Q2 2026 Bavarian Nordic AS Earnings Call

August 21, 2026

Speaker #2: Good day, and thank you for standing by. Welcome to the Bavarian Nordic Q2 and half-year report for the six-month period ended 30 June 2026 conference call.

Speaker #2: At this time, all participants are in a listen-only mode. After the speaker's presentation, there will be a question-and-answer session. To ask a question during the session, you will need to press *11 on your telephone.

Speaker #2: You will then hear an automated message advising your hand is raised. To withdraw your question, please press *11 again. Please be advised that today's conference is being recorded.

Speaker #2: I would now like to hand the conference over to your speaker today, CEO Paul Chaplin. Please go ahead.

Speaker #3: Thank you, and welcome everyone to our half-year conference call. Today, we've announced our Q2 results, and before I go into them and then hand over the call to Henrik Juuel, the CFO, obviously we've announced tremendous results today, driven by very strong growth across the whole commercial portfolio.

Paul Chaplin: Thank you, and welcome everyone to our H1 conference call. Today, we have announced our Q2 results, and before I go into them and then hand over the call to Henrik Juuel, the CFO. We have announced tremendous results today, driven by very strong growth across the whole commercial portfolio. Before I get into those numbers, I just want to say these sort of numbers do not happen by chance. It is an endorsement of our strategy, but more importantly, it is an endorsement of our employees and their hard work and dedication, but also our partners around the world and our healthcare professionals who work together with Bavarian Nordic to really ensure that we improve the access to our life-saving vaccines. For the H1, we have reported just over DKK 3 billion in revenue and an EBITDA margin of 35%.

Speaker #3: And before I get into those numbers, I just want to say these sorts of numbers don't happen by chance. It's an endorsement of our strategy, but more importantly, it's an endorsement of our employees and their hard work and dedication.

Speaker #3: But also our partners around the world, and our healthcare professionals, who work together with Bavarian Nordic to really ensure that we improve access to our life-saving vaccines.

Speaker #3: So, for the first half-year, we've reported just over 3 billion kroner in revenue and an EBITDA margin of 35%. As I said, this really equates to a tremendous result.

Paul Chaplin: As I said, this really equates to a tremendous result. On travel health, we have seen a tremendous growth of 26% for the first six months compared to this time last year and actually 45% for the Q2. That is driven for the whole portfolio, but primarily driven by Rabipur and Encepur, the first assets we acquired back in 2020, but also by a very successful launch for our chikungunya vaccine, VIMKUNYA. We have received additional approvals in both Switzerland and Canada for VIMKUNYA, and we have continued to launch in different countries and now have 15 countries where we have launched the product, and that launch plan will continue into the H2 of this year. I would say it is going faster than the original plan that we set out last year.

Speaker #3: On travel health, we've seen tremendous growth of 26% for the first six months compared to this time last year, and actually 45% for the second quarter.

Speaker #3: And that's driven for the whole portfolio, but primarily driven by rabies and TB, the first assets we acquired back in 2020, but also by a very successful launch for our chikungunya vaccine, VLA1553.

Speaker #3: We have received additional approvals in both Switzerland and Canada for Vincogna. We've continued to launch in different countries, and now have 15 countries where we've launched the product. That launch plan will continue into the second half of this year.

Speaker #3: And I would say it is going faster than the original plan that we set out last year. Importantly, these numbers are also contributed by our public preparedness business, which is exceeding our base business of $1.5 to $2 billion.

Paul Chaplin: Importantly, these numbers are also contributed by our public preparedness business, which is exceeding our base business of DKK 1.5 billion or DKK 2 billion. We already have contracts worth DKK 2.3 billion in the books for this year. This strong performance that we have seen in the first six months is leading to an upgrade in our guidance, which Henrik will talk more about in the coming slides. Essentially, we are confirming the approximate upper range of DKK 5.7 billion in revenue and an EBITDA margin of around 30%. We are also coming off the back end of a very strong cash position, and because of that, we have decided to launch another share buyback program up to DKK 750 million.

Speaker #3: And we already have contracts worth $2.3 billion in the books for this year. This strong performance that we've seen in the first six months is leading to an upgrade in our guidance, which Henrik will talk more about in the coming slides.

Speaker #3: But essentially, we're confirming the approximate upper range of DKK 5.7 billion in revenue and an EBITDA margin of around 30%. We are also coming off the back end of a very strong cash position.

Speaker #3: And because of that, we have decided to launch another share buyback program of up to 750 million kroner. So, as I said, very, very strong financial numbers driven by very strong commercial performance across the board, and that is translating into improved access for people who want to receive our life-saving vaccines.

Paul Chaplin: So, as I said, very strong financial numbers driven by very strong commercial performance across the board, and that is translating into improved access for people who want to receive our life-saving vaccines. Let's go to the next slide 6. As I said on Travel Health, we're really seeing a strong performance, 26% growth compared to this time last year for the H1. If we look at Rabipur, we are really seeing a strong growth, 40% growth for Rabipur. If we look at both US and Germany, our key two markets, these are both above 20% and we have very strong market share and maintaining that strong market share in both those key markets. But also there is outstanding growth in other markets, in Europe with a 91% improvement compared to last year.

Speaker #3: If you go to the next slide, slide 6. So, as I said, on Travel Health, we're really seeing a strong performance—26% growth compared to this time last year for the first half of the year.

Speaker #3: And if we look at rabies, we are really seeing strong growth—40% growth for rabies. If we look at both the US and Germany, our key two markets, these are both above 20%, and we have a very strong market share and are maintaining that strong market share in both those key markets.

Speaker #3: But also, there is outstanding growth in other markets in Europe. We've had a 91% improvement compared to last year. And this, I have to say, comes down to strong brand performance and an endorsement of our strategy of turning these assets around.

Paul Chaplin: And this, I have to say, comes down to strong brand performance and an endorsement of our strategy of turning these assets around. We are also obviously seeing continued outbreaks of rabies in the US, but I would say we're now moving into the fact that travelers are really much more aware of the devastating effect of rabies, and rabies is becoming one of the standard choices of travel health vaccines. On Encepur, we've also seen strong growth compared to this time last year. And we're seeing a slight improvement in our market share in the key market in Germany. And importantly, and we've talked about this in previous quarters, we have extended the shelf life now to 24 months based on the latest data, and we believe that will have improvements moving forward in terms of our sales.

Speaker #3: We are also, obviously, seeing continued outbreaks of rabies in the US. But I would say we're now moving into the fact that travelers are really much more aware of the devastating effect of rabies, and rabies is becoming one of the standard choices of travel health vaccines.

Speaker #3: On TB, we've also seen strong growth compared to this time last year, and we're seeing a slight improvement in our market share in the key market in Germany.

Speaker #3: And importantly, as we've discussed in previous quarters, we have now extended the shelf life to 24 months based on the latest data, and we believe that will lead to improvements in our sales moving forward.

Speaker #3: While I'm focusing on this slide to really only talk about rabies and TB, we shouldn't forget that we are also seeing performance with Vivotif and Vaxchora, our other assets within the travel health portfolio.

Paul Chaplin: While I'm focusing on this slide to really only talk about Rabipur and Encepur, we shouldn't forget that we are also seeing performance with Vivotif and Vaxchora, our other assets within the Travel Health portfolio. Go to the next slide 7. On VIMKUNYA, we are still very much in the launch phase. And we obviously, as I already mentioned in the first slide, we've seen additional approvals in both Switzerland and Canada. Switzerland, we've already launched, bringing the total number of countries where we're currently launched to 15. And Canada, hopefully, will be launching later this year. We've also submitted the dossier with our partner, Eurofarma in Brazil, which is the first stage, obviously, of bringing this product to endemic markets. We are in the guidance, readjusting the VIMKUNYA sale guidance down to DKK 200 million for this year.

Speaker #3: If you go to the next slide, slide 7. On Vincogna, we are still very much in the launch phase, and we obviously—as I already mentioned in the first slide—have seen additional approvals in both Switzerland and Canada.

