The share capital comprises a total of 79,236,728 shares of DKK 10 as of December 31, 2025 (78,854,857 shares). The shares are not divided into share classes, and each share carries one vote.
Treasury shares
In January 2025, the Board of Directors decided to launch a share buy-back program, under which the Company bought back 760,275 of its own shares (162,288 shares in 2024). The purpose of the share buy-back program was to adjust the capital structure and to meet the Company's obligations arising from the share-based incentive program for the Executive Management and the Board of Directors.
Treasury shares represent 1.22% (0.36%) of the total share capital.
For further information about share based payment see note 29.
The share capital comprises a total of 78,854,857 shares of DKK 10 as of December 31, 2024 (78,097,834 shares). The shares are not divided into share classes, and each share carries one vote.
Rules on changing Articles of Association
Changing the Articles of Association requires that the resolution passes by at least 2/3 of the votes as well as 2/3 of the voting capital represented.
Transactions on the share capital
DKK thousand | 2025 | 2024 | 2023 | 2022 | 2021 |
Share capital as of January 1 | 788,548 | 780,978 | 707,354 | 704,684 | 584,501 |
Issue of new shares | 3,819 | 7,570 | 73,624 | 2,670 | 120,183 |
Share capital as of December 31 | 792,367 | 788,548 | 780,978 | 707,354 | 704,684 |
The share capital comprises a total of 78,854,857 shares of DKK 10 as of December 31, 2024 (78,097,834 shares). The shares are not divided into share classes, and each share carries one vote.
Rules on changing Articles of Association
Changing the Articles of Association requires that the resolution passes by at least 2/3 of the votes as well as 2/3 of the voting capital represented.
Note 1
Material accounting policies
Basis of preparation
The consolidated financial statements for Bavarian Nordic have been prepared in accordance with the IFRS Accounting Standards class D as adopted by the EU and Danish disclosure requirements for the consolidated financial statements of listed companies. Danish disclo-sure requirements for the presentation of consolidated financial statements are imposed by the Statutory Order on Adoption of the IFRS Accounting Standards issued under the Danish Financial Statements Act.
The accounting policies are unchanged from last year except for changes due to implementation of new and revised standards that were effective January 1, 2025.
The consolidated financial statements are presented in Danish kroner (DKK), which is the functional currency of the Parent Company.
The consolidated financial statements are presented on a historical cost basis, apart from derivative financial instruments and securities, which are measured at fair value.
The accounting policies have been consistently applied for the financial year and for the comparative figures except for implementation of new standards and amendments, see further below.
In the narrative sections of the consolidated financial statements comparative figures for 2024 are shown in brackets.
Implementation of new and revised standards and interpretations
Management has assessed the impact of new or amended and revised accounting standards and inter-pretations issued by the IASB and the IFRS Accounting Standards endorsed by the European Union effective on or after January 1, 2025. It is assessed that application of amendments effective from January 1, 2025 has not had a material impact on the consolidated financial statements for 2025. Furthermore, Management does not anticipate any significant impact on future periods from the adoption of these amendments.
Standards and interpretations not yet in forceAt the date of publication of the consolidated financial statements, a number of new and amended standards and interpretations have not yet entered into force or have not yet been adopted by the EU. Therefore, they are not incorporated in the consolidated financial state-ments. None of the new or amended standards and interpretations are expected to have a material impact on the consolidated financial statements.
None of the new or amended standards and interpre-tations are expected to have a material impact on the consolidated financial statements.
The Group is still in the process of assessing the impact of the new IFRS 18 accounting standard, particularly with respect to the structure of the Group\u2019s income statement, the statement of cash flows and the addi-tional disclosures required for MPMs. The Group is also assessing the impact on how information is grouped in
the financial statements, including for items currently labelled as \u2018other\u2019.
Applying materiality
The consolidated financial statements are a result of processing large numbers of transactions and aggre-gating those transactions into classes according to their nature or function. The transactions are presented in classes of similar items in the consolidated financial statements. If a line item is not individually material, it is aggregated with other items of a similar nature in the consolidated financial statements or in the notes.
The specific disclosures required by the IFRS Accounting Standards are provided in the Consolidated Financial Statements unless the information is considered imma-terial to the users of the financial statements.
Accounting policies
The accounting policies for specific line items are described in the notes to the financial statements. Set out below is a description of the accounting policies for the basis of consolidation, foreign currency translation and the cash flow statement.
Recognition and measurement
Income is recognized in the income statement when generated. Assets and liabilities are recognized in the balance sheet when it is probable that any future economic benefit will flow to or from the Group and the value can be reliably measured. On initial recogni-tion, assets and liabilities are measured at cost, except for financials instruments which are measured at fair
value. Subsequently, assets and liabilities are measured as described in the description of the accounting poli-cies in the respective notes to the financial statements.
Basis of consolidation
The consolidated financial statements include Bavarian Nordic A/S and the subsidiaries in which the Group holds more than 50% of the voting rights or otherwise has control.
Principles of consolidation
The consolidated financial statements are prepared on the basis of the financial statements of the Parent Company and the individual subsidiaries, and these are prepared in accordance with the Group\u2019s accounting policies and for the same accounting period.
Intra-group income and expenses together with all intra-group profits, receivables and payables are eliminated on consolidation. In the preparation of the consolidated financial statements, the book value of shares in subsidiaries held by the Parent Company is set off against the equity of the subsidiaries.
Foreign currency translation
On initial recognition, transactions denominated in currencies other than the Group\u2019s functional currency are translated at the exchange rate ruling at the trans-action date.
Receivables, payables and other monetary items denominated in foreign currencies that have not been
settled at the balance sheet date are translated at the exchange rates at the balance sheet date.
Exchange differences between the exchange rate at the date of the transaction and the exchange rate at the date of payment or the balance sheet date, respec-tively, are recognized in the income statement under financials. Property, plant and equipment and intan-gible assets, inventories and other nonmonetary assets acquired in foreign currency and measured based on historical cost are translated at the exchange rates at the transaction date.
On recognition in the consolidated financial state-ments of subsidiaries whose financial statements are presented in a functional currency other than Danish kroner (DKK), the income statements are translated at the average exchange rates of the respective months.
Balance sheet items are translated at the exchange rates at the balance sheet date. Exchange differences arising on the translation of foreign subsidiaries\u2019 opening balance sheet items to the exchange rates at the balance sheet date and on the translation of the income statements from average exchange rates of the respective months to exchange rates at the balance sheet date are recognized as other comprehensive income.
Segment reporting
The Group does not prepare segment reporting inter-nally and therefore only reports one operating segment externally.
Geographic spilt of revenue and revenue from major customers is disclosed in note 3 to the consolidated financial statements. Geographic location of non-cur-rent assets is disclosed in note 15 and 16 to the consoli-dated financial statements.
Cash flow statement
The cash flow statement is prepared in accordance with the indirect method on the basis of the Group\u2019s net result for the year. The statement shows the Group\u2019s cash flows broken down into operating, investing and financing activities, cash and cash equivalents at year end and the impact of the calculated cash flows on the Group\u2019s cash and cash equivalents.
Cash flows in foreign currencies are translated into Danish kroner (DKK) at the exchange rate on the trans-action date.
In the cash flows from operating activities, net profit for the year is adjusted for non-cash operating items and changes in working capital.
Cash flows from investing activities include cash flows from the purchase and sale of intangible assets, prop-erty, plant and equipment, investments and securities.
Cash flows from financing activities include cash flows from the raising and payment of loans and capital increases.
Additionally, cash flows from assets held under finance leases are recognized by way of lease payments made.
Reporting under the ESEF Regulation
The Commission Delegated Regulation (EU) 2019/815 on the European Single Electronic Format (ESEF Regulation) requires the use of a particular electronic reporting format for annual reports of listed companies in the EU. More specifically, the ESEF Regulation requires the annual report to be prepared in XHTML format with iXBRL tagging of the consolidated financial statements including notes.
The Company\u2019s iXBRL tagging has been made using the ESEF taxonomy disclosed in the annexes
to the ESEF Regulation and developed based on the IFRS Accounting Standards taxonomy published by the IFRS Foundation.
The line items in the consolidated financial statements are XBRL-tagged to the elements of the ESEF taxonomy that are considered to match the content of those line items. For line items not considered to be covered by line items defined in the taxonomy, entity-specific extensions to the taxonomy have been incorporated. Except for subtotals, these extensions are anchored to standard elements of the ESEF taxonomy.
Consistently with the requirements of the ESEF Regu-lation, the annual report approved by Management is comprised of a ZIP file bava-2025-12-31-en.zip, which includes an XHTML file that may be opened using standard web browsers, and a number of technical XBRL files enabling mechanical retrieval of the XBRL data incorporated.
Net asset value per share:
Equity
Number of shares at year-end
Share price/Net asset value per share:
Market price per share
Net asset value per share
Equity share, %:
Equity x 100
Total assets
Earnings per share and diluted earnings per share are calculated in accordance with IAS 33 \u201cEarnings per share\u201d and specified in note 14.
Accounting policies
Sale of goods
Revenue from sale of goods is recognized when Bavarian Nordic has transferred control of products sold to the buyer and it is probable that Bavarian Nordic will collect the consideration to which it is entitled for transferring the products. Control of the products is transferred at a point in time, typically on delivery. The amount of sales to be recognized is based on the consideration Bavarian Nordic expects to receive in exchange for its goods. When sales are recognized, Bavarian Nordic also records estimates for a variety of sales deductions, including product returns as well as rebates and discounts to government agencies, wholesalers, health insurance companies, managed healthcare organizations and retail customers. These sales deductions are recognized as \"Gross to net deduc-tion\" under other liabilities. Revenue is measured net of value added tax, duties, etc. collected on behalf of a third party.
Where contracts contain customer acceptance criteria, Bavarian Nordic recognizes sales when the acceptance criteria are satisfied.
The pricing mechanisms in the US market and the different kind of rebates are described below.
Pricing mechanisms in the US market
In the US, sales rebates are paid in connection with government and commercial programs. Key customers in the US include private payers, Group Purchasing Organizations (GPOs) and government payers. GPOs play a role in negotiating price concessions with drug
manufacturers for the commercial channels, and deter-mine which drugs are offered as preferred options on their drug lists.
US Medicaid & Medicare rebates
Medicaid & Medicare are government insurance programs. Medicaid and Medicare rebates have been estimated using a combination of historical experience, product and population growth, price increases, and the impact of contracting strategies. The calculation also involves interpretation of relevant regulations that are subject to changes in interpretative guidance from government authorities. Bavarian Nordic adjusts the provision periodically to reflect actual sales perfor-mance.
Wholesaler charge-backs
Wholesaler charge-backs relate to contractual arrange-ments between Bavarian Nordic and indirect customers whereby products are sold at contract prices lower than the list price originally charged to wholesalers. A wholesaler charge-back represents the difference between the invoice price to the wholesaler and the indirect customer\u2019s contract price. Accruals are calcu-lated for estimated charge-backs using a combination of factors such as historical experience, current whole-saler inventory levels, contract terms and the value of claims received but not yet processed.
Other discounts and sales returns
Other discounts are provided to wholesalers, hospi-tals, pharmacies, etc. They are usually linked to sales volume or provided as cash discounts. Accruals are
calculated based on historical data and recorded as a reduction in gross sales at the time the related sales are recorded. Sales returns are related to damaged or expired products.
Sale of services and licenses
Furthermore, revenue comprises the fair value of the consideration received or receivable for income derived from development services where revenue is measured at the expected net sales price.
Sales of licenses that transfer the rights associated with ownership of intellectual property are recognized at a point in time when control is transferred. Revenue from development services and licenses that do not transfer the right of ownership to intellectual property are recognized over time in line with the execution and delivery of the work.
Agreements with commercial partners generally include non-refundable upfront license and collabora-tion fees, milestone payments, the receipt of which is
dependent upon the achievement of certain clinical, regulatory or commercial milestones, as well as royal-ties on product sales of licensed products, if and when such product sales occur, and revenue from the supply of products. For these agreements that include multiple elements, total contract consideration is attributed to separately identifiable components on a reliable basis that reasonably reflects the selling prices that might be expected to be achieved in stand-alone transactions provided that each component has value to the partner on a stand-alone basis. The allocated consideration is recognized as revenue in accordance with the principles described above.
Production costs consist of costs incurred in gener-ating the revenue for the year. Costs for raw materials, consumables, production staff and a proportion of production overheads, including maintenance, amorti-zation, depreciation and impairment of intangible and tangible assets used in production as well as operation,
administration and management of the production facility are recognized as production costs. Amortization of acquired product rights are recognized as production costs. In addition, the costs related to idle capacity and write-down to net realisable value of goods on stock are recognized.
Accounting policies
Sales and distribution costs comprise costs incurred for the sale and distribution of products sold during the year. This includes costs incurred for sales campaigns, training and administration of the sales force and for direct distribution, marketing and promotion. Also included are salaries and other costs for the sales, distribution and marketing functions, loss allowance for expected credit losses, amortization, depreciation and other indirect costs.
Accounting policies
Research and development costs include salaries and costs directly attributable to the Group\u2019s research and development projects, less government grants. Further-more, salaries and costs supporting direct research and development, including costs of patents, rent, leasing and depreciation attributable to laboratories, and external scientific consultancy services, are recognized under research and development costs. No indirect or general overhead costs that are not directly attributable to research and development activities are included in the disclosure of research and development expenses recognized in the income statement.
