Thomas. This is Senreich. Let me try to answer these questions. First of all, I think what we have communicated previously with regards to potential payout is that we, first of all, we need to pay back to GSK and Emergent BioSolutions, and then we would in the autumn come back to the market and on the back of these payments consider potential share buybacks. So that is in principle still the case, but of course right now we have a process ongoing, which means that we cannot go out and do share buybacks until that has been resolved.
Next question, the margin guidance. You’re absolutely right. And I think what explains how can we go from 32% year to date to ’26 to 30 by year end? The main explanations for that, as I tried to explain when I showed the P and L, is that we have had first six months with very good success in manufacturing. So second quarter, 55% gross margin.
Can we continue that? I think then that is an upside to our EBITDA margin, but there’s no guarantee. We are working with biological manufacturing. And then, as I also explained, our sales and marketing costs are very back end loaded, both in The US where we have already launched, but also in the other markets where we are about to launch. So therefore, we are still sticking to our margin expectations of 26 to 30% for the full year.
On R and D, we do not normally comment on cost of specific studies. We haven’t done that in the past for chikungunya here, so I can’t really say that, but it’s still our expectation that our full year R and D spend would be around DKK900 million.
Paul Chaplin, CEO, Bavarian Nordic: Okay. Great. Thank you very much.
Conference Operator: Thank you. The next question comes from the line of Romy O’Connor from Bonds, Lanscott, Kempen. Please go ahead.
Romy O’Connor, Analyst, Bonds, Lanscott, Kempen: Hi. Thank you for the presentation. Two questions, please. The first on your public preparedness business. So I see that the big part of the revenue guidance for 2025 is based on contributions from here.
But I’d like to ask if you see any risk for further reduction of contracts given that we see a revenue decrease in this half of the year, and what risks you see here? And I also wanna discuss maybe your thoughts on the recent chikungunya outbreaks and whether you can comment on revenue splits that we see in relevant geographies given that the launch now is in Germany and France? Thank you.
Henrik Yule, CFO, Bavarian Nordic: I’m not sure I got the first question. That was regarding public preparedness business where you talked about a decline and loss of contracts, or could you please Yes.
Romy O’Connor, Analyst, Bonds, Lanscott, Kempen: Yes. I was wondering if you see any risk for further reduction of public preparedness contracts in the next half of the year.
Henrik Yule, CFO, Bavarian Nordic: Yeah. Could you elaborate on further, please?
Romy O’Connor, Analyst, Bonds, Lanscott, Kempen: So, yeah, maybe, loss of contracts, US, things like this.
Henrik Yule, CFO, Bavarian Nordic: Yeah. I
Romy O’Connor, Analyst, Bonds, Lanscott, Kempen: think Just any color. Also on the narrowing of the guidance perhaps.
Henrik Yule, CFO, Bavarian Nordic: Yeah. Okay. First of all, we haven’t lost any contracts. When we guided in the beginning of the year, we guided 3 to 4,000,000,000 in a situation where we have an outbreak in Africa. And I think we were anticipating probably more orders for Africa, to be honest.
We have got one million dose order to Africa that we are executing upon, but we haven’t since then received any more orders. Fortunately, we have a good mix of different customers, so we already have an order group of 3.1. So we are into that interval between three to four, and there are still dialogues and further upsides, but we also have to realize that we are eight months into the year. So therefore, I think we believe it’s prudent to say that we have an interval now of 3.1 to 3,700,000,000.0 Danish kroner. And then after your second question was regarding the country split between Chikungunya.
I think that is really too early to say. I think we are just at the beginning of the launch in these countries, and the revenue that we see is mainly supplying into the whole supply chain to start with. So it’s very early days, but I think we can add to that that we are actually seeing an increasing awareness probably beyond what we could have dreamt of when we developed this product here. No one knew about chikungunya. Now we see outbreaks in a number of countries.
We see the media picking up these stories. So there is an increased awareness, which we believe will translate into to more business opportunities in in all these markets.
Romy O’Connor, Analyst, Bonds, Lanscott, Kempen: Thank you.
Conference Operator: Thank you. There are no more questions on the phone. I would like now to turn the conference back to Paul Chaplin for closing remarks.
Paul Chaplin, CEO, Bavarian Nordic: Yeah.
Conference Operator: My apologies. Is there there is another question. Should we take it?
Paul Chaplin, CEO, Bavarian Nordic: Yes. Let’s take the next question.
Conference Operator: Thank you. The next question comes from the line of Thomas Bowers from SEB. Please go ahead.
Paul Chaplin, CEO, Bavarian Nordic: Oh, thank you very much. Just as a quick follow-up here. So when we look at Raapuya right now, it’s, of course, seems like going somewhat more better than previously expected growth rate. So can you maybe just update us when should we sort of expect you to have used the GSK produced inventory? Are we still going to be sort of see a gradual fifteen-twenty basis point improvement to gross margins over a one to two year timeframe or is this maybe going to speed up a bit here?
Henrik Yule, CFO, Bavarian Nordic: That’s a good point, Thomas. And I think the situation right now is that we are manufacturing a Drapier’s product end to end at Perin Nordic, and that has all been approved by the regulators. But we are still sort of flossing the GSK products out of the system, but actually starting to ship our own manufacturing products. So we should be selling our own products towards the end of this year or into next year so that as we have guided the market previously, full year impact from January 1 at least where we will see the improved margins from the rapist business.
Paul Chaplin, CEO, Bavarian Nordic: Okay, got it. And then maybe another follow-up just on Insepu. So, of course, not that overly surprising maybe that you see a decline here in Q2 compared to the very strong Q1. So is there anything I know there’s a lot of noise with inventory starting. So are we sort of going forward, should we expect Q1 to be the stronger quarter going forward?
Or was there something sort of special item like style here in first half that made that Q1 so strong?
Paul Chaplin, CEO, Bavarian Nordic: Maybe I can take that one. So hi Thomas. So, well, I guess the short answer is we don’t know. Typically, as you just indicated, Q2 is the strongest because that’s the peak of the season for the vaccination. Sometimes the season can start earlier, which is why you see these fluctuations moving.
But I think what we believe happened in Q1 this year is that there was some stocking by the wholesalers, simply because there was a price improvement, price increase that we put in place. So most likely we will return to what we’re typically seeing is a ramp up in q one and q two being the peak.
Paul Chaplin, CEO, Bavarian Nordic: Okay. Got it. Great. Thank you very much.
Conference Operator: Thank you. There are no further questions. I would like to hand back over to Paul Chaplin for closing remarks.
Paul Chaplin, CEO, Bavarian Nordic: Thank you. Thanks, everyone, for joining the call and for the questions. Have a great weekend. Thank you. Bye.
Conference Operator: This concludes today’s conference call. Thank you for participating. You may now disconnect.
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