Speaker #3: Switzerland, we've already launched, bringing the total number of countries where we're currently launched to 15. And Canada, hopefully, will be launching later this year.

Speaker #3: We've also submitted the dossier with our partner Europharma in Brazil, which is the first stage, obviously, of bringing this product to endemic markets. We are in the guidance, readjusting the Vincogna sale guidance down to 200 million kroner for this year.

Speaker #3: And while we are seeing encouraging demand in Europe, particularly in Germany, but also in some other markets that we've launched, such as the UK, in the US we are seeing headwinds due to the lack of the publication of the ACIP recommendation.

Paul Chaplin: And while we are seeing encouraging demand in Europe, particularly in Germany with some other markets that we've launched, such as the UK, in the US, we are seeing headwinds due to the lack of the publication of the ACIP recommendation. This we've talked about before, and unfortunately, while we were hoping that would be already published, it is delayed and this is causing us, as I said, slight headwinds in terms of convincing certain distributors and wholesalers to buy the product. But as I said, encouraging sales in Europe and other territories, and we really believe VIMKUNYA will be a future growth story as part of our Travel Health portfolio. On Public Preparedness on the next slide.

Speaker #3: As we've discussed before, unfortunately, while we were hoping that would already be published, it is delayed, and this is causing us, as I said, slight headwinds in terms of convincing certain distributors and wholesalers to buy the product.

Speaker #3: But as I said, encouraging sales in Europe and other territories, and we really believe Vincogna will be a future growth story as part of our travel health portfolio.

Speaker #3: On public preparedness, on the next slide. A number of years ago, we guided the market to say that our base business for public preparedness would be somewhere between 1.5 to 2 billion kroner each and every year.

Paul Chaplin: A number of years ago, we guided the market to say that our base business for public preparedness would be somewhere between DKK 1.5 billion to DKK 2 billion each and every year. That was based on the five to six recurring customers or governments that we have around the world. I must say, since we have guided on that range, we have exceeded the DKK 2 billion range every year. That is primarily because we have come through a number of different mpox outbreaks, which have obviously impacted sales. This year, the original guidance was DKK 1.8 billion to DKK 2 billion, again based on the customer base that we have built up. We have recently announced a number of new contracts. One was with the US government, another was with an undisclosed EU government. That has meant that this year we have already secured DKK 2.3 billion in contracts.

Speaker #3: And that was based on the five to six recurring customers or governments that we have around the world. And I must say, since we have guided on that range, we have exceeded the $2 billion range every year.

Speaker #3: Now, that is primarily because we've gone through a number of different Mpox outbreaks, which have obviously impacted sales. And this year, the original guidance was 1.8 to 2 billion kroner, again based on the customer base that we've built up.

Speaker #3: And we have recently announced a number of new contracts; one was with the US government, another was with an undisclosed EU government. And that's meant that this year we've already secured $2.3 billion in contracts.

Speaker #3: And today, we are confirming the upper end of the revised range of $2.5 billion. And this really is an endorsement that we are seeing repeat business from the customer base.

Paul Chaplin: Today we are confirming the upper end of the range, the revised range of DKK 2.5 billion. This really is an endorsement that we are seeing repeat business from the customer base. I think really we should be anticipating that our base business is more around the DKK 2 billion moving forward. We have also seen some regulatory improvements. The EU has approved the younger indication, so MVA is now approved for 2 years plus. This is important because children are the main target in Africa, where the disease is endemic, and for future UNICEF orders. Of course, it now means that MVA in Europe, and hopefully we will expand that to include US and other territories, it will be approved for 2 plus. There are ongoing studies looking at breastfeeding women and even younger children that could potentially support an indication for the whole population.

Speaker #3: And I think, really, we should be anticipating that our base business is more around the 2 billion kroner moving forward. We've also seen some regulatory improvements.

Speaker #3: The EU has approved the younger indication, so MVA is now approved for children 2 years old and above. This is important because children are the main target in Africa, where the disease is endemic.

Speaker #3: And for future UNICEF orders. And of course, it now means that MVA is in Europe, and hopefully we will expand that to include the US and other territories.

Speaker #3: It will be approved for 2-plus, and there are ongoing studies looking at breastfeeding women and even younger children that could potentially support an indication for the whole population.

Speaker #3: This is not only important for access, ensuring that everyone who needs this vaccine can get access to the vaccine, but of course, it also improves the indication for MVA and obviously makes it harder, should there be any competition arising in the near term.

Paul Chaplin: This is not only important for access, ensuring that everyone who needs this vaccine can get access to the vaccine. Of course, it also improves the indication for MVA and obviously makes it harder should there be any competition arising in the near term. If you go to the next slide, just a few words on the pipeline. We have a lot of life cycle management activities. These are activities that we invest in to support our commercial portfolio. A large part of the R&D budget for 2026 is to support our VIMKUNYA vaccine. Not only the approvals, but the regulatory requirements. So we have a number of ongoing studies, in children, also an efficacy study, which has taken a significant part of the R&D budget. We also have an ongoing study where we are trying to improve the manufacturing process for our MVA smallpox mpox vaccine.

Speaker #3: If you go to the next slide, just a few words on the pipeline. We have a lot of lifecycle management activities. These are activities that we invest in to support our commercial portfolio.

Speaker #3: A large part of the R&D budget for 2026 is to support our Vincogna vaccine—not only the approvals, but also the regulatory requirements. So we have a number of ongoing studies in children, and also an efficacy study, which is taking a significant part of the R&D budget.

Speaker #3: We also have an ongoing study where we're trying to improve the manufacturing process for our MVA smallpox and mpox vaccine. This will actually read out preliminary results later this year.

Paul Chaplin: This will actually read out preliminary results later this year. We have a study funded by DoD for equine encephalitis, which is currently in phase II. We have submitted a proposal for additional funding to move into phase III, and those discussions are ongoing with DoD. We have two other assets that are in preclinical. One is for Lyme and one is for EBV. Today we are actually announcing that EBV will actually be initiating the phase I study later this year. We had originally said that that study would start in 2027, but we are bringing that forward. Lyme, we have further worked on our Lyme candidate and have an improved candidate vaccine that will now go into clinical development in 2028.

Speaker #3: We have a study funded by the DOD for equine encephalitis, which is currently in Phase 2. We have also submitted a proposal for additional funding to move into Phase 3.

Speaker #3: And those discussions are ongoing with DoD. We have two other assets that are in preclinical: one is for Lyme, and one is for EBV.

Speaker #3: And today we're actually announcing that EBV will be initiating the phase 1 study later this year. We had originally said that the study would start in 2027, but we're bringing that forward.

Speaker #3: And on Lyme, we have done further work on our Lyme candidate and have an improved candidate vaccine that will now go into clinical development in 2028.

Speaker #3: And I actually want to spend just a couple of slides talking about Lyme, because we are actually incredibly excited about the new candidate that we've developed. So if you go to the next slide, slide 10.

Paul Chaplin: I actually want to spend just a couple of slides talking about Lyme, because we are actually incredibly excited about the new candidate that we have developed. If you go to the next slide 10. A little bit about Lyme. The number of cases of Lyme disease are increasing both in the US and in Europe. It is a tick-borne disease caused by a bacteria. In the middle part of this slide, you can see the endemic regions, in the US and Europe. This is caused by a bacteria that has six different strains. We have been working on a Lyme vaccine for a number of years now, and we have refined our candidate, that will now protect based on preclinical data against the six main strains that we see in Europe and the US.

Speaker #3: A little bit about Lyme. The number of cases of Lyme disease is increasing, both in the US and in Europe. It is a tick-borne disease caused by a bacteria.

Speaker #3: And in the middle part of this slide, you can see the endemic regions in the US and Europe. And this is caused by a bacteria that has six different strains.

Speaker #3: And we've been working on a Lyme vaccine for a number of years now, and we have refined our candidate that will now protect, based on preclinical data, against the six main strains that we see in Europe and the US.

Speaker #3: And it's based on a new vaccine platform that we've developed, which we're referring to as the self-assembling antigen particle—or SAP—platform. It's a protein-based, non-viral particulate vaccine that is designed specifically to stimulate very high immune responses in people, and high immune responses translate into better protection.