Research costs are expensed in the year they occur.
Development costs are generally expensed in the year they occur. In line with industry custom, capitaliza-tion of development costs does not begin until it is deemed realistic that the product can be completed
and marketed and it is highly likely that a marketing authorization will be received. In addition, there must be sufficient certainty that the future earnings to the Group will cover not only production costs, direct distri-bution and administrative costs, but also the develop-ment costs.
Contract research and development costs incurred to achieve revenue are included in \"Research and devel-opment costs incurred this year\" in the table and then transferred under \"Contract costs recognized as produc-tion costs\" to be recognized as production costs.
Grants that compensate the Group for research and development expenses incurred, which are recognized directly in the income statement, are set off against the costs of research and development at the time when a final and binding right to the grant has been obtained.
Accounting policies
Administrative costs include costs of Group Manage-ment, staff functions, administrative personnel, office costs, rent, short-term lease payments and depreciation not relating specifically to production, research and development or sales and distribution.
Interest income is recognized in the income state-ment at the amounts relating to the financial year. Financial income also includes net positive value adjustments of financial instruments and securities, and net currency gains.
Accounting policiesInterest expenses are recognized in the income statement at the amounts relating to the financial year. Financial expenses also include adjustment of net present value of the deferred consideration, cf. note 24, negative value adjustments of financial instruments and securities and net currency losses.
Accounting policies
Income tax for the year comprises current tax and deferred tax for the year. The part relating to the profit for the year is recognized in the income statement, and the part attributable to items in the comprehensive income is recognized in the comprehensive income statement.
The tax effect of costs that have been recognized directly in equity is recognized in equity under the rele-vant items.
Any global minimum top-up tax, which is required to be paid under Pillar II legislation, is determined as an income tax in the scope of IAS 12. The Group has applied the temporary mandatory exception from deferred tax accounting for the impacts of any top-up tax and will account for it as a current tax when it incurs.
Current tax receivable is recognized in the balance sheet under current asset. Current tax payable is recog-nized in the balance sheet under current liabilities.
Deferred tax is measured using the balance sheet liability method on all temporary differences between accounting values and tax values. Deferred tax liabili-ties arising from temporary tax differences are recog-nized in the balance sheet as a liability.
Deferred tax assets arising from temporary deductible differences and tax losses carried forward are recog-nized when it is probable that they can be realized by offsetting them against taxable temporary differences or future taxable profits. At each balance sheet date, it is assessed whether it is probable that there will be sufficient future taxable income for the deferred tax asset to be utilized.
Changes in deferred tax concerning expenses for share-based payments are generally recognized in Statement of profit or loss. However, if the amount of the tax deduction exceeds the related cumulative expense, it indicates that the tax deduction relates not only to an operating expense but also to an equity item. In such a case, the excess of the associated current or deferred tax is recognized directly in equity.
Deferred income tax is provided on temporary taxable differences arising on investments in subsidiaries, unless the parent company is able to control the timing when the deferred tax is to be realized and it is likely that the deferred tax will not be realized within the foreseeable future.
Deferred tax is calculated at the tax rates applicable on the balance sheet date for the income years in which the tax asset is expected to be utilized.
Earnings per share is calculated as the profit or loss for the year compared to the weighted average of the issued shares in the financial year. The basis for the
calculation of diluted earnings per share is the weight-ed-average number of ordinary shares in the financial year adjusted for the dilutive effects of warrants.
Accounting policies
Intangible assets are measured at historic cost less accumulated amortization and impairment losses. Cost of acquired product rights are measured at cash consid-eration and present value of any deferred payments for those rights. Furthermore costs of acquired product rights include transaction costs that are directly attrib-utable to the acqusition. Internal development projects that meet the requirements for recognition as intan-gible assets are measured at direct cost relating to the development projects
Amortization is provided on a straight-line basis over the useful economic lives of the assets.
The useful lives of acquired product rights are esti-mated to be 10-20 years and software is estimated to be 3-5 years.
Amortization of acquired product rights is recognized as part of cost of goods sold under production costs.
Impairment
The carrying amounts of intangible assets carried at cost or amortized cost are tested at least annually to determine whether there are indications of any impair-ment in excess of that expressed in normal amortiza-tion. If that is the case, the asset is written down to the recoverable amount, which is the higher of its fair value less costs to sell and its value in use. Impairment losses on intangible assets are recognized under the same line item as amortization of the assets.
For development projects in progress, the recoverable amount is assessed annually, regardless of whether any indications of impairment have been found.
Accounting policies
Property, plant and equipment include land and build-ings, production equipment, leasehold improvements, office and IT equipment and laboratory equipment and is measured at cost less accumulated depreciation and impairment losses.
Cost includes the costs directly attributable to the purchase of the asset, until the asset is ready for use. For assets constructed by the Group cost includes mate-rials, components, third-party suppliers and labor.
Borrowing costs directly attributable to the construction of property, plant and equipment are included in cost. Other borrowing costs are recognized in the income statement.
Depreciation is charged over the expected economic lives of the assets, and the depreciation methods, expected lives and residual values are reassessed indi-vidually for the assets at the end of each financial year. Assets are depreciated on a straightline basis over their estimated useful lives as follows:
Buildings10-20 yearsInstallations5-15 yearsLeasehold improvements5 yearsOffice and IT equipment3-5 yearsLaboratory equipment5-10 yearsProduction equipment3-15 years
Management reviews the estimated useful lives of material property, plant and equipment at the end of each financial year.
Impairment
The carrying amounts of property, plant and equipment carried at cost or amortized cost are tested annually to determine whether there are indications of any impair-ment in excess of that expressed in normal deprecia-tion. If that is the case, the asset is written down to the recoverable amount, which is the higher of its fair value less costs to sell and its value in use. Impairment losses on property, plant and equipment are recognized under the same line item as depreciation of the assets.
Accounting policies
The right-of-use assets comprise the initial measure-ment of the corresponding lease liability. Right-of-use assets are subsequently measured at cost less accumu-lated depreciation and impairment losses.
All operating leases with a lease term of more than 12 months are recognized on the balance sheet as right-of-use-assets.
For leases with a lease term of less than 12 months the lease payments are recognized as an operating expense on a straight-line basis over the term of the lease.
The right-of-use assets are measured at the present value of all future lease payments. When assessing the lease term, any extension or termination options are included in the assessment. The options are included in determining the lease term, if exercise is reason-ably certain. When determining the discount rates used to calculate the net present value of future lease payments, an incremental country specific borrowing rate is used, based on a government bond plus the Group\u2019s credit margin, ranging from 4.8% to 6.93%. A single discount rate is used for a portfolio of lease assets with reasonable similar characteristics. Initial direct costs are not included in measurement of the right-of-use assets. Non-lease components are not separated from lease components.
A maturity analysis for lease payments is described in note 22. Impact from change in lease terms, lease payments or modification of the lease contract is further described in note 27.
Right-of-use assets are depreciated over the shorter period of lease term and useful life of the underlying asset. The depreciation starts at the commencement date of the lease. IAS 36 is applied to determine whether a right-of-use asset is impaired and any iden-tified impariment losses are accounted for as described in note 15.
Inventories are measured at the lower of cost less write-downs and net realisable value. The net realis-able value is the estimated sales price in the ordinary course of business less relevant sales costs deter-mined on the basis of marketability, obsolescence and changes in the expected sales price.
Raw materials are measured at cost based on the FIFO method. For raw materials, cost is determined as direct acquisition costs incurred.
The cost of work in progress and finished goods produced in-house are measured at standard cost and includes raw materials, consumables, external manu-facturing services and direct payroll costs plus allocated indirect costs of production (production overheads).
Indirect costs of production include indirect materials and labor as well as maintenance of and depreciation on the machinery used in production processes, factory buildings and equipment used and cost of production administration and management.
Accounting policiesReceivables are measured at initial recognition at fair value and subsequently at amortized value usually equal to the nominal value, net of impairment based on expected credit losses.
Loss allowance is calculated using the \u2018full lifetime expected credit losses\u2019 method, whereby the likelihood of non-fulfilment throughout the lifetime of the finan-cial instrument is taken into consideration. A provision account is used for this purpose.
Accounting policiesReceivables are measured at initial recognition at fair value and subsequently at amortized value usually equal to the nominal value, net of impairment, to
counter the loss after an individual assessment of risk of loss. Derivative financial instruments are measured at fair value.
Accounting policiesPrepayments recognized under assets include costs paid in respect of subsequent financial years, including incurred costs related to technology transfer activities at CMO's, where the costs subsequently will be recog-
nized as inventory in concurrence with purchase of production services from the CMO's. Prepayments are measured at cost.
Accounting policiesDerivative financial instruments are measured at fair value.
Other financial liabilities are measured at initial recognition at fair value less any transaction costs. Subsequent other financial liabilities are measured at
amortized cost using the effective interest method, whereby the difference between proceeds and the nominal value is recognized in the income statement as a financial expense over the period. Amortized cost usually equal to the nominal value.
Accounting policies
Derivative financial instruments
On initial recognition, derivative financial instruments are measured at the fair value on the settlement date.
Directly attributable costs related to the purchase or issuance of the individual financial instruments (transaction costs) are added to the fair value on initial recognition, unless the financial asset or the financial liability is measured at fair value with recognition of fair value adjustments in the income statement. Subse-quently, they are measured at fair value at the balance sheet date based on the official exchange rates, market interest rates and other market data such as volatility adjusted for the special characteristics of each instru-ment.
The Company has designated certain derivative finan-cial instruments as cash flow hedges as defined under IFRS 9 \"Financial Instruments\". Hedge accounting is classified as a cash flow hedge when the hedges of a particular risk is associated with the cash flows of highly probable forecast transactions.
Changes in the fair value of derivative financial instru-ments designated as and qualifying for recognition as effective hedges of future transactions (cash flow
hedges) are recognized in other comprehensive income. The ineffective portion is recognized immediately in the income statement. When the hedged transactions are realized, cumulative changes are recognized in the income statement together with the hedged transac-tion or in respect of a non-financial item as part of the cost of the transactions in question.
For derivative financial instruments that do not qualify for hedge accounting, changes in fair value are recog-nized as financials in the income statement as they occur.
Securities
Securities consist of highly liquid, listed bonds with high credit rating, which are measured at fair value on initial recognition and as of the balance sheet date. The Group\u2019s portfolio of securities is treated as \"financial items at fair value through profit or loss\", as the port-folio is accounted for and valued on the basis of the fair value in compliance with the Company's investment policy.
Both realized and unrealized value adjustments are recognized in the income statement under financials.
Deferred consideration including contingent milestone payments is recognized when its payment is probable and it can be measured reliably and is at initial recog-nition measured at fair value which equals present value of future deferred payments. Subsequently, the deferred consideration is measured at amortized cost. This means that the difference between the present value of the consideration and the nominal amounts
due is recognized in the income statement as a finan-cial expense over the period until expected payment date using the effective interest method.
The expected phasing of future payments and the probability of contingent payments are assessed on each reporting date and the impact is recognized as a financial item.
Accounting policiesLoans are measured at the time of borrowing at fair value less any transaction costs. Subsequently, debt is measured at amortized cost. This means that the differ-ence between the proceeds of the loan and the amount
to be repaid is recognized in the income statement over the term of the loan as a financial expense using the effective interest method.
Accounting policies
In defined contribution plans, the Group makes regular payments of fixed contributions to independent pension funds and insurance companies. The Group is under no obligation to pay additional contributions. Costs for defined contribution plans are recognized in the income statement as the Group assumes an obliga-tion to make the payment.
In defined benefit plans, the Group is under an obliga-tion to pay a defined benefit on retirement. The actuar-ially calculated present value less the fair value of any plan assets is recognized in the balance sheet under retirement benefit obligations. The total service costs of the year plus calculated interest based on actuarial estimates and financial assumptions at the beginning of the year are recognized in the income statement. The difference between the forecast development in plan assets and liabilities and the realized values at the end of the year is called actuarial gains or losses and is recognized in other comprehensive income. In connection with a change in benefits regarding the employees\u2019 employment with the Group to date, there will be a change in the actuarial calculation of the net present value, which is taken directly to the income statement.
Defined contribution plans
The Group offers pension plans to all employees in Denmark and abroad. Most of the pension plans are defined contribution plans, expect for the pension plan in Bavarian Nordic Berna GmbH, see below. The Group funds the plans through regular payments of premiums to independent insurance companies responsible for the pension obligations towards the beneficiaries. Once the pension contributions for defined contribution plans have been made, the Group has no further obligation towards current or former employees. Contributions to defined contribution plans are recognized in the income statement when paid.
Defined benefit plans
The pension plan in Bavarian Nordic Berna GmbH is part of a collective foundation in which other plans of non-related employers also participate, and the different plans all participate in the various risks relating to the foundation.
Defined benefit liabilities are recognized in the balance sheet and in the income statement as indicated below.
Employees from Bavarian Nordic Switzerland AG was transferred to Bavarian Nordic Berna GmbH in August 2024 and were included in the pension plan as from December 31, 2024. The previous pension plan in Bavarian Nordic Switzerland AG was recognized as a contribution benefit plan and therefore no pension obligation was recognized. The net assets under the Bavarian Nordic Berna GmbH pension plan were adjusted in 2024 to include the transferred employees.
