The 2016 report from Danish Bavarian Nordic (BAVA of Copenhagen or BVNRY here) finally landed today and after cutting through the chaff here is its gist. Sales fell to DKK 1.0067 bn from 1.0206 in 2015. Before tax income (BTI) came to DKK 33 mn up from 1.6 mn in 2015 (but below the level of 2013.) Net profit halved to DKK 30.6 mn or 1 kroner per share from 59.4 mn or 2.1/sh last year despite the number of shares outstanding rising by over 10% in 2016.

Bavarian also produced guidance for 2017. It expects revenues to hit DKK 1.3 bn and BTI to reach ~350 mn, more than 10x last year’s level. Its guidance for 2016 was pretty much on the nail and its revenues from deals with drug majors are unlike to vary much from its expectations, so this is useful. It will post revenue of DKK 399 mn from Bristol-Myers Squibb (BMY) for licensing Prostvac, its prostate cancer jab, after phase III trials are concluded in H2. It expects to book another DKK 800 mn from the US and Canada for its non-replicating smallpox jab Imvamune. Another DKK 100 mn or so will come form R&D contracts. Its US$ exposure is hedged by forward contracts.

It will spend about DKK 425 mn for the BMS phase III Prospect trials and the Imvamune liquid-frozen smallpox Phase III trail and other studies of CV301, a cowpox agent for delivering tumor suppressant antigens against non-small cell lung cancer (NSCLC) and MVA-BN against respiratory syncytial virus moving to phase II.

It also expects its cash on hand to rise from DKK 2.292 bn at end Dec. 2016 to DKK 2.4 bn from undrawn credit lines and a euros 50 mn loan from the European Investment Bank which it plans to draw down.

Separately, BVNRY also postponed the cash bonus for CEO Paul Chaplin and CFO Ole Larson for 3 years by converting the money into 8,463 restricted stock units at DKK 10/sh if they remain at the job during that term.

Moreover Swiss Roche (RHHBY) will test its Tecentriq along with CV301 to treat advanced bladder cancer and will supply the drug for phase II trials later this year. CV301 generates a T-cell response to two tumor antigens overexpressed by many cancers. This followed a deal late last year between BVNRY and BMY to test CV301 to treat NSCLC alongside its Opdivo (which failed as a monotherapy for BMY) as well as other cancers.