Paul Chaplin: It is based on a new vaccine platform that was developed, which we are referring to as the self-assembling antigen particle or SAP platform. It is a protein-based, non-viral, particular vaccine that is designed specifically to stimulate very high immune responses in people, and high immune responses translates into better protection. If we go to the next slide 11. If you look at the left-hand side, what we are looking at here is a positive control Lyme vaccine. This is based on a technology that is currently being developed in the clinic by others. Here you can see what we are looking at is the ability of the vaccine to stimulate immune responses that kill the bacteria that cause Lyme. With the positive control, there is no protection or activity after two vaccinations.

Speaker #3: So if we go to the next slide, slide 11. If you look at the left-hand side, what we're looking at here is a positive control, Lyme vaccine.

Speaker #3: This is based on a technology that's currently being developed in the clinic by others. And here, you can see what we're looking at is the ability of the vaccine to stimulate immune responses that kill the bacteria that cause Lyme.

Speaker #3: And with the positive control, there's no protection or activity after two vaccinations. And you can see you actually need three vaccinations to see bacterial killing.

Paul Chaplin: You can see you actually need three vaccinations to see bacterial killing, and this is at a level that is protective. The second part of that graph is our vaccine candidate, and you can see that with one vaccination, you get bacterial killing at a level that is protective. There is equivalent to three vaccinations of the positive control. If you give two vaccinations, you are now in a completely different league in terms of the immune responses and the bacterial killing. On the right-hand side, this is a mouse model where you challenge with infected ticks to the three different strains of Lyme. With the negative control, there is no protection. You can detect bacteria. With two shots of our vaccine, you get complete protection against all the three different strains that are evaluated in this study.

Speaker #3: And this is at a level that is protective. The second part of that graph is our vaccine candidate, and you can see that with one vaccination, you get bacterial killing at a level that is protective.

Speaker #3: There's equivalent to three vaccinations of the positive control. And if you give two vaccinations, you're now in a completely different league in terms of the immune responses and the bacterial killing.

Speaker #3: And then on the right-hand side, this is a mouse model where you challenge with infected ticks to the three different strains of Lyme. And with the negative control, there's no protection.

Speaker #3: You can detect bacteria. And with two shots of our vaccine, you get complete protection against all three different strains that are evaluated in this study.

Speaker #3: So we have a vaccine candidate that, in preclinical models, is better than the current vaccines that are being developed, whether they're based on RNA or based on other technologies.

Paul Chaplin: We have a vaccine candidate that in preclinical models is better than the current vaccines that are being developed, whether they are based on RNA or based on other technologies. That I am showing you in this data, this data is actually highly durable, long-lasting in the mouse model, which is something that is also a weakness of the current vaccines that are being developed. We are extremely excited about our Lyme candidate. In animal models, it certainly looks better than what is being currently developed by others. We will spend most of next year manufacturing the material and having discussions with regulators, and then move into the clinic in 2028. With that, I will hand over the presentation to Henrik Juuel.

Speaker #3: And now that I'm showing you this data, this data is actually highly durable, long-lasting in the mouse model, which is also a weakness of the current vaccines that are being developed.

Speaker #3: So we're extremely excited about our Lyme candidate. In animal models, it certainly looks better than what's being currently developed by others. We will spend most of next year manufacturing the material and having discussions with regulators, and then moving to the clinic in '28.

Speaker #3: And with that, I will hand over the presentation to Henrik Juuel.

Speaker #2: Thank you very much. So, let's turn to slide number 13, where we start looking into some of the numbers. The first slide here is about the commercial performance for the second quarter and the first half year of this year.

Henrik Juuel: Thank you very much, Paul. Let's turn to slide number 13, where we start looking into some of the numbers. First slide here is about the commercial performance for Q2 and the H1 of this year. Q2, we delivered very strong revenue performance, DKK 2,034 million, and more or less equally split between our public preparedness business and our travel health business. That took us to nearly DKK 3.1 billion for the first 6 months. Very strong performance during Q2. If we just talk about the individual business legs here, public preparedness first, DKK 975 million for the quarter. Very, very strong performance supplied to different customers, but with the US government and HERA, our EU partner, being the biggest receivers of products during this quarter here.

Speaker #2: So, in the second quarter, we delivered very strong revenue performance: 2 billion and 34 million Danish kroner, more or less equally split between our public preparedness business and our travel health business.

Speaker #2: And that took us to nearly DKK 3.1 billion for the first six months—so a very strong performance during the second quarter. If we just talk about the individual business legs here, public preparedness first: DKK 975 million for the quarter.

Speaker #2: Very, very strong performance. Supply to different customers, but with the US government and HERA, our EU partner, being the biggest receivers of products during this quarter here.

Speaker #2: That takes us, on a half-year basis, to nearly DKK 1.3 billion. And we are well on track to deliver on the DKK 2.3 billion that we have secured for the full year.

Henrik Juuel: That takes us on a half-year basis to nearly DKK 1.3 billion. We are well on track to deliver on the DKK 2.3 billion that we have secured for the full year, and confident that we can deliver on our upgraded guidance of DKK 2.5 billion for the public preparedness business. If we then turn to our travel health business, very, very strong performance. We deliver 45% growth in Q2 and 26% for the H1. With these products, one has to be a little careful looking at individual quarters. I prefer talking to the half year in this case here, as products are some of them, and to a varying degree, they are seasonal. But the seasonal pattern does not always remain the same year over year.

Speaker #2: And confident that we can deliver on our upgraded guidance of DKK 2.5 billion for the public preparedness business. If we then turn to our travel health business, very, very strong performance.

Speaker #2: We delivered 45% growth in the second quarter, and 26% for the first half-year. With these products, one has to be a little careful looking at individual quarters.

Speaker #2: So I prefer talking to the half-year in this case here, as products are—some of them, and to varying degrees—seasonal. But the seasonal pattern does not always remain the same year over year.

Speaker #2: If we start with our rabies business, there was very, very strong growth of 40% after six months. And I think this was mainly driven by significantly increased demand, both in Europe and in the US.

Henrik Juuel: If we start with our rabies business, very, very strong growth of 40% after 6 months, and having mainly driven by significant increased demand both in Europe and in US. Driven by these outbreaks, we have seen impacts from rabies both in Europe but also on travelers coming back to Europe. Very strong demand. US and Germany basically grew by 20-plus percent. At the same time, we managed to maintain or gain market share in this business here. Very strong performance. Our Encepur business, we delivered 17% growth, which we are very pleased with. We came out of Q1 actually with negative growth, but that was based on a very strong Q1 last year. We are very pleased with the 17% growth in our TBE business.

Speaker #2: Driven by these outbreaks, we have seen impacts from rabies, both in Europe but also on travelers coming back to Europe. So, very strong demand.

Speaker #2: The US and Germany basically grew by 20-plus percent. At the same time, we managed to maintain or gain market share in this business here.

Speaker #2: So, very strong performance. In our 'Insecure' business, we delivered 17% growth, which we are very pleased with. We came out of the first quarter, actually, with negative growth.

Speaker #2: But that was based on a very strong first quarter last year, so we are very pleased with the 17% growth in our TPE business.

Speaker #2: As some of you will recall from our last earnings call, we have been struggling a little with shorter-than-wished-for shelf life on our TPE product.

Henrik Juuel: As some of you will recall from our last earnings call, we have been struggling a little with a shorter-than-risk for shelf life on our TBE product. That has meant that we had to work, I think, very intensively with the wholesalers and distributors in the markets, and we are very happy that we can sit here today and our commercial team, they have done a fantastic job in maintaining our market share during this position and growing the business, the revenue by 17%. As we have said previously, the current 24 months shelf life is an improvement over the initial 18 months we got at the end of last year, and we are very confident that we will work our way back to the 36 months shelf life most likely during next year.

Speaker #2: And that has meant that we had to work, I think, very intensively with the wholesalers and distributors in the markets. And we are very happy that we can sit here today, and our commercial team, they have done a fantastic job in maintaining our market share during this position and growing by 17%.