Accounting policies
The lease liability is initially measured at the present value of the future lease payments (see further in note 17), discounted by using an incremental country specific borrowing rate ranging from 4.8% to 6.93% applying only a single discount rate for a portfolio of lease assets with reasonable similar characteristics.
The lease liability is subsequently measured by increasing the carrying amount to reflect interest on the lease liability using the effective interest method and by reducing the carrying amount to reflect the lease payments made.
The lease liability is remeasured and corresponding adjustments are made to the related right-of-use-asset whenever:
The lease term has changed, in which case the lease liability is remeasured by discounting the revised lease payments using a revised discount rate.
The lease payments change due to changes in an index or rate, in which case the lease liability is remeasured by discounting the revised lease payments using an unchanged discount rate.
A lease contract is modified and the lease modifica-tion is not accounted for as a separate lease, in which case the lease liability is remeasured based on the lease term of the modified lease by discounting the revised lease payments using a revised discount rate at the effective date of the modification.
Prepayments are recognized under liabilities and will be recognized in the income statement as the delivery of paid products takes place.
Accounting policies
Share-based incentive plans in which employees can only opt to buy shares in the Company (warrants) are measured at the equity instruments\u2019 fair value at the grant date and recognized in the income statement over the three-year vesting period. The balancing item is recognized directly in equity. The fair value on the date of grant is determined using the Black-Scholes model.
Restricted stock units and performance restricted stock units are measured at fair value at grant date.
For Executive Management cash bonus converted to restricted stock units, the number of restricted stock units are calculated by dividing the allocated cash bonus amount by the share price of the Company at grant date. As the cash bonus has already been accrued and expensed in the income statement, the grant of restricted stock units has no additional impact on the income statement. The accrued liability for the converted cash bonus is reclassified to equity. Matching shares are measured at the same fair value as the initial restricted stock units and expensed over the three year vesting period. The balancing item is recog-nized directly in equity.
Performance restricted stock units granted to Execu-tive Management as part of their long-term incentive scheme are expensed over the three-year vesting period with the balancing item recognized directly in equity. Vesting is subject to achievement of certain Key Performance Indicators (\u201cKPIs\u201d) as determined by the
Board of Directors. Achievements of KPI's is assessed annually and costs related to not awarded warrants are reversed.
Restricted stock units granted as sign-on bonus for members of the Executive Management and restricted stock units granted to the Board of Directors are expensed at grant date with the balancing item recog-nized directly in equity.
Incentive plans
In order to motivate and retain key employees and encourage the achievement of common goals for employees, management and shareholders, the Company has established incentive plans by way of warrant programs and restricted stock units programs, the latter only for members of the Executive Manage-ment and Board of Directors.
Warrants
The Board of Directors has been granting warrants to the Company\u00b4s management and selected employees of the Company and its subsidiaries.
The warrants are granted in accordance with the authorizations given to the Board of Directors by the shareholders. The Board of Directors has fixed the terms of and the size of the grants of warrants, taking into account authorizations from the shareholders, the Group's guidelines for incentive pay, an assessment of expectations of the recipient\u00b4s work efforts and contri-bution to the Group\u00b4s growth, as well as the need to
motivate and retain the recipient. Grant takes place on the date of establishment of the program. Exercise of warrants is by default subject to continuing employ-ment with the Group. The warrants granted are subject to the provisions of the Danish Public Companies Act regarding termination of employees prior to their exercise of warrants in the case of recipients who are subject to the act.
For warrants granted to Executive Management in December 2022 and onwards, vesting is subject to achievement of certain Key Performance Indicators (\u201cKPIs\u201d) as determined by the Board of Directors. Number of granted warrants are adjusted on an annual basis based on performance. The recognized costs are adjusted accordingly. Executive Management was not granted warrants in 2025.
Basis of preparation
The consolidated financial statements for Bavarian Nordic have been prepared in accordance with the IFRS Accounting Standards class D as adopted by the EU and Danish disclosure requirements for the consolidated financial statements of listed companies. Danish disclo-sure requirements for the presentation of consolidated financial statements are imposed by the Statutory Order on Adoption of the IFRS Accounting Standards issued under the Danish Financial Statements Act.
The accounting policies are unchanged from last year except for changes due to implementation of new and revised standards that were effective January 1, 2025.
The consolidated financial statements are presented in Danish kroner (DKK), which is the functional currency of the Parent Company.
The consolidated financial statements are presented on a historical cost basis, apart from derivative financial instruments and securities, which are measured at fair value.
The accounting policies have been consistently applied for the financial year and for the comparative figures except for implementation of new standards and amendments, see further below.
In the narrative sections of the consolidated financial statements comparative figures for 2024 are shown in brackets.
", "dimensions": { "concept": "ifrs-full:DisclosureOfBasisOfPreparationOfFinancialStatementsExplanatory", "language": "en", "entity": "scheme:2138006JCDVYIN6INP51", "period": "2025-01-01T00:00:00/2026-01-01T00:00:00" } }, "f0__s8__7__121": { "value": "Basis of preparation
The consolidated financial statements for Bavarian Nordic have been prepared in accordance with the IFRS Accounting Standards class D as adopted by the EU and Danish disclosure requirements for the consolidated financial statements of listed companies. Danish disclo-sure requirements for the presentation of consolidated financial statements are imposed by the Statutory Order on Adoption of the IFRS Accounting Standards issued under the Danish Financial Statements Act.
The accounting policies are unchanged from last year except for changes due to implementation of new and revised standards that were effective January 1, 2025.
The consolidated financial statements are presented in Danish kroner (DKK), which is the functional currency of the Parent Company.
The consolidated financial statements are presented on a historical cost basis, apart from derivative financial instruments and securities, which are measured at fair value.
The accounting policies have been consistently applied for the financial year and for the comparative figures except for implementation of new standards and amendments, see further below.
In the narrative sections of the consolidated financial statements comparative figures for 2024 are shown in brackets.
", "dimensions": { "concept": "ifrs-full:StatementOfIFRSCompliance", "language": "en", "entity": "scheme:2138006JCDVYIN6INP51", "period": "2025-01-01T00:00:00/2026-01-01T00:00:00" } }, "f0__s8__7__122": { "value": "The consolidated financial statements are presented in Danish kroner (DKK), which is the functional currency of the Parent Company.", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForFunctionalCurrencyExplanatory", "language": "en", "entity": "scheme:2138006JCDVYIN6INP51", "period": "2025-01-01T00:00:00/2026-01-01T00:00:00" } }, "f0__s8__7__123": { "value": "Implementation of new and revised standards and interpretations
Management has assessed the impact of new or amended and revised accounting standards and inter-pretations issued by the IASB and the IFRS Accounting Standards endorsed by the European Union effective on or after January 1, 2025. It is assessed that application of amendments effective from January 1, 2025 has not had a material impact on the consolidated financial statements for 2025. Furthermore, Management does not anticipate any significant impact on future periods from the adoption of these amendments.
", "dimensions": { "concept": "ifrs-full:DisclosureOfChangesInAccountingPoliciesExplanatory", "language": "en", "entity": "scheme:2138006JCDVYIN6INP51", "period": "2025-01-01T00:00:00/2026-01-01T00:00:00" } }, "f0__s8__7__124": { "value": "Basis of consolidation
The consolidated financial statements include Bavarian Nordic A/S and the subsidiaries in which the Group holds more than 50% of the voting rights or otherwise has control.
Principles of consolidation
The consolidated financial statements are prepared on the basis of the financial statements of the Parent Company and the individual subsidiaries, and these are prepared in accordance with the Group\u2019s accounting policies and for the same accounting period.
Intra-group income and expenses together with all intra-group profits, receivables and payables are eliminated on consolidation. In the preparation of the consolidated financial statements, the book value of shares in subsidiaries held by the Parent Company is set off against the equity of the subsidiaries.
", "dimensions": { "concept": "ifrs-full:DisclosureOfBasisOfConsolidationExplanatory", "language": "en", "entity": "scheme:2138006JCDVYIN6INP51", "period": "2025-01-01T00:00:00/2026-01-01T00:00:00" } }, "f0__s8__7__125": { "value": "Foreign currency translation
On initial recognition, transactions denominated in currencies other than the Group\u2019s functional currency are translated at the exchange rate ruling at the trans-action date.
Receivables, payables and other monetary items denominated in foreign currencies that have not been
settled at the balance sheet date are translated at the exchange rates at the balance sheet date.
Exchange differences between the exchange rate at the date of the transaction and the exchange rate at the date of payment or the balance sheet date, respec-tively, are recognized in the income statement under financials. Property, plant and equipment and intan-gible assets, inventories and other nonmonetary assets acquired in foreign currency and measured based on historical cost are translated at the exchange rates at the transaction date.
On recognition in the consolidated financial state-ments of subsidiaries whose financial statements are presented in a functional currency other than Danish kroner (DKK), the income statements are translated at the average exchange rates of the respective months.
Balance sheet items are translated at the exchange rates at the balance sheet date. Exchange differences arising on the translation of foreign subsidiaries\u2019 opening balance sheet items to the exchange rates at the balance sheet date and on the translation of the income statements from average exchange rates of the respective months to exchange rates at the balance sheet date are recognized as other comprehensive income.
", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForForeignCurrencyTranslationExplanatory", "language": "en", "entity": "scheme:2138006JCDVYIN6INP51", "period": "2025-01-01T00:00:00/2026-01-01T00:00:00" } }, "f0__s8__7__126": { "value": "Segment reporting
The Group does not prepare segment reporting inter-nally and therefore only reports one operating segment externally.
Geographic spilt of revenue and revenue from major customers is disclosed in note 3 to the consolidated financial statements. Geographic location of non-cur-rent assets is disclosed in note 15 and 16 to the consoli-dated financial statements.
", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForSegmentReportingExplanatory", "language": "en", "entity": "scheme:2138006JCDVYIN6INP51", "period": "2025-01-01T00:00:00/2026-01-01T00:00:00" } }, "f0__s8__7__127": { "value": "Cash flow statement
The cash flow statement is prepared in accordance with the indirect method on the basis of the Group\u2019s net result for the year. The statement shows the Group\u2019s cash flows broken down into operating, investing and financing activities, cash and cash equivalents at year end and the impact of the calculated cash flows on the Group\u2019s cash and cash equivalents.
Cash flows in foreign currencies are translated into Danish kroner (DKK) at the exchange rate on the trans-action date.
In the cash flows from operating activities, net profit for the year is adjusted for non-cash operating items and changes in working capital.
Cash flows from investing activities include cash flows from the purchase and sale of intangible assets, prop-erty, plant and equipment, investments and securities.
Cash flows from financing activities include cash flows from the raising and payment of loans and capital increases.
Additionally, cash flows from assets held under finance leases are recognized by way of lease payments made.
", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForCashFlowsExplanatory", "language": "en", "entity": "scheme:2138006JCDVYIN6INP51", "period": "2025-01-01T00:00:00/2026-01-01T00:00:00" } }, "f0__s8__7__128": { "value": "Net asset value per share:
Equity
Number of shares at year-end
Share price/Net asset value per share:
Market price per share
Net asset value per share
Equity share, %:
Equity x 100
Total assets
Earnings per share and diluted earnings per share are calculated in accordance with IAS 33 \u201cEarnings per share\u201d and specified in note 14.
", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForEarningsPerShareExplanatory", "language": "en", "entity": "scheme:2138006JCDVYIN6INP51", "period": "2025-01-01T00:00:00/2026-01-01T00:00:00" } }, "f0__s8__7__129-1": { "value": "Note 2
Key accounting estimates and judgments
Key accounting estimates
In the preparation of the consolidated financial state-ments, Management makes a number of accounting estimates and judgments, which form the basis for the presentation, recognition and measurement of the Group's assets and liabilities.
The recognition and measurement of assets and liabil-ities often depend on future events that are somewhat uncertain. In that connection, it is necessary to assume a course of events that reflects Management\u2019s assess-ment of the most probable course of events. The key accounting estimates and judgments identified are those that have a significant risk of resulting in a material adjustment to the measurement of assets and liabilities in the following reporting period. Manage-ment bases its estimates and judgments on historical experience and various other assumptions that are held to be reasonable under the circumstances. The underlying assumptions are reviewed on an ongoing
basis. If necessary, changes are recognized in the period in which the estimate and judgment are revised. Management considers the key accounting estimates and judgments to be reasonable and appropriate based on currently available information. The actual amounts may differ as more detailed information becomes available.
Management has assessed the qualitative and quan-titative impact of climate-related matters, geopolitical risks including US tariffs and reference pricing, and other uncertainties. It is Management\u2019s assessment that, based on the current facts, these uncertainties do not significantly impact estimates and assumptionsManagement has made the following accounting estimates and judgments which significantly affect the amounts recognized in the consolidated financial statements:
Accounting policy | Key accounting estimates and judgments | Note |
Revenue | Estimate of US sales deductions and provisions for sales rebates | 3 |
Intangible assets | ||
Estimate regarding impairment of assets; judgment whether future sales and development milestones have become probable; judgment whether develop-ment costs should be expensed or capitalized | 15 | |
Inventories | Estimate of indirect production costs capitalized and inventory write-down | 18 |
Key accounting estimates
Provisions for sales deductions
Sales discounts and rebates are predominantly issued in the US in connection with the US Federal and State Government Healthcare programs, namely Medicare and Medicaid, and commercial rebates.
