COPENHAGEN, Dec 1 (Reuters) - Danish biotech firm Bavarian Nordic A/S (BAVA.CO) aims to raise up to 300 million crowns ($60.62 million) by issuing stock to existing shareholders to develop and market new drugs, it said on Tuesday.
Bavarian Nordic shares fell sharply on the announcement and traded down 7.1 percent at 1100 GMT, against the trend of the MSCI European pharma, biotech and life sciences index .MIEU0PB00PEU which was up 1.37 percent.
Bavarian Nordic said in a statement that it expected proceeds from the rights issue to be between 250 million and 300 million crowns and it would carry out the issue in early 2010.
The company has engaged Nordea NDA.ST and SEB Enskilda (SEBa.ST) as financial advisors for the issue, it said.
The firm said on Monday that it would seek approval next year to sell its smallpox vaccine Imvamune in Canada, which would be the first market for the vaccine. It is also working on getting a permit to deliver the vaccine to the U.S. government. [ID:nGEE5AT07Y]
Bavarian Nordic said a rights issue would help it “to gain the independence to execute its activities within biodefence and cancer”.
If the rights issue succeeds and a contract to supply 20 million doses of Imvamune to the U.S. government is fulfilled according to plan, Bavarian Nordic will have sufficient funds to operate until the end of 2012 when cash should begin covering operational costs, the company said.
In addition to its efforts to bring Imvamune to market, Bavarian Nordic said it was continuing preparations for phase III studies of Prostvac, a vaccine candidate for patients with advanced prostate cancer. (Reporting by John Acher; Editing by Sharon Lindores) ($1=4.949 Danish Crown)
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