Speaker #2: And as we said previously, the current 24-month shelf life is an improvement over the initial 18 months we got at the end of last year.

Speaker #2: And we are very confident that we will work our way back to the 36-month shelf life, most likely during next year. So, very strong performance by the two products we acquired from GSK back in 2000.

Henrik Juuel: Very strong performance by the two products we acquired from GSK back in 2000. VIMKUNYA, we delivered significant growth, obviously on an easy background as we only launched April last year, DKK 78 million for the first 6 months. As Paul already alluded to, we have taken down our assumption for VIMKUNYA, and we are now expecting approximately DKK 200 million in revenue, and not the DKK 250 million we guided for previously. This is all explained by the short-term headwinds that we see in the US due to the lack of the MMWR publication. Other markets are doing as expected or even better. VIVOTIF also showing strong growth. That is our typhoid vaccine, 19% growth.

Speaker #2: Vim Cunha, we delivered significant growth—obviously on an easy background, as we only launched in April last year. €78 million for the first 6 months.

Speaker #2: And as Paul already alluded to, we have taken down our assumption for VIMCUNHA, and we are now expecting approximately $200 million in revenue, not the $250 million we guided for previously.

Speaker #2: And this is all explained by the short-term headwinds that we see in the U.S. due to the lack of DM and WR publications. Other markets are doing as expected, or even better.

Speaker #2: Vivotif is also showing strong growth—that's our typhoid vaccine—with 19% growth. And this is an area where we have started to see some of the measures we took, by employing an external sales force to help us drive demand in new channels.

Henrik Juuel: This is an area where we have started to see some of the measures we took, by employing an external sales force to help us drive demand in new channels has worked out, and we are starting to see this product actually growing in the markets. All in all, DKK 3 billion and DKK 92 million revenue delivered for the H1. Very strong and satisfactory results on the top line. Let us turn to the next page, which is our profit and loss. Here, looking at the quarter again, DKK 2 billion in revenue. A very strong gross margin of 61% driven by a favorable product mix, half public preparedness, half travel health, a lot in the high-price markets. That is impacting our gross margin positively.

Speaker #2: Has worked out. And we are starting to see this product actually growing in the markets. So all in all, 3 billion. And 92 million revenue delivered for the first half year.

Speaker #2: So, very strong and satisfactory results on the top line. Let's turn to the next page, which is our profit and loss. Here, looking at the quarter again, €2 billion in revenue.

Speaker #2: A very strong gross margin of 61%, driven by a favorable product mix—half public preparedness, half travel health. A lot in the high-priced markets.

Speaker #2: So, that is impacting our gross margin positively. But, on top of that, we have also seen continued very strong performance by our operations team.

Henrik Juuel: On top of that, we have also seen continued very strong performance by our operations team, meaning high success rates in our production, fewer batches being scrapped, et cetera. Very strong performance leading to a high gross margin. Total operating costs. That is DKK 482 million. It is lower than what we saw last year for the quarter, but for the H1, it is spot on at the same level we saw in previous years. Lower R&D costs simply due to the timing, primarily of our VIMKUNYA trials. Then we see the SG&A costs being higher, mainly explained by some of the expansions we have done within the commercial area, taking business back from our previous partner and building up our presence in new markets. On a total level, total operating cost unchanged. For the quarter, turning down to the bottom line, EBITDA margin of 45%.

Speaker #2: Meaning high success rates in our production—fewer batches being scrapped, et cetera. So, very strong performance leading to a high gross margin. Total operating cost.

Speaker #2: So, that's 482 million. It's lower than what we saw last year for the quarter, but for the half year, it's spot on at the same level we saw in previous years.

Speaker #2: Lower R&D costs simply due to the timing, primarily of our chicken cuna trials. And then we see the SG&A cost being higher, mainly explained by some of the expansions we have done within the commercial area, taking business back from our previous partner and building up our presence in new markets.

Speaker #2: But on a total level, total operating cost is unchanged. So for the quarter, turning down to the bottom line, EBITDA margin of 45%. Very, very strong profit margin.

Henrik Juuel: Very, very strong profit margin, far beyond, we can say, our full-year expectations, but of course also driven first of all by the high level of revenue, which is diluting the OpEx impact and the strong gross margins as well. 45%, and on a half-year basis, taking us also to a very strong EBITDA margin of 35%. Let us turn to the next slide, where I just want to talk a little about our cash flow and our cash position. If we first look at the cash flow from operating activities H1, negative by approximately DKK 400 million. Here you have to remember that that is impacted by the very final milestone we paid to GSK early in the year, EUR 70 million.

Speaker #2: Far beyond, we can say, our full-year expectations. But of course, also driven, first of all, by the high level of revenue, which is diluting the OPEX impact.

Speaker #2: And the strong gross margins as well—so, 45%. And on a half-year basis, taking us also to a very strong EBITDA margin of 35%.

Speaker #2: So let's turn to the next slide. We just want to talk a little about our cash flow and our cash position. So, if we first look at the cash flow from operating activities, first half-year, negative by approximately 400 million.

Speaker #2: But here you have to remember that that is impacted by the very final milestone we paid to GSK early in the year—€70 million.

Henrik Juuel: And you will see that in Q2, we have none of that, and we are generating in that quarter alone +DKK 351 million cash flow from operating activities. I just want to comment also on the cash flow from financing activities, where you will see for the H1 -DKK 464 million. Please remember that that includes our share buyback, where the majority of the previous DKK 500 million program was executed during H1. For the quarter, net positive cash flow for the period, negative for H1. But I have mentioned the two big reasons for that. The underlying business is generating good, nice cash flow.

Speaker #2: And you will see that in the second quarter, we had none of that. And we are generating, in that quarter alone, positive cash flow from operating activities of €351 million.

Speaker #2: I just want to comment also on the cash flow from financing activities, where you will see for the half year it was negative by DKK 464 million.

Speaker #2: And please remember that includes our share buyback, where the majority of the previous €500 million program was executed during the first half of the year.

Speaker #2: So, for the quarter, net positive cash flow for the period; negative for the first half-year. But I have mentioned the two big reasons for that.

Speaker #2: The underlying business is generating good, nice cash flow. And that cash flow leads us to a very strong cash position, currently of $2.3 billion.

Henrik Juuel: That cash flow leads us to a very strong cash position currently of DKK 2.3 billion, allowing us to launch another share buyback program of up to DKK 750 million while still maintaining our financial flexibility to pursue our M&A strategy. The next slide is elaborating a little further on this, and in principle, nothing new on this one. I just wanted to remind everyone about our capital allocation policy. First priority is, of course, that we invest in our current business and our pipeline in all the organic growth that we can secure. Secondly, we work to generate an expanded financial flexibility, and that second element used to include prioritization of payments back to GSK and Emergent BioSolutions. They are all behind us now. We owe nothing to the sellers of these products.

Speaker #2: Allowing us to launch another share buyback program of up to $750 million, while still maintaining our financial flexibility to pursue our M&A strategy. The next slide elaborates a little further on this.

Speaker #2: And in principle, nothing new on this one. Just wanted to remind everyone about our capital allocation policy. First priority is, of course, that we invest in our current business and our pipeline.

Speaker #2: In all the organic growth that we can secure. Secondly, we work to generate expanded financial flexibility. And that second element used to include prioritization of payments back to GSK and emerging buyer solutions.

Speaker #2: They are all behind us now. We owe nothing to the sellers of these products. And then, thirdly, the cash we might have at that point in time, we are prioritizing for synergistic M&A opportunities.

Henrik Juuel: Then thirdly, the cash we might have at that point in time, we are prioritizing for synergistic M&A opportunities and returning money to shareholders. We will, at any given time, try to balance our cash position with the expected cash flow generation in the future, taking the maturity of our business development pipeline into consideration. Based on all of that, we will evaluate how much cash we need. At the moment, that balance has led us to initiating the DKK 750 million share buyback program. Our target with all of these initiatives is really to optimize our capital structure, including a suitable leverage of the company in the future. Let's turn to my final slide here, which is just to talk about the outlook. Based on our performance year to date, we are upgrading our financial expectations to the year.