The estimate of sales discounts and rebates is based on a calculation which includes a combination of historical utilization data, combined with expectations in relation to the development in sales and utilization. Further-more, specific circumstances regarding the different programs are considered. The obligations concerning sales discounts and rebates are incurred at the time the sale is recorded. However, the actual discount or rebate related to a specific sale may be invoiced later.
Bavarian Nordic considers the provisions established for sales discounts and rebates to be reasonable and appropriate based on currently available information. However, the actual amount of discounts and rebates may differ from the amounts estimated as more detailed information becomes available.
Partner contracts
Whether a component of a multiple element contract has value to the partner on a stand-alone basis is based on an assessment of specific facts and circumstances and is associated with judgement. This applies also to the assessment of whether a license transfers rights associated with ownership of an intangible asset. Furthermore, allocation of the total consideration of a contract to separately identifiable components requires considerable estimates and judgement to be made by Management. At inception and throughout the life of a contract Management is performing an analysis of the agreement with its partners based on available facts and circumstances at each assessment date such as historical experience and knowledge from the market to the extent obtainable. This includes also an understanding of the purpose of the deliverables under the contract and the negotiation taken place prior to concluding the contract.
Key accounting estimates
Product rights
When determining the amortization period for acquired product rights, Management need to make an assessment of expected useful economic life. In the assessment Management take among other things the following components into consideration: The maturity of the products acquired, development in the market the acquired products are targeting, the current competitors, clinical development of new competing products and entry barriers to the market due to advanced production technology. Straight-line amortization reflects the use and impairment of the product rights.
Management continuously updates the valuation model used when acquiring the product rights from GSK and Emergent BioSolutions to assess the value creation expected from the acquisitions. The valuation are based on latest budgets and forecasts and assessment of useful life, taking into consideration e.g. market share, competitors, improvements in production efficiency. The latest update of the valuation models show values above the net present value of the purchase prices, hence there is no indications of impairment.
Key accounting judgments
Management has made the following accounting judg-ments which significantly affect the amounts recog-nized in the consolidated financial statements:
Acquired rights and development in progress
Under the Group\u2019s accounting policies and in accordance with common industry practice, development costs are generally expensed in the year they occur. This approach is taken due to the uncertainty surrounding the future benefits of these costs until commercial approval is obtained.
Product rights
December 31, 2019 the Company acquired the product rights to two commercial products owned by GSK - Rabipur/RabAvert and Encepur.
The products have been on the market for more than 20 years. There is no need to further develop the prod-ucts. Management assesses that it will require up to 10 years of clinical development for competitors to bring a new competing product to the market likewise the production process required to produce these products is highly complex. Based on these factors Management assesses that the acquired product rights should be amortized over 20 years.
In June 2024, based on higher-than-expected sales of Rabipur and Encepur during the second quarter of 2024, Management assessed it likely that Bavarian Nordic would reach the trigger for the sales milestone included in the Asset Purchase Agreement concluded in 2019 and this was finally confirmed by end of July 2024. The sales milestone of DKK 186 million was recognized as an addition to the product rights and the deferred consideration in 2024.
In May 2023, the Company concluded a Purchase and Sale Agreement with Emergent BioSolutions. The agreement included acquisition of product rights to two commercial travel vaccines - Vivotif and Vaxchora.
Vivotif and Vaxchora were first licensed in the US in 1989 and 2016 respectively. Vaccines have historically shown to have a long lifespan due to stringent regu-latory requirements, high research and development
costs and a complex manufacturing process. Vaxchora is targeting a market that has a relatively low market value, which further lowers the chance of competitors entering the market and taking significant market shares. Based on these factors Management assesses that the Vaxchora product right should be amortized over 20 years.
Vivotif was developed more than 30 years ago and the market is larger than for Vaxchora. Therefore, the risk of competition is also deemed higher, hence the amorti-zation period is assessed to be 10 years.
The acquisition price for the two product rights consists of an upfront payment of DKK 312 million for Vivotif and DKK 137 million for Vaxchora.
The Purchase and Sale Agreement also includes an earnout payment starting at USD 30 million. The earnout payment relates to sale of Vivotif and Vaxchora. As per December 31, 2025 Management does not judge the sales milestone to be probable and there-fore the earnout payment has not been recognized as either part of the project rights nor the deferred consid-eration.
Acquired rights and development in progress
The Purchase and Sale Agreement concluded with Emergent BioSolutions included acquisition of a late-stage vaccine candidate for Chikungunya virus. The initial acquisition price amounted to DKK 788 million. No further cost will be capitalized.
The agreement with Emergent BioSolutions also included milestone payments totaling USD 80 million related to submission and approval of Biologics License Application (BLA) to FDA and Marketing Authorization Application to EMA for the chikungunya development asset.
At initial recognition the net present value of probable future development milestone payments to Emergent BioSolutions Inc. amounted to DKK 499 million and was recognized as deferred consideration (note 24).
Developed production processes
Developed production processes consist of the the as-is technology transfer from GSK to Bavarian Nordic of the manufacturing process for Rabipur/RabAvert and Encepur. The Company has incurred material costs in terms of internal labor and consultancy to handle the technology transfer and has gained crucial knowledge about the manufacturing process. These costs are capitalized as an intangible asset. As per December 31, 2025 the capitalized costs amounts to DKK 306 million (DKK 345 million).
Significant accounting estimatesProduction overheads are measured on the basis of actual costs. The basis of the actual costs is reassessed regularly to ensure that they are adjusted for changes in the utilization of production capacity, production changes and other relevant factors. Biological living material is used, and the measurements and assump-tions for the estimates made may be incomplete or inaccurate, and unexpected events or circumstances may occur, which may cause the actual outcomes to later deviate from these estimates. It may be necessary to change previous estimates as a result of changes in the assumptions on which the estimates were based or due to new information or subsequent events, for which certainty could not be achieved in the earlier estimates.
Estimates that are material to the financial reporting are made in the determination of any write-down due to impairment of inventories as a result of unreleased products, expiry of products and sales risk.
", "dimensions": { "concept": "ifrs-full:DisclosureOfAccountingJudgementsAndEstimatesExplanatory", "language": "en", "entity": "scheme:2138006JCDVYIN6INP51", "period": "2025-01-01T00:00:00/2026-01-01T00:00:00" } }, "f0__s8__7__130-1": { "value": "Note 3
Revenue
Key accounting estimates
Provisions for sales deductions
Sales discounts and rebates are predominantly issued in the US in connection with the US Federal and State Government Healthcare programs, namely Medicare and Medicaid, and commercial rebates.
The estimate of sales discounts and rebates is based on a calculation which includes a combination of historical utilization data, combined with expectations in relation to the development in sales and utilization. Further-more, specific circumstances regarding the different programs are considered. The obligations concerning sales discounts and rebates are incurred at the time the sale is recorded. However, the actual discount or rebate related to a specific sale may be invoiced later.
Bavarian Nordic considers the provisions established for sales discounts and rebates to be reasonable and appropriate based on currently available information. However, the actual amount of discounts and rebates may differ from the amounts estimated as more detailed information becomes available.
Partner contracts
Whether a component of a multiple element contract has value to the partner on a stand-alone basis is based on an assessment of specific facts and circumstances and is associated with judgement. This applies also to the assessment of whether a license transfers rights associated with ownership of an intangible asset. Furthermore, allocation of the total consideration of a contract to separately identifiable components requires considerable estimates and judgement to be made by Management. At inception and throughout the life of a contract Management is performing an analysis of the agreement with its partners based on available facts and circumstances at each assessment date such as historical experience and knowledge from the market to the extent obtainable. This includes also an understanding of the purpose of the deliverables under the contract and the negotiation taken place prior to concluding the contract.
DKK thousand | 2025 | 2024 |
Travel health | ||
Rabipur/RabAvert | 1,816,707 | 1,352,461 |
Encepur | 598,071 | 497,130 |
Vivotif | 198,361 | 179,212 |
Vaxchora | 37,880 | 64,153 |
Vimkunya | 84,565 | - |
Other product sale | 227,883 | 193,629 |
2,963,467 | 2,286,585 | |
Public preparedness | ||
Mpox/smallpox vaccine sale | 3,104,974 | 3,206,186 |
Sale of goods | 6,068,441 | 5,492,771 |
Contract work | 175,515 | 223,435 |
Sale of services | 175,515 | 223,435 |
Revenue | 6,243,956 | 5,716,206 |
Total revenue includes: | ||
Fair value adjustment concerning financial instruments entered into to hedge revenue | 72,931 | 5,486 |
Other product sale consists of the following:
\u2022\tSale of Dukoral and Ixiaro licensed from Valneva
\u2022\tSale of Heplisav licensed from Dynavax
DKK thousand | 2025 | 2024 |
Geographic split of revenue: | ||
USA | 2,697,034 | 2,702,900 |
Germany | 1,159,979 | 972,759 |
France | 723,946 | 268,766 |
Canada | 223,461 | 493,208 |
England | 213,589 | 98,639 |
Finland | 182,509 | 98,467 |
Singapore | 137,977 | 124,649 |
Switzerland | 108,325 | 52,591 |
Australia | 80,309 | 17,102 |
Saudi Arabia | 72,595 | 265,730 |
Spain | 35,361 | 54,734 |
Italy | 35,024 | 26,378 |
Austria | 25,314 | 29,217 |
Japan | 29,580 | 38,171 |
Other geographic markets | 518,953 | 472,895 |
Revenue | 6,243,956 | 5,716,206 |
In 2025 revenue achieved on the Danish market amounted to DKK 5 million (DKK 28 million).
In 2025 the following customers represented more than 10% of total revenue:
Biomedical Advanced Research and Development Authority (BARDA), USA, DKK 1,102 million.
Agence nationale de sant\u00e9 publique FR, France, DKK 715 million.
In 2024 the following customers represented more than 10% of total revenue:
Biomedical Advanced Research and Development Authority (BARDA), USA, DKK 1,329 million.
Accounting for contract with Biomedical Advanced Research and Development Authority (BARDA)
When drug substance batches are invoiced to BARDA the batches remain in the Company's physical posses-sion until filling as final product. The filling takes place either at the Company's facility in Kvistgaard or at CMO's (a bill-and-hold arrangement). Revenue is recognized once the batches are releasable according to contract with BARDA.
Payment is due within 30 days after invoicing.
Accounting policies
Sale of goods
Revenue from sale of goods is recognized when Bavarian Nordic has transferred control of products sold to the buyer and it is probable that Bavarian Nordic will collect the consideration to which it is entitled for transferring the products. Control of the products is transferred at a point in time, typically on delivery. The amount of sales to be recognized is based on the consideration Bavarian Nordic expects to receive in exchange for its goods. When sales are recognized, Bavarian Nordic also records estimates for a variety of sales deductions, including product returns as well as rebates and discounts to government agencies, wholesalers, health insurance companies, managed healthcare organizations and retail customers. These sales deductions are recognized as \"Gross to net deduc-tion\" under other liabilities. Revenue is measured net of value added tax, duties, etc. collected on behalf of a third party.
Where contracts contain customer acceptance criteria, Bavarian Nordic recognizes sales when the acceptance criteria are satisfied.
The pricing mechanisms in the US market and the different kind of rebates are described below.
Pricing mechanisms in the US market
In the US, sales rebates are paid in connection with government and commercial programs. Key customers in the US include private payers, Group Purchasing Organizations (GPOs) and government payers. GPOs play a role in negotiating price concessions with drug
manufacturers for the commercial channels, and deter-mine which drugs are offered as preferred options on their drug lists.
US Medicaid & Medicare rebates
Medicaid & Medicare are government insurance programs. Medicaid and Medicare rebates have been estimated using a combination of historical experience, product and population growth, price increases, and the impact of contracting strategies. The calculation also involves interpretation of relevant regulations that are subject to changes in interpretative guidance from government authorities. Bavarian Nordic adjusts the provision periodically to reflect actual sales perfor-mance.
Wholesaler charge-backs
Wholesaler charge-backs relate to contractual arrange-ments between Bavarian Nordic and indirect customers whereby products are sold at contract prices lower than the list price originally charged to wholesalers. A wholesaler charge-back represents the difference between the invoice price to the wholesaler and the indirect customer\u2019s contract price. Accruals are calcu-lated for estimated charge-backs using a combination of factors such as historical experience, current whole-saler inventory levels, contract terms and the value of claims received but not yet processed.
Other discounts and sales returns
Other discounts are provided to wholesalers, hospi-tals, pharmacies, etc. They are usually linked to sales volume or provided as cash discounts. Accruals are
calculated based on historical data and recorded as a reduction in gross sales at the time the related sales are recorded. Sales returns are related to damaged or expired products.
Sale of services and licenses
Furthermore, revenue comprises the fair value of the consideration received or receivable for income derived from development services where revenue is measured at the expected net sales price.
Sales of licenses that transfer the rights associated with ownership of intellectual property are recognized at a point in time when control is transferred. Revenue from development services and licenses that do not transfer the right of ownership to intellectual property are recognized over time in line with the execution and delivery of the work.
