Bavarian Nordic falls after ProstVac update
Bavarian Nordic A/S (CSE:BAVA) fell DKK102.50 (40%) to DKK156 on Thursday after reporting it is considering a rights offering to fund Phase III testing of its ProstVac prostate cancer vaccine. The company, which said it is in ongoing partnership discussions for the product, plans to continue ProstVac development independently while searching for a partner. To fund continued development, Bavarian Nordic is reviewing alternate options, including the rights issue, and plans to present its conclusions at its annual meeting on April 26. The company said if no funding options materialize, it would need to postpone Phase III testing of ProstVac and reduce existing R&D programs, as well as reduce costs in supporting functions and investments.
In December, Bavarian Nordic received an SPA from FDA for a planned Phase III trial to evaluate ProstVac to treat metastatic castration-resistant prostate cancer (CRPC). The company said on Thursday that it expects the trial to cost $150 million over 2011-15. It ended 2010 with DKK460 million ($82.3 million) in cash. ...