Speaker #2: And returning money to shareholders. So, at any given time, we will try to balance our cash position with the expected cash flow generation in the future.

Speaker #2: Taking the maturity of our business into consideration, and based on all of that, we will evaluate how much cash we need. At the moment, that balance has led us to initiating the $750 million share buyback program.

Speaker #2: And our target with all of these initiatives is really to optimize our capital structure, including achieving a suitable leverage of the company in the future.

Speaker #2: Let's turn to my final slide here, which is just to talk about the outlook. So, based on our performance year to date, we are upgrading our financial expectations for the year.

Henrik Juuel: Our previous guidance said DKK 5.5 billion to DKK 5.7 billion, but with the current order book on our Public Partners business, we are upgrading that to approximately DKK 2.5 billion, which gives a total revenue of DKK 5.7 billion. We keep the Travel Health guidance for the full year unchanged at approximately DKK 3 billion. Our EBITDA margin, we have increased from approximately 28% to expected approximately 30%, driven of course by the upgrade on our expectations to the top line, but also by the very strong first 6 months and the very strong gross margin we have seen H1. With that, I will give the word back to the operator and ask to open up for questions.

Speaker #2: Our previous guidance was DKK 5.5 to 5.7 billion, but with the current order book in our public preparedness business, we are upgrading that to approximately DKK 2.5 billion.

Speaker #2: Which gives a total revenue of DKK 5.7 billion. We keep the travel health guidance for the full year unchanged at approximately DKK 3 billion.

Speaker #2: And then our EBITDA margin, we have increased from approximately 28% to an expected approximately 30%, driven of course by the upgrade on our expectations to the top line.

Speaker #2: But also by the very strong first six months and the very strong gross margin we have seen in the first half of the year. So, with that, I will give the word back to the operator and ask to open up for questions.

Speaker #1: Thank you. As a reminder, to ask a question, please press *11 on your telephone and wait for your name to be announced. To withdraw your question, please press *11 again.

Operator: Thank you. As a reminder, to ask a question, please press star one one on your telephone and wait for your name to be announced. To withdraw your question, please press star one and one again. We will now take our first question from the line of Thomas Bowers from SEB. Please go ahead.

Speaker #1: We will now take our first question from the line of Thomas Bowers from SEB. Please go ahead.

Speaker #3: Yes, thank you very much and congrats on a very strong quarter here. So just kicking off with the travel health—so you stick to around $3 billion in your full year guidance?

Thomas Bowers: Yes, thank you very much, and congrats on a very strong quarter here. Kicking off with the Travel Health, you stick to the around DKK 3 billion in your full year guidance. Implied H2 year-over-year growth is now -20%, or you can say -10% when you adjust for the partner sales. My question is this mainly lack of transparency or are you maybe facing some capacity issues here in H2? Then second question, on the EBITDA margin, you lift that by 2 percentage points since the last upgrade and only a very small JYNNEOS lift here in the numbers. Does this actually imply that you see a structurally better gross margin improvement from the tech transfer now?

Speaker #3: So, implied second-half-year, year-over-year growth is now minus 20 percent, or you can say minus 10 percent when you adjust for the partner sales. So my question is: is this mainly due to lack of transparency?

Speaker #3: Or are you maybe facing some capacity issues here in the second half? Then, second question: on the EBITDA margin, you lifted that by 2 percentage points since the last upgrade.

Speaker #3: And only a very small journeous lift here in the numbers. So does this actually imply that you see a structurally better gross margin improvement from the tech transfer now?

Speaker #3: And if I may add to that, if we're to assume that Journeos were around the midpoint of your long-term target, so €1.7 to €1.8 billion, how should we think about the implied EBITDA margin for 2026?

Thomas Bowers: If I may add to that, if we are to assume that JYNNEOS were around those sort of midpoint of your long-term target, so DKK 1.7 billion, DKK 1.8 billion, how should we think about implied EBITDA margin for 2026? Just finally, just in regards to the share buyback, you plan to start in Q3, but can you maybe just elaborate a little bit on when you expect the program to be completed? Thank you.

Speaker #3: And then just finally, in regard to the share buyback—you plan to start here in Q3—but can you maybe just elaborate a little bit on when you expect the program to be completed?

Speaker #3: Thank you.

Speaker #2: Yeah, two more seconds. Yeah, I can, yeah. Hi Thomas, thanks for the question. So, on travel health, I think what we need to remember there is that, as I also said in my presentation here, these products are to a varying degree seasonal.

Henrik Juuel: Yeah. Do you want to take it? Yeah, I can. Yeah. Hi, Thomas. Thanks for the question. On Travel Health, I think what we need to remember there is that, as I also said in my presentation here, that these products are to varying degree, seasonal, and the seasons are not necessarily repeated year over year. I think if, let's take TBE as an example. If you look at TBE last year, 45% of the revenue of H1 came in Q1. This year, we actually saw, sorry, of Q2, 45% of the revenue H1 came in Q2. This time it is more than 60%. There is often a shift between the quarters over the years.

Speaker #2: And the seasons are not necessarily repeated year over year. I think, let's take TBE as an example. If you look at TBE last year, 45% of the revenue for the first half came in Q1.

Speaker #2: This year, we actually saw—or sorry, in Q2—45% of the revenue in the first half of the year came in Q2. This time, it’s 60%.

Speaker #2: More than 60%. So there is often a shift between the quarters over the years. I think what we can say on our travel health is that we are extremely pleased with the current performance.

Henrik Juuel: I think what we can say on our Travel Health is that we are extremely pleased with the current performance. I think we have taken it as far as saying that if the current trend continues, we will exceed DKK 3 billion. We feel it is prudent to see how the Q3 pans out before we do anything further on the Travel Health business. We should also remember here that we have supply products, TBE products, our Encepur product into the market with relatively low shelf life. There is a risk that some of that will come back. We do not know that until they actually expire in the autumn. So it is a slight risk there, nothing to be concerned about, but something we are managing. It is, of course, all baked into our guidance for the full year.

Speaker #2: And I think we had taken it as far as saying that if the current trend continues, we will exceed the DKK 3 billion.

Speaker #2: But we feel it's prudent to see how the third quarter pans out before we do anything further on the travel health business. We should also remember here that we have supplied products—TBE products, or in some cases products—with relatively low shelf life into the market.

Speaker #2: And there is a risk that some of that will come back. We don't know that until they actually expire in the autumn, so there is a slight risk there.

Speaker #2: Nothing to be concerned about, but there's something we are managing. It's all, of course, baked into our guidance for the full year. But, of course, if the current trend continues, we will exceed the 3 billion.

Henrik Juuel: If current trend continues, we will exceed DKK 3 billion. On the EBITDA margin, is what we are seeing now a structural improvement? I think that is a little too early to say. I think here we need to remember that we are now running TBE and Rabies in campaign. We have been running our TBE manufacturing the H1 of this year. Our team, they have been extremely efficient. The success rate has been higher than what we anticipated, which means that you can actually absorb more costs into your production. Now we are shifting to Rabies for the H2, so we cannot just copy what we saw in Q1 and paste that into the H2 of this year.

Speaker #2: On the EBITDA margin, is what we are seeing now a structural improvement? I think that is a little too early to say. And I think here we need to remember that we are now running TBE and Rabies in campaign.

Speaker #2: We have been running our TBE manufacturing the first half of this year, and we—or our team—they have been extremely efficient. The success rate has been higher than what we anticipated.

Speaker #2: Which means that you can actually absorb more costs into your production. Now we are shifting to Rabies for the second half. So, we can't just copy what we saw in Q1 and paste that into the second half of this year.

Speaker #2: I think what we can hope for is that the whole concept of campaign manufacturing is paying off, so that you manufacture the same product for a longer period of time.