Agreements with commercial partners generally include non-refundable upfront license and collabora-tion fees, milestone payments, the receipt of which is
dependent upon the achievement of certain clinical, regulatory or commercial milestones, as well as royal-ties on product sales of licensed products, if and when such product sales occur, and revenue from the supply of products. For these agreements that include multiple elements, total contract consideration is attributed to separately identifiable components on a reliable basis that reasonably reflects the selling prices that might be expected to be achieved in stand-alone transactions provided that each component has value to the partner on a stand-alone basis. The allocated consideration is recognized as revenue in accordance with the principles described above.
US Medicaid & Medicare rebates
Medicaid & Medicare are government insurance programs. Medicaid and Medicare rebates have been estimated using a combination of historical experience, product and population growth, price increases, and the impact of contracting strategies. The calculation also involves interpretation of relevant regulations that are subject to changes in interpretative guidance from government authorities. Bavarian Nordic adjusts the provision periodically to reflect actual sales perfor-mance.
Other discounts and sales returns
Other discounts are provided to wholesalers, hospi-tals, pharmacies, etc. They are usually linked to sales volume or provided as cash discounts. Accruals are
calculated based on historical data and recorded as a reduction in gross sales at the time the related sales are recorded. Sales returns are related to damaged or expired products.
", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForDiscountsAndRebatesExplanatory", "language": "en", "entity": "scheme:2138006JCDVYIN6INP51", "period": "2025-01-01T00:00:00/2026-01-01T00:00:00" } }, "f0__s8__7__138": { "value": "Key accounting estimates
Provisions for sales deductions
Sales discounts and rebates are predominantly issued in the US in connection with the US Federal and State Government Healthcare programs, namely Medicare and Medicaid, and commercial rebates.
The estimate of sales discounts and rebates is based on a calculation which includes a combination of historical utilization data, combined with expectations in relation to the development in sales and utilization. Further-more, specific circumstances regarding the different programs are considered. The obligations concerning sales discounts and rebates are incurred at the time the sale is recorded. However, the actual discount or rebate related to a specific sale may be invoiced later.
Bavarian Nordic considers the provisions established for sales discounts and rebates to be reasonable and appropriate based on currently available information. However, the actual amount of discounts and rebates may differ from the amounts estimated as more detailed information becomes available.
", "dimensions": { "concept": "ifrs-full:DisclosureOfProvisionsExplanatory", "language": "en", "entity": "scheme:2138006JCDVYIN6INP51", "period": "2025-01-01T00:00:00/2026-01-01T00:00:00" } }, "f0__s8__7__132": { "value": "DKK thousand | 2025 | 2024 |
Travel health | ||
Rabipur/RabAvert | 1,816,707 | 1,352,461 |
Encepur | 598,071 | 497,130 |
Vivotif | 198,361 | 179,212 |
Vaxchora | 37,880 | 64,153 |
Vimkunya | 84,565 | - |
Other product sale | 227,883 | 193,629 |
2,963,467 | 2,286,585 | |
Public preparedness | ||
Mpox/smallpox vaccine sale | 3,104,974 | 3,206,186 |
Sale of goods | 6,068,441 | 5,492,771 |
Contract work | 175,515 | 223,435 |
Sale of services | 175,515 | 223,435 |
Revenue | 6,243,956 | 5,716,206 |
Total revenue includes: | ||
Fair value adjustment concerning financial instruments entered into to hedge revenue | 72,931 | 5,486 |
Other product sale consists of the following:
\u2022\tSale of Dukoral and Ixiaro licensed from Valneva
\u2022\tSale of Heplisav licensed from Dynavax
DKK thousand | 2025 | 2024 |
Geographic split of revenue: | ||
USA | 2,697,034 | 2,702,900 |
Germany | 1,159,979 | 972,759 |
France | 723,946 | 268,766 |
Canada | 223,461 | 493,208 |
England | 213,589 | 98,639 |
Finland | 182,509 | 98,467 |
Singapore | 137,977 | 124,649 |
Switzerland | 108,325 | 52,591 |
Australia | 80,309 | 17,102 |
Saudi Arabia | 72,595 | 265,730 |
Spain | 35,361 | 54,734 |
Italy | 35,024 | 26,378 |
Austria | 25,314 | 29,217 |
Japan | 29,580 | 38,171 |
Other geographic markets | 518,953 | 472,895 |
Revenue | 6,243,956 | 5,716,206 |
Accounting for contract with Biomedical Advanced Research and Development Authority (BARDA)
When drug substance batches are invoiced to BARDA the batches remain in the Company's physical posses-sion until filling as final product. The filling takes place either at the Company's facility in Kvistgaard or at CMO's (a bill-and-hold arrangement). Revenue is recognized once the batches are releasable according to contract with BARDA.
Payment is due within 30 days after invoicing.
Note 28
Prepayment from customers
Accounting policies
Prepayments are recognized under liabilities and will be recognized in the income statement as the delivery of paid products takes place.
DKK thousand | 2025 | 2024 |
Prepayment from customers as of January 1 | 131,408 | - |
Prepayments received during the year | - | 131,408 |
Recognized as revenue during the year | (121,459) | - |
Prepayment from customers as of December 31 | 9,949 | 131,408 |
As of December 31, 2025, the majority of prepayments from customers were received from CEPI for multiple clinical studies.
The recognition of revenue is described in note 3.
Note 4
Production costs
DKK thousand | 2025 | 2024 |
Cost of goods sold | 1,869,858 | 1,580,276 |
Contract costs | 125,562 | 152,267 |
Other production costs | 823,255 | 847,456 |
Amortization of product rights | 376,668 | 317,449 |
Production costs | 3,195,343 | 2,897,448 |
Other production costs primarily consist of unallocated costs, including the cost of idle manufacturing capacity and cost of unsuccessful production runs, plus write-downs.
Write-downs for the year amounted to DKK 325 million and are primarily related to provisions for potential write-downs of Encepur and MVA-BN batches. See note 18. In addition, non-provisioned scrap amounted to DKK 125 million, resulting in total write-downs and scrap of DKK 450 million presented as Other production costs.
The underlying decrease in other production costs compared to 2024 was driven by an improved yield,
less scrap and a higher output success rate in bulk production leading to a higher absorption of indirect production costs. In 2025 cost of idle manufacturing capacity in Bern amounted to approx. DKK 93 million (approx. DKK 107 million).
The product rights to Rabipur/RabAvert and Encepur were amortized with DKK 285 million (DKK 279 million). The product rights for Vivotif and Vaxchora were amor-tized with DKK 38 million (DKK 38 million). The product rights for Vimkunya were amortized with DKK 54 million (DKK 0 million).
Note 5
Sales and distribution costs
Production costs consist of costs incurred in gener-ating the revenue for the year. Costs for raw materials, consumables, production staff and a proportion of production overheads, including maintenance, amorti-zation, depreciation and impairment of intangible and tangible assets used in production as well as operation,
administration and management of the production facility are recognized as production costs. Amortization of acquired product rights are recognized as production costs. In addition, the costs related to idle capacity and write-down to net realisable value of goods on stock are recognized.
Accounting policies
Sales and distribution costs comprise costs incurred for the sale and distribution of products sold during the year. This includes costs incurred for sales campaigns, training and administration of the sales force and for direct distribution, marketing and promotion. Also included are salaries and other costs for the sales, distribution and marketing functions, loss allowance for expected credit losses, amortization, depreciation and other indirect costs.
Accounting policies
Research and development costs include salaries and costs directly attributable to the Group\u2019s research and development projects, less government grants. Further-more, salaries and costs supporting direct research and development, including costs of patents, rent, leasing and depreciation attributable to laboratories, and external scientific consultancy services, are recognized under research and development costs. No indirect or general overhead costs that are not directly attributable to research and development activities are included in the disclosure of research and development expenses recognized in the income statement.
Research costs are expensed in the year they occur.
Development costs are generally expensed in the year they occur. In line with industry custom, capitaliza-tion of development costs does not begin until it is deemed realistic that the product can be completed
and marketed and it is highly likely that a marketing authorization will be received. In addition, there must be sufficient certainty that the future earnings to the Group will cover not only production costs, direct distri-bution and administrative costs, but also the develop-ment costs.
Contract research and development costs incurred to achieve revenue are included in \"Research and devel-opment costs incurred this year\" in the table and then transferred under \"Contract costs recognized as produc-tion costs\" to be recognized as production costs.
Grants that compensate the Group for research and development expenses incurred, which are recognized directly in the income statement, are set off against the costs of research and development at the time when a final and binding right to the grant has been obtained.
Accounting policies
Administrative costs include costs of Group Manage-ment, staff functions, administrative personnel, office costs, rent, short-term lease payments and depreciation not relating specifically to production, research and development or sales and distribution.
Interest expenses are recognized in the income statement at the amounts relating to the financial year. Financial expenses also include adjustment of net present value of the deferred consideration, cf. note 24, negative value adjustments of financial instruments and securities and net currency losses.
", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForExpensesExplanatory", "language": "en", "entity": "scheme:2138006JCDVYIN6INP51", "period": "2025-01-01T00:00:00/2026-01-01T00:00:00" } }, "f0__s8__7__147-1": { "value": "Note 6
Research and development costs
DKK thousand | 2025 | 2024 |
Research and development costs incurred this year | 905,865 | 1,014,777 |
Of which: | ||
Contract costs recognized as production costs (note 4) | (125,562) | (152,267) |
Research and development costs recognized in the income statement | 780,303 | 862,510 |
Note 6
Research and development costs
DKK thousand | 2025 | 2024 |
Research and development costs incurred this year | 905,865 | 1,014,777 |
Of which: | ||
Contract costs recognized as production costs (note 4) | (125,562) | (152,267) |
Research and development costs recognized in the income statement | 780,303 | 862,510 |
San Diego site
In December 2024, Bavarian Nordic made the stra-tegic decision to close its San Diego site. This decision was driven by the need to streamline operations and optimize resources. The closure of the San Diego site resulted in a one-time restructuring cost of DKK 80 million, which has been included in the research and development expenses for the year.
Acquired rights and development in progress
Under the Group\u2019s accounting policies and in accordance with common industry practice, development costs are generally expensed in the year they occur. This approach is taken due to the uncertainty surrounding the future benefits of these costs until commercial approval is obtained.
Acquired rights and development in progress
The Purchase and Sale Agreement concluded with Emergent BioSolutions included acquisition of a late-stage vaccine candidate for Chikungunya virus. The initial acquisition price amounted to DKK 788 million. No further cost will be capitalized.
The agreement with Emergent BioSolutions also included milestone payments totaling USD 80 million related to submission and approval of Biologics License Application (BLA) to FDA and Marketing Authorization Application to EMA for the chikungunya development asset.
At initial recognition the net present value of probable future development milestone payments to Emergent BioSolutions Inc. amounted to DKK 499 million and was recognized as deferred consideration (note 24).
Developed production processes
Developed production processes consist of the the as-is technology transfer from GSK to Bavarian Nordic of the manufacturing process for Rabipur/RabAvert and Encepur. The Company has incurred material costs in terms of internal labor and consultancy to handle the technology transfer and has gained crucial knowledge about the manufacturing process. These costs are capitalized as an intangible asset. As per December 31, 2025 the capitalized costs amounts to DKK 306 million (DKK 345 million).
", "dimensions": { "concept": "ifrs-full:DisclosureOfResearchAndDevelopmentExpenseExplanatory", "language": "en", "entity": "scheme:2138006JCDVYIN6INP51", "period": "2025-01-01T00:00:00/2026-01-01T00:00:00" } }, "f0__s8__7__152": { "value": "Accounting policies
Research and development costs include salaries and costs directly attributable to the Group\u2019s research and development projects, less government grants. Further-more, salaries and costs supporting direct research and development, including costs of patents, rent, leasing and depreciation attributable to laboratories, and external scientific consultancy services, are recognized under research and development costs. No indirect or general overhead costs that are not directly attributable to research and development activities are included in the disclosure of research and development expenses recognized in the income statement.
Research costs are expensed in the year they occur.
Development costs are generally expensed in the year they occur. In line with industry custom, capitaliza-tion of development costs does not begin until it is deemed realistic that the product can be completed
and marketed and it is highly likely that a marketing authorization will be received. In addition, there must be sufficient certainty that the future earnings to the Group will cover not only production costs, direct distri-bution and administrative costs, but also the develop-ment costs.
Contract research and development costs incurred to achieve revenue are included in \"Research and devel-opment costs incurred this year\" in the table and then transferred under \"Contract costs recognized as produc-tion costs\" to be recognized as production costs.
Grants that compensate the Group for research and development expenses incurred, which are recognized directly in the income statement, are set off against the costs of research and development at the time when a final and binding right to the grant has been obtained.
Accounting policies
Research and development costs include salaries and costs directly attributable to the Group\u2019s research and development projects, less government grants. Further-more, salaries and costs supporting direct research and development, including costs of patents, rent, leasing and depreciation attributable to laboratories, and external scientific consultancy services, are recognized under research and development costs. No indirect or general overhead costs that are not directly attributable to research and development activities are included in the disclosure of research and development expenses recognized in the income statement.
Research costs are expensed in the year they occur.
Development costs are generally expensed in the year they occur. In line with industry custom, capitaliza-tion of development costs does not begin until it is deemed realistic that the product can be completed
and marketed and it is highly likely that a marketing authorization will be received. In addition, there must be sufficient certainty that the future earnings to the Group will cover not only production costs, direct distri-bution and administrative costs, but also the develop-ment costs.
