The Danish biotech firm Bavarian Nordic A/S is pursuing debt and equity financing to advance its growth strategy following the collapse of a proposed take-private transaction. The move comes as the company seeks to maintain momentum in vaccine development and commercialization.
- Bavarian Nordic A/S is pursuing €300 million in debt financing via senior notes with 5–10 year maturities.
- A separate €150 million equity rights offering is planned to support R&D and manufacturing expansion.
- The company's market cap was €2.1 billion as of December 2025.
- The take-private deal collapse was attributed to market and regulatory headwinds.
- Funding efforts aim to sustain clinical development for rabies, smallpox, and emerging infectious disease vaccines.
- Equity issuance may result in modest shareholder dilution but is expected to fuel long-term growth.
Bavarian Nordic A/S has announced plans to raise capital through a combination of debt instruments and equity issuance after its planned take-private deal was terminated in late 2025. The company, which specializes in viral vector-based vaccines and therapies, cited shifting market conditions and regulatory uncertainties as key factors behind the deal’s collapse. Despite this setback, CEO Anders K. K. Møller emphasized the company's continued commitment to expanding its pipeline and global footprint. Financial details confirm the scale of the funding effort: Bavarian Nordic intends to issue up to €300 million in senior notes with maturities ranging from five to ten years, alongside a separate rights offering targeting EUR 150 million in new equity. These measures are meant to support ongoing clinical trials for its rabies, smallpox, and emerging infectious disease candidates, as well as infrastructure upgrades at its manufacturing facilities in Denmark and the U.S. The capital strategy reflects a broader trend among mid-cap biopharmaceutical firms facing challenges in securing private equity backing amid tighter credit markets. The planned equity issuance may lead to a modest dilution of existing shareholders, though management has stated that the long-term value creation potential outweighs near-term ownership impacts. The company’s market capitalization stood at approximately €2.1 billion as of December 2025, positioning it among the top European vaccine developers. Investors and analysts are closely monitoring the execution of this dual financing approach, which could influence Bavarian Nordic’s credit rating and investor sentiment. The outcome may also signal a shift in how biotech firms navigate capital markets when traditional M&A pathways falter.