Henrik Juuel: I think what we can hope for is that if the whole concept of campaign manufacturing is paying off, so that you manufacture the same product for a longer period of time, but that is too early to say. That is why I do not think we can say yet that the good performance is a structural, sustainable improvement. On the share buyback, when are we going to launch that? I think it can happen any time, basically. We have no reason to postpone this. There are just some practical things. We need to agree with the board the exact date, et cetera, and with the banks and everything, but that is going to happen very soon. Yeah, sorry. I can see it is Q3, but I was asking when it can be completed, if that is just going to be before the AGM or?

Speaker #2: But that is too early to say, and that's why I don't think we can say yet that the good performance is a structural, sustainable improvement.

Speaker #2: And on the share buyback, when are we going to launch that? I think it can happen any time, basically. We have no reason to postpone this.

Speaker #2: I've just got some practical things. We need to agree with the board on the exact date, etc., and with the banks and everything. But that is going to happen very soon.

Speaker #3: Yeah, sorry. It was, yeah, I can see it's Q3. But I was asking when it can be completed. Is that just going to be before the ATM or...?

Speaker #2: Yeah, I think that's a good question. It really depends, of course, under the Safe Harbor rules. There's a limit to how much you can actually buy in the market.

Henrik Juuel: Yeah, I think that is a good question. It really depends, of course, under the safe harbor rules, there is a limit to how much you can actually buy in the market. The last one, DKK 500 million, took approximately six months to complete. We have seen to date there is extremely good liquidity. Hopefully, the recent years will create some more liquidity in the share, but I would say around six months, six, seven months it will probably take. So we anticipate that it will be completed before our AGM. As we have announced, we are intending to cancel those shares, but that will require an AGM authorization as well, so the timing would fit pretty well with that. Okay, that is perfect. Great. Thank you very much.

Speaker #2: The last one—500 million—took approximately six months to complete. We have seen today there's extremely good liquidity. Hopefully, the recent years will create some more liquidity this year.

Speaker #2: But I would say around six or seven months it will probably take. So we anticipate that it will be completed before our ATM.

Speaker #2: And, as we have announced, we are intending to cancel those years. But that will require an ATM authorization as well, so the timing would fit pretty well with that.

Speaker #3: Okay, that's perfect. Great. Thank you very much.

Speaker #1: Thank you. We will now take the next question. From the line of Hakon Häme from Danske Bank, please go ahead.

Operator: Thank you. We will now take our next question from the line of Håkon Heimer from Danske Bank. Please go ahead.

Speaker #4: Great, thanks for taking my questions. First, can you provide some color on the TBE market? You grew 17%, and your competitor TicoVac grew at similar rates in H1.

Håkon Heimer: Great. Thanks for taking my questions. First, can you provide some color on the TBE market? You grew 17%, and your competitor, CheckVac, grew with similar rates in H1, while you state that the German market only grew 3%. What other countries are driving this market growth? On the VIMKUNYA, your revenue declined in Q2 compared to Q1 during this launch phase. Is the downgrade of the full year sales only due to the delay of the Centers for Disease Control and Prevention ACIP recommendation, or have any of your launches in Europe not delivered as expected? Thank you.

Håkon Hemme: Great. Thanks for taking my questions. First, can you provide some color on the TBE market? You grew 17%, and your competitor, CheckVac, grew with similar rates in H1, while you state that the German market only grew 3%. What other countries are driving this market growth? On the VIMKUNYA, your revenue declined in Q2 compared to Q1 during this launch phase. Is the downgrade of the full year sales only due to the delay of the Centers for Disease Control and Prevention ACIP recommendation, or have any of your launches in Europe not delivered as expected? Thank you.

Speaker #4: While you state that the German market only grew 3%, what other countries are driving this market growth? And on the Vimconia, can you explain why your revenue declined in Q2 compared to Q1 during this launch phase?

Speaker #4: So, is the downgrade of the full-year sales only due to the delay of the CDC ACIP recommendation, or have any of your launches in Europe not delivered as expected?

Speaker #4: Thank you.

Henrik Juuel: I will take VIMKUNYA, and you take TBE? Yeah. Thanks, Håkon, for the question here. I think on TBE, you are right. When you look at the market growth and our market share, we are growing faster than the market, significantly faster with the 17%. You would argue, okay, then you should be gaining more share. We are gaining a share in the market. There are also other markets in Germany where we do not have all the market details, so they are also contributing. One thing to be aware of with this market data is that it is not perfect. It gives a good indication about in which direction the market is moving. It is typically lacking in terms of time compared to the revenue we are recognizing. Remember, our revenue, we recognize that when we sell it into the wholesalers.

Speaker #2: I pay, Vimconia. Can you take TBE?

Speaker #3: Yeah.

Speaker #2: Yes. So let me thank Hakon for the question here. I think on TBE, you're right. When you look at the market growth and our markets here, we are growing and growing faster than the market.

Speaker #2: Significantly faster, with a 17%. And then you would argue, okay, then you should be gaining more share. We are gaining share in the market.

Speaker #2: There are also other markets, besides Germany, where we don't have all the market details. They're also conservative. And one thing to be aware of with this market data is that it's not perfect.

Speaker #2: It gives a good indication about in which direction the market is moving. It's typically lacking in terms of timing compared to the revenue we are recognizing.

Speaker #2: Remember, our revenue—we recognize that when we sell it into the wholesalers. So that means probably the last couple of months in the second quarter are not even included in the market.

Henrik Juuel: That means probably the last couple of months in Q2 is not even included in the market because it is sitting with wholesalers still. The end market data is based on basically consumption out of pharmacies and other dispensing units. I think we should be a little careful looking too much of that, but of course, they give us a good idea about the trend. Is the market growing? To what extent, approximately? How are the market shares doing? Then there was one on VIMKUNYA. Paul, you wanted to take that one? Yeah. On VIMKUNYA, there is always a few dynamics when you are in the launch phase. Essentially, we are seeing good demand in the EU where we have launched.

Speaker #2: Because it's sitting with wholesalers still, and the in-market data is based on basically consumption out of pharmacies and other dispensing units. So, I think we should be a little careful about looking too much at that.

Speaker #2: But of course, they give us a good idea about the trend. Is the market growing? To what extent, approximately? And how are the market shares doing?

Speaker #2: And then there was one on Vimconia. Paul, you wanted to take that one?

Speaker #5: Yeah. So, on Vimconia, I mean, there are always a few dynamics when you are in a launch phase. But essentially, we are seeing good demand in the EU where we've launched.

Paul Chaplin: Germany was one of the first countries where we launched in the EU, and we are seeing strong growth, and in other countries where we are also launching. So the change in the guidance is primarily due to the headwinds that we are seeing in the US. So I am confirming it is mainly the US where we are seeing the headwinds due to the lack of publication. While we have been successful in encouraging some distributors and wholesalers to purchase, we have not been successful with everyone where they have very strict policies that they are awaiting the publication.

Speaker #5: Germany was one of the first countries where we launched in the EU, and we're seeing strong growth. And in other countries, we're also launching.

Speaker #5: So, really, the change in the guidance is primarily due to the headwinds that we're seeing in the US. So I am confirming it is mainly the US where we're seeing the headwinds due to the lack of publication.

Speaker #5: And while we have been successful in encouraging some distributors and wholesalers to purchase, we haven't been successful with everyone, where they have very strict policies and are awaiting the publication.

Speaker #4: Thank you.

Håkon Heimer: Thank you.

Håkon Hemme: Thank you.

Speaker #1: Thank you. We will now take the next question from the line of Romy Okonor from Kempen. Please go ahead.

Operator: Thank you. We will now take the next question from the line of Romy O'Connor from Kempen. Please go ahead.

Romy O'Connor: Hi, team. Thank you for your presentation today, and congrats on the strong H1. I have three questions. The first on Rabipur. So we saw quite some strong growth this quarter, and while you highlight the underlying market growth in the US and Germany, can you help us bridge that difference? So how much is coming from underlying volumes or geographic contributions, et cetera? Thinking about the next H2 of this year, how much of the underlying rabies market growth do you consider is driven by this structural demand, or do you think it is something that we can expect to normalize? Lastly, on the share buyback announced, how can we now interpret this in the context of continued M&A ambitions? Thank you.