Contract research and development costs incurred to achieve revenue are included in \"Research and devel-opment costs incurred this year\" in the table and then transferred under \"Contract costs recognized as produc-tion costs\" to be recognized as production costs.
Grants that compensate the Group for research and development expenses incurred, which are recognized directly in the income statement, are set off against the costs of research and development at the time when a final and binding right to the grant has been obtained.
Note 7
Administrative costs
Accounting policies
Administrative costs include costs of Group Manage-ment, staff functions, administrative personnel, office costs, rent, short-term lease payments and depreciation not relating specifically to production, research and development or sales and distribution.
Note 8
Staff costs
DKK thousand | 2025 | 2024 |
Wages and salaries | 1,482,764 | 1,327,419 |
Contribution based pension | 119,769 | 116,171 |
Social security expenses | 83,693 | 76,057 |
Other staff expenses | 93,114 | 88,440 |
Share-based payment, see specification in note 30 | 84,485 | 78,672 |
Staff costs | 1,863,825 | 1,686,759 |
Staff expenses are distributed as follows: | ||
Production costs | 1,006,153 | 793,584 |
Sales and distribution costs | 255,303 | 220,433 |
Research and development costs | 261,509 | 391,617 |
Administrative costs | 302,798 | 281,125 |
Capitalized salaries | 38,062 | - |
Staff costs | 1,863,825 | 1,686,759 |
Average number of employees converted to full-time | 1,693 | 1,529 |
Number of employees as of December 31 converted to full-time | 1,795 | 1,611 |
The Group has mainly defined contribution plans and pays regular fixed contributions to independent pension funds and insurance companies.
DKK thousand | 2025 | 2024 |
Staff costs include the following costs: | ||
Board of Directors: | ||
Remuneration | 6,593 | 6,490 |
Share-based payment | 1,869 | 2,070 |
Remuneration to Board of Directors | 8,462 | 8,560 |
Executive Management: | ||
Salary | 22,478 | 24,815 |
Paid bonus | 10,272 | 14,734 |
Other employee benefits | 1,429 | 2,129 |
Contribution based pension | 3,260 | 3,709 |
Share-based payment | 32,223 | 32,638 |
Salary and benefits in notice period | - | 19,966 |
Remuneration to Executive Management | 69,662 | 97,991 |
Total management remuneration | 78,124 | 106,551 |
Executive Management consist of CEO and President Paul Chaplin and CFO Henrik Juuel (constitute the Corpo-rate Management in the Parent Company) and COO Russell Thirsk and CCO JC May. CPO Anu Kerns resigned beginning of 2025. Salary and benefits in the notice period was accrued in 2024. The accrual for 2024 also included severance package for CMO Laurence De Moer-looze who resigned in May 2024.
Restricted stock units
In March 2025 Corporate Management was granted 39,038 restricted stock units (excl. matching shares) (27,873 restricted stock units) at a value of DKK 6.7 million (DKK 4.6 million) at grant. Other Executive Management was granted 20,724 restricted stock units (excl. matching shares) (30,161 restricted stock units) corresponding to a value of DKK 3.6 million (DKK 4.9 million) at grant.
In December 2025 Corporate Management was granted 71,121 (31,919) performance restricted stock units at a value of DKK 13.4 million (DKK 6.2 million) at grant. Other Executive Management was granted 32,888 (14,781) performance restricted stock units at a value of DKK 6.2 million (DKK 2.9 million) at grant.
In August 2025, the members of the Board of Direc-tors were granted in total 8,004 restricted stock units (13,637 restricted stock units) corresponding to 50% of their fixed fee amounting to DKK 1.9 million (DKK 2.1 million). For further description of restricted stock units see note 29.
Warrants
In December 2024 Corporate Management was granted 80,839 warrants with a fair value of DKK 6.2 million. Other Executive Management was granted 37,435 warrants with a fair value of DKK 2.9 million. For 2025 the composition of executive management remuner-ation was changed and no warrants were granted. Instead the grant of performance restricted stock units increased, see above. Warrants fair value is calculated based on Black-Scholes, cf. note 29.
Incentive programs for the Executive Management and other employees are disclosed in note 29.
Members of the Executive Management have contracts of employment containing standard terms for members of the Executive Management of Danish listed compa-nies, including the periods of notice that both parties
are required to give and competition clauses. If a contract of employment of a member of the Executive Management is terminated by the Company without misconduct on the part of such member, the member of the Executive Management is entitled to compen-sation, which, depending on the circumstances, may amount to a maximum of 8-18 months' remuneration. In the event of a change of control the compensation may amount to 24 months' remuneration.
Contracts with members of Executive Management are open-ended until the age of 70 years for the CEO. The termination period on the part of the Company is 18 months towards the CEO and may be prolonged to up to 24 months in case of change of control situations, and periods during which severance payment can be made may be up to 12 months, provided, however, that the total period for payment of termination pay and severance pay may not exceed 24 months. The termination period on the part of the Company is 12 months towards the CFO and may be prolonged to up to 16 months in case of change of control situations, and periods during which severance payments can be made equal a lump sum of additional 4 months base salary. The termination periods on the part of the Executive Management towards the Company are 6 months for the CEO and 6 months for the CFO. If the CEO passes away during his employment, the Company shall pay salary for the remaining month plus 12 additional months post-employment benefit to the CEO's cohab-iting spouse/partner and secondarily to the Executive\u2019s children.
DKK thousand | 2025 | 2024 |
Wages and salaries | 1,482,764 | 1,327,419 |
Contribution based pension | 119,769 | 116,171 |
Social security expenses | 83,693 | 76,057 |
Other staff expenses | 93,114 | 88,440 |
Share-based payment, see specification in note 30 | 84,485 | 78,672 |
Staff costs | 1,863,825 | 1,686,759 |
Staff expenses are distributed as follows: | ||
Production costs | 1,006,153 | 793,584 |
Sales and distribution costs | 255,303 | 220,433 |
Research and development costs | 261,509 | 391,617 |
Administrative costs | 302,798 | 281,125 |
Capitalized salaries | 38,062 | - |
Staff costs | 1,863,825 | 1,686,759 |
Average number of employees converted to full-time | 1,693 | 1,529 |
Number of employees as of December 31 converted to full-time | 1,795 | 1,611 |
The Group has mainly defined contribution plans and pays regular fixed contributions to independent pension funds and insurance companies.
Note 26
Retirement benefit obligations
Accounting policies
In defined contribution plans, the Group makes regular payments of fixed contributions to independent pension funds and insurance companies. The Group is under no obligation to pay additional contributions. Costs for defined contribution plans are recognized in the income statement as the Group assumes an obliga-tion to make the payment.
In defined benefit plans, the Group is under an obliga-tion to pay a defined benefit on retirement. The actuar-ially calculated present value less the fair value of any plan assets is recognized in the balance sheet under retirement benefit obligations. The total service costs of the year plus calculated interest based on actuarial estimates and financial assumptions at the beginning of the year are recognized in the income statement. The difference between the forecast development in plan assets and liabilities and the realized values at the end of the year is called actuarial gains or losses and is recognized in other comprehensive income. In connection with a change in benefits regarding the employees\u2019 employment with the Group to date, there will be a change in the actuarial calculation of the net present value, which is taken directly to the income statement.
Defined contribution plans
The Group offers pension plans to all employees in Denmark and abroad. Most of the pension plans are defined contribution plans, expect for the pension plan in Bavarian Nordic Berna GmbH, see below. The Group funds the plans through regular payments of premiums to independent insurance companies responsible for the pension obligations towards the beneficiaries. Once the pension contributions for defined contribution plans have been made, the Group has no further obligation towards current or former employees. Contributions to defined contribution plans are recognized in the income statement when paid.
Defined benefit plans
The pension plan in Bavarian Nordic Berna GmbH is part of a collective foundation in which other plans of non-related employers also participate, and the different plans all participate in the various risks relating to the foundation.
Defined benefit liabilities are recognized in the balance sheet and in the income statement as indicated below.
Employees from Bavarian Nordic Switzerland AG was transferred to Bavarian Nordic Berna GmbH in August 2024 and were included in the pension plan as from December 31, 2024. The previous pension plan in Bavarian Nordic Switzerland AG was recognized as a contribution benefit plan and therefore no pension obligation was recognized. The net assets under the Bavarian Nordic Berna GmbH pension plan were adjusted in 2024 to include the transferred employees.
DKK thousand | 2025 | 2024 |
Defined contribution plans | 91,456 | 84,966 |
Defined benefit plans | 28,313 | 31,205 |
Cost of pension plans recognized in income statement | 119,769 | 116,171 |
Current service cost | 26,897 | 12,749 |
Past service cost | - | 17,186 |
Administration expenses | 431 | 309 |
Net interest expenses | 985 | 961 |
Cost of defined benefit plans recognized in income statement | 28,313 | 31,205 |
Actuarial gains/losses on pension obligations | 4,449 | (89,584) |
Actuarial gains/losses on plan assets | 31,656 | 72,194 |
Actuarial gains/losses on defined benefit plans recognized in other comprehensive income | 36,105 | (17,390) |
Plan assets as of January 1 | 387,481 | 221,024 |
Exchange adjustments | 4,897 | (3,492) |
Actual rate of interest | 3,891 | 3,006 |
Actuarial gains/losses on plan assets | 31,656 | 72,194 |
Administration expenses paid | (432) | (309) |
Employer contributions | 23,971 | 14,182 |
Employee contributions | 13,781 | 9,358 |
Benefit paid out | 10,624 | 29,582 |
Other restructuring events | - | 41,936 |
Plan assets as of December 31 | 475,869 | 387,481 |
DKK thousand | 2025 | 2024 |
Specification of present value of defined benefit obligation | ||
Present value of defined benefit liability as of January 1 | 501,070 | 301,756 |
Exchange adjustments | 6,037 | (5,048) |
Current service costs | 26,897 | 12,749 |
Past service costs | - | 17,186 |
Calculated interest on liability | 4,875 | 3,967 |
Actuarial gains/losses, financial assumptions | (41,175) | 17,250 |
Actuarial gains/losses, experience | 36,726 | 72,334 |
Employee contributions | 13,781 | 9,358 |
Benefit paid out | 10,624 | 29,582 |
Other restructuring events | - | 41,936 |
Present value of defined benefit liability as of December 31 | 558,835 | 501,070 |
Fair value of plan assets as of December 31 | (475,869) | (387,481) |
Net liability of defined benefit plans as of December 31 | 82,966 | 113,589 |
Net liability of defined benefit plans as of January 1 | 113,589 | 80,732 |
Expenditure for the year | 28,313 | 31,205 |
Actuarial gains/losses on pension obligation | (4,449) | 89,584 |
Exchange adjustment | 1,140 | (1,556) |
Actuarial gains/losses on plan assets | (31,656) | (72,194) |
Payments received | (23,971) | (14,182) |
Net liability of defined benefit plans as of December 31 | 82,966 | 113,589 |
The contributions to the plan for 2026 are expected in the same level as in 2025.
DKK thousand | 2025 | 2024 |
Percentage of plan assets invested in asset category | ||
Equity | 33.7% | 33.5% |
Bonds | 25.1% | 25.5% |
Property | 14.4% | 13.6% |
Other | 26.8% | 27.4% |
Actuarial assumptions applied at the balance sheet date (expressed as an average) | ||
Discount rate | 1.35% | 1.00% |
Future rate of salary increases | 1.60% | 1.80% |
Inflation | 0.90% | 1.10% |
Assumptions regarding future mortality are set based on actuarial advice in accordance with published statistics and experience. These assumptions translate into an average life expectancy in years for a pensioner retiring at age 65 as follows: | ||
Life expectancies | ||
Retiring aged 65 at the end of the reporting period | ||
Male | 22.2 | 22.1 |
Female | 24.0 | 23.9 |
Retiring aged 65, 20 years after the end of the reporting period | ||
Male | 24.2 | 24.1 |
Female | 25.9 | 25.8 |
The below sensitivity analysis shows the change in one of the actuarial assumptions, while other assumptions are kept constant. In practice, this is unlikely to occur as changes in some of the assumptions may be correlated.
Percentage increase/decrease in the gross liability resulting from a change in a single actuarial assumption
DKK thousand | 2025 | 2024 |
+0.5%-point | +0.5%-point | |
Discount rate | -7.7% | -7.7% |
+1 year | +1 year | |
Life expectancy | 1.6% | 1.7% |
DKK thousand | 2025 | 2024 |
Wages and salaries | 1,482,764 | 1,327,419 |
Contribution based pension | 119,769 | 116,171 |
Social security expenses | 83,693 | 76,057 |
Other staff expenses | 93,114 | 88,440 |
Share-based payment, see specification in note 30 | 84,485 | 78,672 |
Staff costs | 1,863,825 | 1,686,759 |
Staff expenses are distributed as follows: | ||
Production costs | 1,006,153 | 793,584 |
Sales and distribution costs | 255,303 | 220,433 |
Research and development costs | 261,509 | 391,617 |
Administrative costs | 302,798 | 281,125 |
Capitalized salaries | 38,062 | - |
Staff costs | 1,863,825 | 1,686,759 |
Average number of employees converted to full-time | 1,693 | 1,529 |
Number of employees as of December 31 converted to full-time | 1,795 | 1,611 |
The Group has mainly defined contribution plans and pays regular fixed contributions to independent pension funds and insurance companies.