Speaker #6: Hi team. Thank you for your presentation today, and congratulations on the strong half-year. I have three questions. The first is on Rabipor. We saw quite strong growth this quarter.

Speaker #6: And while you highlight the underlying market growth in the US and Germany, can you help us bridge that difference? So, how much is coming from underlying volumes?

Speaker #6: Or geographic contributions, etc.? And thinking about the next half of this year, how much of the underlying rabies market growth do you consider is driven by this structural demand?

Speaker #6: Or do you think it's something that we can expect to normalize? And lastly, regarding the share buyback announced, how should we now interpret this in the context of continued M&A ambitions?

Speaker #6: Thank you.

Speaker #2: Yeah, okay. Thank you, Romy, for the question here. On Rabipor, I think some of the same factors play in as we just talked about with regards to TBE here.

Henrik Juuel: Yeah. Okay. Thank you, Romy, for the question here. On Rabipur, I think some of the same factors play in as we just talked about with regards to TBE here. We are growing the product by 40%. The market has grown by 20%-plus. Other factors explain up to the 40%. We are only commenting on US and Germany in terms of market performance, but we are actually already seeing our other markets growing with close to 100%, so they are actually starting to contribute to the overall growth in the market. Secondly, I think what I believe we are seeing on rabies, and maybe that is to your other question as well, what is going to happen for the remainder of the year?

Speaker #2: We are growing the product by 40%. The market has grown by 20-plus percent. There are other factors explaining up to the 40%. We are only commenting on the US and Germany.

Speaker #2: In terms of market performance, we are actually already seeing our other markets growing by close to 100%. So they are actually starting to contribute to the overall growth in the market.

Speaker #2: And then secondly, I think what I believe we are seeing on rabies—and maybe that's to your other question as well—what's going to happen for the remainder of the year?

Speaker #2: I think, obviously, we don't know, but I think there seems to be good and very strong momentum out there. But we are not expecting that to stop in the short term.

Henrik Juuel: I think, obviously, we do not know, but I think there seems to be a good and very strong momentum out there, but we are not expecting that to stop short term. There is an extremely high awareness around the risk of rabies, and therefore very high demand for our vaccine. I think what also happens typically when you see such an abrupt, a steep increase in demand is that there are other factors amplifying the growth. For instance, wholesalers, they start seeing that they need to acquire safety stock. So the stock level with these will actually go up. So that is one impact that will help, that is sort of amplifying the whole growth. Also helping us to explaining the 40% growth that we are seeing for the H1. On the share buyback, let me see.

Speaker #2: There is an extremely high awareness around the risk of rabies, and therefore a very high demand for our vaccine. But I think what also happens typically when you see such an abrupt, steep increase in demand is that there are other factors amplifying the growth.

Speaker #2: For instance, wholesalers—they start seeing that they need a higher safety stock. So, the stock level will actually go up. That is one impact that will help, that is sort of amplifying that whole growth.

Speaker #2: Also, helping us to explain the 40% growth that we've seen for the first half-year. On the share buyback, let me see.

Paul Chaplin: Impact on M&A.

Speaker #4: Impact on M&A.

Speaker #2: Yeah. Impact on M&A. I think we have concluded that the 750 million is actually a fine balance between securing what we need for potential M&As and then, after that, handing back the money to the shareholders to give them a return.

Henrik Juuel: Yeah, impact on M&A. I think we have concluded that the DKK 750 million is actually a fine balance between securing what we need for potential M&As, and then after that, handing back the money to the shareholders to give them a return for their investment. We are constantly looking at M&As, and we hope we will identify the right ones. We have no debt today. We can easily go out and borrow money for potential acquisitions, and then we still have a very strong cash position even after a share buyback. So through a combination of debt financing and cash position, we believe that we can actually finance the opportunities that we are looking at.

Speaker #2: For the investment, we are constantly looking at M&As, and we hope we will identify the right ones. We have no debt today. We can easily go out and borrow money for potential acquisitions.

Speaker #2: And then we still have a very strong cash position, even after the share buyback. So, through a combination of debt financing and our cash position, we believe that we can actually finance the opportunities that we are looking at.

Speaker #6: Great. All clear. Thank you.

Romy O'Connor: Great. All clear. Thank you.

Speaker #1: Thank you. As a reminder, to ask a question, please press star one and one on your telephone. We will now take the next question from the line of Alina Shamsi from Jefferies.

Operator: Thank you. As a reminder, to ask a question, please press star 1 and 1 on your telephone. We will now take the next question from the line of Alina Shamsi from Jefferies. Please go ahead.

Speaker #1: Please go ahead.

Alina Shamsi: Hi. Thank you for taking my questions. Firstly, I was wondering, could you please provide an update on the CEO search process? More broadly, do you feel the company can execute a larger strategic transaction during this interim period, or would you prefer to have a permanent CEO in place before considering any significant M&A activity? Secondly, on VIMKUNYA, how do you see disease awareness progressing here, and is the focus primarily on educating physicians or travelers? Thank you.

Speaker #7: Hi, thank you for taking my questions. Firstly, I was wondering, could you please provide an update on the CEO search process? And more broadly, do you feel the company can execute a larger strategic transaction during this interim period?

Speaker #7: Or would you prefer to have a permanent CEO in place before considering any significant M&A activity? And then secondly, on Vimconia, how do you see disease awareness progressing here?

Speaker #7: And is the focus primarily on educating physicians or travelers? Thank you.

Speaker #5: Yeah, I guess I'd better take that one. So, on the CEO search, that's with the Board, and the process needs to take as long as it takes because the Board needs to make sure that they get the right candidate.

Paul Chaplin: Yeah. I guess I better take that one. On the CEO search, that is with the board, and the process needs to take as long as it takes because the board needs to make sure that they get the right candidate. It is on public record I am contracted till the end of the year, and everything is fine. In terms of M&A, I think, and again, I guess I can say this because I am the outgoing CEO, I think there is far too much emphasis put on the change of the CEO. The CEO is indeed important person. But in all fairness, while I would like to take all the credit for everything that we have done in terms of rabies, TBE, and the other assets, it is the organization and the management team that execute.

Speaker #5: It's on public record—I'm contracted till the end of the year, and everything's fine. In terms of M&A, I think—and again, I guess I can say this because I'm the outgoing CEO.

Speaker #5: I think there's far too much emphasis put on the change of the CEO. The CEO is indeed an important person. But in all fairness, while I would like to take all the credit for everything that we've done in terms of rabies, TBE, and the other assets, it's the organization and the management team that execute.

Speaker #5: So while the CEO is an important role, an important position, I think it is overemphasized how important one individual is. Particularly in an EU setting, where we have management, we have a board, and obviously we have the underlying management who, frankly, do all the heavy lifting.

Paul Chaplin: While the CEO is an important role, an important position, I think it is overemphasized how important one individual is, particularly in an EU setting where we have a management, we have a board, and obviously we have the underlying management who frankly do all the heavy lifting. Do we have an appetite for M&A? For sure. If we find one that is right, that fits the mandate that we are looking for, which is a good commercial fit, we will be announcing it, and regardless of whether I am here, someone else is here, no one is here or whatever, it will play no role. In terms of VIMKUNYA, it is both, to be fair. Awareness is to out in the general population, making sure people are aware that there is a mosquito-transmitted disease where they may be going on vacation.

Speaker #5: So do we have an appetite for M&A? For sure. If we find one that is right, that fits the mandate that we're looking for—which is a good commercial fit—we'll be announcing it. And regardless of whether I'm here, someone else is here, no one's here, or whatever, it will play no role.

Speaker #5: In terms of Vimconia, it's both, to be fair. So, awareness is to get out in the general population, making sure people are aware that there's a mosquito-transmitted disease where they may be going on vacation.

Speaker #5: That also includes the south of France, for example, where most people think it's safe. But it's also for healthcare professionals, who may not be as familiar with the disease and/or the severity of the disease.

Paul Chaplin: That also includes the South of France, for example, where most people think it is safe. But it is also for healthcare professionals who may not be as familiar with the disease and/or the severity of the disease. Because again, when people go to get a travel health vaccine, they are looking for the healthcare professional to guide them, because often you need more than one vaccination, and if it is an out-of-pocket expense, you really have to decide which one are you going to take. In my presentation, I mentioned that I think rabies is becoming more and more of a standard travel vaccine because of the severity. And I think it is important that not only are the public aware of VIMKUNYA and the dangers, but healthcare professionals are also educated on the severity of that disease. It is on both.

Speaker #5: Because, again, when people go to get a travel health vaccine, they are looking for the healthcare professional to guide them, because often you need more than one vaccination.

Speaker #5: And if it's an out-of-pocket expense, you really have to decide which one you're going to take. In my presentation, I mentioned that I think rabies is becoming more and more of a standard travel vaccine because of the severity.

Speaker #5: And I think it's important that not only are the public aware of Vimconia and the dangers, but healthcare professionals are also educated on the severity of that disease.

Speaker #5: So it's on both.

Speaker #7: Thank you.

Henrik Juuel: Thank you.

Speaker #1: Thank you. Our next question comes from the line of Thomas Bowers from SCB. Please go ahead.

Operator: Thank you. Our next question comes from the line of Thomas Bowers from SEB. Please go ahead.

Speaker #3: Oh, thank you for taking my follow-up. So first, just on Joneos—so you have secured €800 million for 2027 already. I'm just curious about this relative to a normal underlying base, and I understand it's difficult to answer.

Thomas Bowers: Oh, thank you for taking my follow-up. First, just on JYNNEOS. You have secured DKK 800 million for 2027 already. I am just curious about this relative to a normal underlying base. I know it is difficult to answer. Are you getting a little bit more confident in reaching at least the midpoint of the DKK 1.5 billion to DKK 2 billion given the somewhat uncertainty with new BARDA contract timing? Then just on, I am not sure if I missed it in the prepared remarks here, you did mention something on it, Henrik, but just on Valneva and Dynavax. Of course, aware that they are fully terminated now. But that revenue you lost in here during the H1, do you have any idea on how much you sort of have recovered on those? I think it was around DKK 100 million for H1 2025.

Speaker #3: But are you getting a little bit more confident in reaching at least the midpoint of the 1.5 to 2 billion, given the somewhat uncertainty with new buyer contract timing?

Speaker #3: And then, just on—I'm not sure if you have missed it in the prepared remarks; you didn't mention something on it, Henrik—but just on Valneva and Dynavax.

Speaker #3: So, of course, I'm aware that they are fully terminated now. But that revenue you lost in here during the first half of the year—do you have any idea how much you have recovered on those?

Speaker #3: I think it was around 100 million for the first half of 2025. So, any idea on how much you have gained here since then? Thank you.

Thomas Bowers: Any idea on how much you have gained here since then? Thank you.

Paul Chaplin: I will take the JYNNEOS.

Speaker #5: I'll take the Joneos. So, on Joneos, Thomas, I think as you know, it all depends on what we normally see in terms of what we're booking for next year.

Henrik Juuel: Yeah.

Paul Chaplin: On JYNNEOS, Thomas, I think as you know it all depends what we normally see in terms of what we are booking for next year. Because it all depends on when the order comes in and when the discussions happen. I think where we are getting is more and more comfortable. As I said, for many years now, we have been saying DKK 1.5 billion, DKK 2 billion base business. I think we are becoming more and more comfortable that we are going to be in the region at the upper end of that, around the DKK 2 billion mark. When we guided DKK 1.8 billion to DKK 2 billion this year, we did not have all that secured, obviously. We have actually been able to increase the guidance twice now in response to more orders coming in. The orders will come in when they come in. I think it is encouraging there is already DKK 800 million in the book.

Speaker #5: I think, because it all depends on when the order comes in and when the discussions happen. I think where we're getting is more and more comfortable.

Speaker #5: As I said, for many years now we've been saying one-and-a-half to two billion base business. I think we're becoming more and more comfortable that we're going to be in the region at the upper end of that—around the 2 billion mark.

Speaker #5: When we guided $1.8 to $2 billion this year, we didn't have all that secured, obviously. And we've actually been able to increase the guidance twice now in response to more orders coming in.

Paul Chaplin: We have actually been able to increase the guidance twice now in response to more orders coming in. The orders will come in when they come in. I think it is encouraging there is already DKK 800 million in the book.

Speaker #5: So the orders will come in when they come in. I think it's encouraging—there's already 800 million in the book. But to be honest, I would already be confident sitting here that we would be securing around the 2 billion, whether we had that or not.

Paul Chaplin: But to be honest, I would already be confident sitting here that we would be securing around DKK 2 billion whether we had that or not. I think the analysts, yourself and others, as well as the market, should get more and more comfortable with that DKK 2 billion-ish base business moving forward. And then Henrik.

Speaker #5: So I think the analysts, yourself and others, as well as the market, should get more and more comfortable with that $2 billion-ish base business moving forward.

Speaker #5: And then Henrik?

Henrik Juuel: Yeah. Then to your other question, Thomas, on the partner products. You are right that we lost approximately DKK 100 million compared to last year. That was primarily the Japanese encephalitis product that we were promoting primarily in Germany. But then on the other hand, we took our own products back in certain markets. And that has actually helped us, first of all, the price that we can recognize on the revenue is higher as it is no longer transfer price to our partner, it is the full price to the wholesalers. So there is a positive price impact there. And secondly, we have actually managed to grow the business in these markets beyond the level that our partner could do at the time when they were promoting it.

Speaker #2: Yeah. Generally, to your other question, Thomas, on the partner products, you're right that we lost approximately $100 million compared to last year. That was primarily the Japanese encephalitis vaccine product that we were promoting.

Speaker #2: Primarily in Germany. But then on the other hand, we took our own products back in certain markets, and that has actually helped us. First of all, the price that we can recognize on the revenue is higher, as it's no longer a transfer price to our partner.

Speaker #2: It's the full price to the wholesalers, so there is a positive price impact there. And secondly, we have actually managed to grow the business in these markets beyond the level that our partner could do at the time when they were promoting it.

Speaker #2: So I think it's too early to say that it's a net gain, because we lost 100 million from the Japanese sensitive license. But we have actually seen a very positive impact of taking our product back in the other markets.

Henrik Juuel: I think it is too early to say that it is a net gain because we lost DKK 100 million from the Japanese encephalitis, but we have actually seen a very positive impact of taking our product back in the other markets, and it has helped us gain the necessary scale to enter into these markets so that we have an organization in the UK, in France, in Canada today, these markets that were served by our partner previously. And we can use that as a platform also to launch VIMKUNYA and other products. So while we are sad to see DKK 100 million disappearing out, this is a win for Bavarian Nordic that we are taking the business back.

Speaker #2: And it has helped us gain the necessary scale to enter into these markets, so that we have an organization in the UK, France, and Canada today—these markets that were served by our partner previously.

Speaker #2: And we can use that as a platform also to launch VIMCONIA and other products. So, while we are sad to see $100 million disappearing out, this is a win for Bavarian Nordic that we are taking the business back.

Speaker #3: Yeah, sure. Great. Thank you.

Thomas Bowers: Yeah, sure. Great. Thank you.

Speaker #1: Thank you. As a reminder, to ask a question, please press star, one, and one on your telephone. That's star, one, and one. There are no further questions at this time.

Operator: Thank you. As a reminder, to ask a question, please press star 1 and 1 on your telephone. That is star 1 and 1. There are no further questions at this time. I would now like to turn the conference back to Paul Chaplin for closing remarks.

Speaker #1: I would now like to turn the conference back to Paul Chaplin for closing remarks.

Speaker #5: Yeah. Thank you. Thanks, everyone, for your time and for joining, and for all the questions. Have a great day. Thank you.

Paul Chaplin: Yeah. Thank you. Thanks everyone for your time in joining and all the questions. Have a great day. Thank you.

Operator: This concludes today's conference call. Thank you for participating. You may now disconnect.

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Q2 2026 Bavarian Nordic AS Earnings Call

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