DKK thousand | 2025 | 2024 |
Staff costs include the following costs: | ||
Board of Directors: | ||
Remuneration | 6,593 | 6,490 |
Share-based payment | 1,869 | 2,070 |
Remuneration to Board of Directors | 8,462 | 8,560 |
Executive Management: | ||
Salary | 22,478 | 24,815 |
Paid bonus | 10,272 | 14,734 |
Other employee benefits | 1,429 | 2,129 |
Contribution based pension | 3,260 | 3,709 |
Share-based payment | 32,223 | 32,638 |
Salary and benefits in notice period | - | 19,966 |
Remuneration to Executive Management | 69,662 | 97,991 |
Total management remuneration | 78,124 | 106,551 |
DKK thousand | 2025 | 2024 |
Staff costs include the following costs: | ||
Board of Directors: | ||
Remuneration | 6,593 | 6,490 |
Share-based payment | 1,869 | 2,070 |
Remuneration to Board of Directors | 8,462 | 8,560 |
Executive Management: | ||
Salary | 22,478 | 24,815 |
Paid bonus | 10,272 | 14,734 |
Other employee benefits | 1,429 | 2,129 |
Contribution based pension | 3,260 | 3,709 |
Share-based payment | 32,223 | 32,638 |
Salary and benefits in notice period | - | 19,966 |
Remuneration to Executive Management | 69,662 | 97,991 |
Total management remuneration | 78,124 | 106,551 |
Executive Management consist of CEO and President Paul Chaplin and CFO Henrik Juuel (constitute the Corpo-rate Management in the Parent Company) and COO Russell Thirsk and CCO JC May. CPO Anu Kerns resigned beginning of 2025. Salary and benefits in the notice period was accrued in 2024. The accrual for 2024 also included severance package for CMO Laurence De Moer-looze who resigned in May 2024.
Restricted stock units
In March 2025 Corporate Management was granted 39,038 restricted stock units (excl. matching shares) (27,873 restricted stock units) at a value of DKK 6.7 million (DKK 4.6 million) at grant. Other Executive Management was granted 20,724 restricted stock units (excl. matching shares) (30,161 restricted stock units) corresponding to a value of DKK 3.6 million (DKK 4.9 million) at grant.
In December 2025 Corporate Management was granted 71,121 (31,919) performance restricted stock units at a value of DKK 13.4 million (DKK 6.2 million) at grant. Other Executive Management was granted 32,888 (14,781) performance restricted stock units at a value of DKK 6.2 million (DKK 2.9 million) at grant.
In August 2025, the members of the Board of Direc-tors were granted in total 8,004 restricted stock units (13,637 restricted stock units) corresponding to 50% of their fixed fee amounting to DKK 1.9 million (DKK 2.1 million). For further description of restricted stock units see note 29.
Warrants
In December 2024 Corporate Management was granted 80,839 warrants with a fair value of DKK 6.2 million. Other Executive Management was granted 37,435 warrants with a fair value of DKK 2.9 million. For 2025 the composition of executive management remuner-ation was changed and no warrants were granted. Instead the grant of performance restricted stock units increased, see above. Warrants fair value is calculated based on Black-Scholes, cf. note 29.
Incentive programs for the Executive Management and other employees are disclosed in note 29.
Members of the Executive Management have contracts of employment containing standard terms for members of the Executive Management of Danish listed compa-nies, including the periods of notice that both parties
are required to give and competition clauses. If a contract of employment of a member of the Executive Management is terminated by the Company without misconduct on the part of such member, the member of the Executive Management is entitled to compen-sation, which, depending on the circumstances, may amount to a maximum of 8-18 months' remuneration. In the event of a change of control the compensation may amount to 24 months' remuneration.
Contracts with members of Executive Management are open-ended until the age of 70 years for the CEO. The termination period on the part of the Company is 18 months towards the CEO and may be prolonged to up to 24 months in case of change of control situations, and periods during which severance payment can be made may be up to 12 months, provided, however, that the total period for payment of termination pay and severance pay may not exceed 24 months. The termination period on the part of the Company is 12 months towards the CFO and may be prolonged to up to 16 months in case of change of control situations, and periods during which severance payments can be made equal a lump sum of additional 4 months base salary. The termination periods on the part of the Executive Management towards the Company are 6 months for the CEO and 6 months for the CFO. If the CEO passes away during his employment, the Company shall pay salary for the remaining month plus 12 additional months post-employment benefit to the CEO's cohab-iting spouse/partner and secondarily to the Executive\u2019s children.
Note 9
Depreciation, amortization and impairment losses
DKK thousand | 2025 | 2024 |
Depreciation and amortization included in: | ||
Production costs | 663,327 | 545,901 |
Sales and distribution costs | - | 80 |
Research and development costs | 6,353 | 20,424 |
Administrative costs | 44,690 | 58,495 |
Depreciation and amortization | 714,370 | 624,900 |
Hereof loss from disposed fixed assets | 18,426 | 2,526 |
Impairment losses included in: | ||
Production costs | 23,155 | - |
Research and development costs | - | 38,475 |
Administrative costs | 601 | - |
Impairment losses | 23,756 | 38,475 |
The product rights to Rabipur/RabAvert and Encepur are amortized over 20 years with an amortization of DKK 285 million for 2025.
The product rights for Vivotif and Vaxchora are amor-tized over 10-20 years with an amortization of DKK 38 million in 2025.
The product rights for Vimkunya are amortized over 20 years with an amortization of DKK 54 in 2025.
Amortization of product rights is recognized as part of cost of goods sold under production costs. See further description in note 15.
The impairment losses included in production cost of DKK 23 million for 2025 relates to the impairment of old lab equipment and machinery.
2025 | ||||||
DKK thousand | Product rights | Acquired rights and development in progress | Developed production process | Software | Other intangible assets in progress | Total |
Costs as of January 1, 2025 | 6,094,710 | 1,286,782 | 374,857 | 130,894 | 18,694 | 7,905,937 |
Additions | - | - | - | 2,546 | 46,217 | 48,763 |
Transfer | 1,286,782 | (1,286,782) | - | 12,442 | (12,442) | - |
Transfer from property, plant and equipment | - | - | - | - | 8,399 | 8,399 |
Disposals | - | - | - | (34,873) | (1,898) | (36,771) |
Exchange rate adjustments | - | - | - | (231) | (205) | (436) |
Cost as of December 31, 2025 | 7,381,492 | - | 374,857 | 110,778 | 58,765 | 7,925,892 |
Amortization and impairment losses as of January 1, 2025 | 1,434,284 | - | 31,238 | 109,523 | - | 1,575,045 |
Amortization | 376,667 | - | 37,486 | 11,799 | - | 425,952 |
Transfer to/from property, plant and equipment | - | - | - | 128 | - | 128 |
Disposals | - | - | - | (34,623) | - | (34,623) |
Exchange rate adjustments | - | - | - | (260) | - | (260) |
Amortization and impairment losses as of December 31, 2025 | 1,810,951 | - | 68,724 | 86,567 | - | 1,966,242 |
Carrying amount as of December 31, 2025 | 5,570,541 | - | 306,133 | 24,211 | 58,765 | 5,959,650 |
Geographical split of intangible assets - 2025 | ||||||
Denmark | 5,955,158 | |||||
Germany | 1,273 | |||||
USA | - | |||||
Switzerland | 3,219 | |||||
Total intangible assets | 5,959,650 |
2025 | |||
DKK thousand | Acquistion price | Carrying amount December 31, 2025 | Remaining amortization period |
Rabipur/RabAvert | 3,252,110 | 2,299,212 | 14 years |
Encepur | 2,393,023 | 1,690,273 | 14 years |
Vivotif | 312,208 | 228,539 | 7.5 years |
Vaxchora | 137,369 | 119,354 | 17.5 years |
Vimkunya | 1,286,782 | 1,233,163 | 19.2 years |
Total product rights | 7,381,492 | 5,570,541 | |
2024 | |||
DKK thousand | Acquistion price | Carrying amount December 31, 2024 | Remaining amortization period |
Rabipur/RabAvert | 3,252,110 | 2,463,437 | 15 years |
Encepur | 2,393,023 | 1,811,007 | 15 years |
Vivotif | 312,208 | 259,759 | 8.5 years |
Vaxchora | 137,369 | 126,223 | 18.5 years |
Total product rights | 6,094,710 | 4,660,426 |
2024 | ||||||
DKK thousand | Product rights | Acquired rights and development in progress | Developed Production Process | Software | Other intangible assets in progress | Total |
Costs as of January 1, 2024 | 5,908,277 | 2,690,013 | - | 114,958 | 417,326 | 9,130,574 |
Additions | 186,433 | - | - | 233 | 21,259 | 207,925 |
Transfer | - | - | 374,857 | 17,902 | (392,759) | - |
Transfer to/from property, plant and equipment | - | - | - | (2,265) | (884) | (3,149) |
Disposals | - | (1,403,264) | - | - | (26,224) | (1,429,488) |
Exchange rate adjustments | - | 33 | - | 66 | (24) | 75 |
Cost as of December 31, 2024 | 6,094,710 | 1,286,782 | 374,857 | 130,894 | 18,694 | 7,905,937 |
Amortization and impairment losses as of January 1, 2024 | 1,116,835 | 1,403,264 | - | 102,515 | 26,224 | 2,648,838 |
Amortization | 317,449 | - | 31,238 | 8,120 | - | 356,807 |
Transfer | - | - | - | (1,231) | - | (1,231) |
Disposals | - | (1,403,264) | - | - | (26,224) | (1,429,488) |
Exchange rate adjustments | - | - | - | 119 | - | 119 |
Amortization and impairment losses as of December 31, 2024 | 1,434,284 | - | 31,238 | 109,523 | - | 1,575,045 |
Carrying amount as of December 31, 2024 | 4,660,426 | 1,286,782 | 343,619 | 21,371 | 18,694 | 6,330,892 |
Geographical split of intangible assets \u2013 2024 | ||||||
Denmark | 6,325,789 | |||||
Germany | 685 | |||||
USA | 1,838 | |||||
Switzerland | 2,580 | |||||
Total intangible assets | 6,330,892 |
2025 | ||||||
DKK thousand | Land and buildings | Leasehold improvement | Plant and machinery | Other fixtures and fittings, other plant and equipment | Assets under construction | Total |
Costs as of January 1, 2025 | 1,274,045 | 47,385 | 719,675 | 916,272 | 159,660 | 3,117,037 |
Additions | 5,040 | - | 2,844 | 16,161 | 181,243 | 205,288 |
Transfer | 15,730 | 4,108 | 45,120 | 24,365 | (89,323) | - |
Transfer from intangible assets | 347 | - | - | - | (8,746) | (8,399) |
Disposals | (359) | - | (39,016) | (22,904) | (11,012) | (73,291) |
Exchange rate adjustments | 3,916 | 61 | 1,089 | (2,807) | 1,015 | 3,274 |
Cost as of December 31, 2025 | 1,298,719 | 51,554 | 729,712 | 931,087 | 232,837 | 3,243,909 |
Depreciation and impairment losses as of January 1,2025 | 335,039 | 29,069 | 302,465 | 289,896 | - | 956,469 |
Depreciation | 56,596 | 9,612 | 79,565 | 96,199 | - | 241,972 |
Transfer from intangible assets | 11 | - | - | (139) | - | (128) |
Impairment losses | 601 | - | 23,048 | 107 | - | 23,756 |
Disposals | (325) | - | (31,793) | (22,678) | - | (54,796) |
Exchange rate adjustments | 754 | 23 | 7,749 | (2,628) | - | 5,898 |
Depreciation and impairment losses as of December 31, 2025 | 392,676 | 38,704 | 381,034 | 360,757 | - | 1,173,171 |
Carrying amount as of December 31, 2025 | 906,043 | 12,850 | 348,678 | 570,330 | 232,837 | 2,070,738 |
Geographical split of property, plant and equipment \u2013 2025 | ||||||
Denmark | 1,360,407 | |||||
Germany | 59,617 | |||||
USA | 833 | |||||
Switzerland | 649,881 | |||||
Total property, plant and equipment | 2,070,738 |
2024 | ||||||
DKK thousand | Land and buildings | Leasehold improvement | Plant and machinery | Other fixtures and fittings, other plant and equipment | Assets under construction | Total |
Costs as of January 1, 2024 | 1,268,062 | 47,036 | 646,707 | 889,215 | 206,721 | 3,057,741 |
Additions | - | - | 1,498 | 5,189 | 72,825 | 79,512 |
Transfer | 11,127 | 1,516 | 71,763 | 34,526 | (118,932) | - |
Transfer from intangible assets | - | - | 3,149 | - | - | 3,149 |
Disposals | - | (1,271) | (2,137) | (11,243) | (538) | (15,189) |
Exchange rate adjustments | (5,144) | 104 | (1,305) | (1,415) | (416) | (8,176) |
Cost as of December 31, 2024 | 1,274,045 | 47,385 | 719,675 | 916,272 | 159,660 | 3,117,037 |
Depreciation and impairment losses as of January 1,2024 | 281,049 | 21,989 | 234,033 | 193,155 | - | 730,226 |
Depreciation | 54,136 | 7,394 | 67,637 | 92,301 | - | 221,468 |
Transfer | - | - | 1,529 | (1,529) | - | - |
Transfer from intangible assets | - | - | 1,231 | - | - | 1,231 |
Impairment losses | - | - | - | 12,044 | - | 12,044 |
Disposals | - | (337) | (2,019) | (5,198) | - | (7,554) |
Exchange rate adjustments | (146) | 23 | 54 | (877) | - | (946) |
Depreciation and impairment losses as of December 31, 2024 | 335,039 | 29,069 | 302,465 | 289,896 | - | 956,469 |
Carrying amount as of December 31, 2024 | 939,006 | 18,316 | 417,210 | 626,376 | 159,660 | 2,160,568 |
Geographical split of property, plant and equipment \u2013 2024 | ||||||
Denmark | 1,509,265 | |||||
Germany | 47,818 | |||||
USA | 18,283 | |||||
Switzerland | 585,202 | |||||
Total property, plant and equipment | 2,160,568 |
Note 10
Fees to auditor appointed at the annual general meeting
DKK thousand | 2025 | 2024 |
Audit of financial statements | 3,252 | 2,685 |
Other assurance services | 1,252 | 1,800 |
Other services | 94 | 60 |
Fees | 4,598 | 4,545 |
The fee for non-audit services provided to the Group by KPMG P/S, Denmark, amounted to DKK 1.3 million (DKK 1.8 million) and consisted of limited assurance on the sustainability statements, assistance with compli-ance reviews, and other accounting and tax advisory services.
Note 11
Financial income
Accounting policies
Interest income is recognized in the income state-ment at the amounts relating to the financial year. Financial income also includes net positive value adjustments of financial instruments and securities, and net currency gains.
DKK thousand | 2025 | 2024 |
Financial income from bank and deposit contracts1 | 36,874 | 48,307 |
Financial income from securities | 14,169 | 27,369 |
Fair value adjustments on securities | - | 7,831 |
Net foreign exchange gains | - | 66,558 |
Financial income | 51,043 | 150,065 |
1Interest income from financial assets measured at amortized cost
Note 11
Financial income
Accounting policies
Interest income is recognized in the income state-ment at the amounts relating to the financial year. Financial income also includes net positive value adjustments of financial instruments and securities, and net currency gains.
DKK thousand | 2025 | 2024 |
Financial income from bank and deposit contracts1 | 36,874 | 48,307 |
Financial income from securities | 14,169 | 27,369 |
Fair value adjustments on securities | - | 7,831 |
Net foreign exchange gains | - | 66,558 |
Financial income | 51,043 | 150,065 |
1Interest income from financial assets measured at amortized cost
Interest income is recognized in the income state-ment at the amounts relating to the financial year. Financial income also includes net positive value adjustments of financial instruments and securities, and net currency gains.
", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForFinanceIncomeAndCostsExplanatory", "language": "en", "entity": "scheme:2138006JCDVYIN6INP51", "period": "2025-01-01T00:00:00/2026-01-01T00:00:00" } }, "f0__s8__7__167-1": { "value": "Accounting policiesInterest income is recognized in the income state-ment at the amounts relating to the financial year. Financial income also includes net positive value adjustments of financial instruments and securities, and net currency gains.
Accounting policiesInterest expenses are recognized in the income statement at the amounts relating to the financial year. Financial expenses also include adjustment of net present value of the deferred consideration, cf. note 24, negative value adjustments of financial instruments and securities and net currency losses.
", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForInterestIncomeAndExpenseExplanatory", "language": "en", "entity": "scheme:2138006JCDVYIN6INP51", "period": "2025-01-01T00:00:00/2026-01-01T00:00:00" } }, "f0__s8__7__169-1": { "value": "Note 12
Financial expenses
DKK thousand | 2025 | 2024 |
Interest expenses on debt1 | 6,181 | 5,190 |
Fair value adjustments on securities | 6,932 | - |
Unwinding of the discount related to deferred consideration | 5,001 | 72,682 |
Adjustment of deferred consideration due to change in estimated timing of payments | 16,453 | 7,090 |
Currency adjustment deferred consideration | 2,324 | 24,899 |
Financial expenses, other | 6,958 | 8,617 |
Net foreign exchange losses | 10,038 | - |
Financial expenses | 53,887 | 118,478 |
1Interest expenses on financial liabilities measured at amortized cost
", "dimensions": { "concept": "ifrs-full:DisclosureOfExpensesExplanatory", "language": "en", "entity": "scheme:2138006JCDVYIN6INP51", "period": "2025-01-01T00:00:00/2026-01-01T00:00:00" } }, "f0__s8__7__171-1": { "value": "Note 12
Financial expenses
DKK thousand | 2025 | 2024 |
Interest expenses on debt1 | 6,181 | 5,190 |
Fair value adjustments on securities | 6,932 | - |
Unwinding of the discount related to deferred consideration | 5,001 | 72,682 |
Adjustment of deferred consideration due to change in estimated timing of payments | 16,453 | 7,090 |
Currency adjustment deferred consideration | 2,324 | 24,899 |
Financial expenses, other | 6,958 | 8,617 |
Net foreign exchange losses | 10,038 | - |
Financial expenses | 53,887 | 118,478 |
1Interest expenses on financial liabilities measured at amortized cost
", "dimensions": { "concept": "ifrs-full:DisclosureOfFinanceCostExplanatory", "language": "en", "entity": "scheme:2138006JCDVYIN6INP51", "period": "2025-01-01T00:00:00/2026-01-01T00:00:00" } }, "f0__s8__7__173-1": { "value": "Note 12
Financial expenses
DKK thousand | 2025 | 2024 |
Interest expenses on debt1 | 6,181 | 5,190 |
Fair value adjustments on securities | 6,932 | - |
Unwinding of the discount related to deferred consideration | 5,001 | 72,682 |
Adjustment of deferred consideration due to change in estimated timing of payments | 16,453 | 7,090 |
Currency adjustment deferred consideration | 2,324 | 24,899 |
Financial expenses, other | 6,958 | 8,617 |
Net foreign exchange losses | 10,038 | - |
Financial expenses | 53,887 | 118,478 |
1Interest expenses on financial liabilities measured at amortized cost
", "dimensions": { "concept": "ifrs-full:DisclosureOfInterestExpenseExplanatory", "language": "en", "entity": "scheme:2138006JCDVYIN6INP51", "period": "2025-01-01T00:00:00/2026-01-01T00:00:00" } }, "f0__s8__7__175-1": { "value": "Note 12
Financial expenses
DKK thousand | 2025 | 2024 |
Interest expenses on debt1 | 6,181 | 5,190 |
Fair value adjustments on securities | 6,932 | - |
Unwinding of the discount related to deferred consideration | 5,001 | 72,682 |
Adjustment of deferred consideration due to change in estimated timing of payments | 16,453 | 7,090 |
Currency adjustment deferred consideration | 2,324 | 24,899 |
Financial expenses, other | 6,958 | 8,617 |
Net foreign exchange losses | 10,038 | - |
Financial expenses | 53,887 | 118,478 |
1Interest expenses on financial liabilities measured at amortized cost
", "dimensions": { "concept": "ifrs-full:DisclosureOfBorrowingCostsExplanatory", "language": "en", "entity": "scheme:2138006JCDVYIN6INP51", "period": "2025-01-01T00:00:00/2026-01-01T00:00:00" } }, "f0__s8__7__179": { "value": "Accounting policiesInterest expenses are recognized in the income statement at the amounts relating to the financial year. Financial expenses also include adjustment of net present value of the deferred consideration, cf. note 24, negative value adjustments of financial instruments and securities and net currency losses.
", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForFinanceCostsExplanatory", "language": "en", "entity": "scheme:2138006JCDVYIN6INP51", "period": "2025-01-01T00:00:00/2026-01-01T00:00:00" } }, "f0__s8__7__180": { "value": "Accounting policiesInterest expenses are recognized in the income statement at the amounts relating to the financial year. Financial expenses also include adjustment of net present value of the deferred consideration, cf. note 24, negative value adjustments of financial instruments and securities and net currency losses.
", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForBorrowingCostsExplanatory", "language": "en", "entity": "scheme:2138006JCDVYIN6INP51", "period": "2025-01-01T00:00:00/2026-01-01T00:00:00" } }, "f0__s8__7__182-1": { "value": "Note 13
Tax for the year
DKK thousand | 2025 | 2024 |
Tax recognized in the income statement | ||
Current tax on profit for the year | 108,903 | 11,211 |
Adjustments to current tax for previous years | 6,406 | (3,119) |
Current tax | 115,309 | 8,092 |
Change in deferred tax | 310,268 | (24,712) |
Deferred tax | 310,268 | (24,712) |
Tax for the year recognized in the income statement | 425,577 | (16,620) |
Tax on income for the year is explained as follows: | ||
Income before company tax | 1,800,955 | 971,357 |
Calculated tax (22.0%) on income before company tax | 396,210 | 213,699 |
Tax effect on: | ||
Different tax percentage in foreign subsidiaries | 5,359 | (31,236) |
Income ()/expenses that are not taxable/deductible for tax purposes | (14,906) | (16,854) |
Special tax credit | (9,636) | (12,321) |
Change in unrealized intra-group profits | 12,460 | 40,866 |
Change in non-recognized tax asset | 29,655 | (207,655) |
Adjustments to current tax for previous years | 6,406 | (3,119) |
Paid tax in other jurisdictions | 29 | - |
Tax on income for the year | 425,577 | (16,620) |
Tax recognized in other comprehensive income | ||
Remeasurements of defined benefit plans | (6,191) | 4,171 |
Change in fair value of financial instruments entered into to hedge future cash flows | (2,124) | - |
Tax for the year recognized in other comprehensive income | (8,315) | 4,171 |
Tax recognized in equity | - | - |
Tax on income is an expense of DKK 426 million (income of DKK 17 million), corresponding to an effec-tive positive tax rate of 23,6% (negative 1.7%). The Parent Company\u2019s taxable income for 2025 is DKK 377 million (DKK 0 million) after use of tax losses carried forward.
'Income()/expenses that are not taxable/deductible for tax purposes' is primarily related Bavarian Nordic Inc. use of previously not recognized tax loss carried forward offset by deduction limitations on 'Share-based payment' and 'Management salaries' in the Parent Company.
'Special tax credit' primarily relates to the 8% step up deduction on research and development costs according to Section 8B of the Danish Tax Assessment Act.
2025 | |||||
DKK thousand | Current tax on profit for the year | Adjustments to current tax for previous years | Change in deferred tax | Total 2025 | Total 2024 |
Tax jurisdiction | |||||
Denmark | 82,990 | - | 304,949 | 388,038 | - |
Germany | 13,150 | - | - | 13,150 | 9,302 |
Switzerland | 6,897 | 471 | 5,319 | 12,688 | (24,045) |
USA | 3,654 | 5,002 | - | 8,655 | (2,375) |
Italy | 332 | 313 | - | 645 | 24 |
Spain | 139 | - | - | 139 | 310 |
Portugal | 24 | - | - | 24 | - |
Canada | 583 | 407 | - | 990 | 128 |
Sweden | 55 | - | - | 56 | 36 |
UK | 468 | 55 | - | 523 | - |
Belgium | 341 | 78 | - | 419 | - |
France | 241 | 10 | - | 251 | - |
Finland | 29 | 70 | - | - | - |
Total taxes | 108,903 | 6,406 | 310,268 | 425,578 | (16,620) |
Current tax expensed in 2025 relates mainly to the Parent Company and Bavarian Nordic GmbH. Change in recognized deferred tax in 2025 relates also mainly to the Parent Company. In 2024 the change in deferred tax related solely to Bavarian Nordic Berna GmbH.
Current tax on profit for previous years relates primarily to state taxes in Bavarian Nordic Inc.
2025 | ||||||
DKK thousand | January 1, 2025 | Adjustment to previousyear | Recognized in the income statement | Recognized in equity | Exchange rate adjust-ments on translating foreign operations | December 31, 2025 |
Product rights | (177,960) | - | (132,829) | - | - | (310,789) |
Acquired rights | (177,395) | - | (9,661) | - | - | (187,056) |
Property, plant and equipment | 35,422 | (1,058) | (4,676) | - | (365) | 29,323 |
Right-of-use assets | 454 | - | 83 | - | - | 537 |
Development projects for sale | 19,443 | - | (6,502) | - | - | 12,941 |
Unrealized intra-group profits | (49,551) | - | (12,460) | - | 10,302 | (51,709) |
Receivables | 443 | - | 65 | - | - | 508 |
Provisions | 1,540 | - | 7,040 | - | - | 8,580 |
Defined benefit plans | 25,900 | - | (2,858) | (6,191) | 274 | 17,125 |
Financial instruments | 6,425 | 154 | - | (8,703) | - | (2,124) |
Share-based payment | 45,183 | (37,308) | 2,383 | - | - | 10,258 |
Tax losses carried forward | 487,401 | (636) | (121,198) | - | (10,245) | 355,322 |
Not recognized tax asset | (217,305) | 38,848 | (29,655) | 6,579 | - | (201,533) |
Recognized deferred tax assets/(liabilities) | - | - | (310,268) | (8,315) | (34) | (318,617) |
2024 | ||||||
DKK thousand | January 1, 2024 | Adjustment to previousyear | Recognized in the income statement | Recognized in equity | Exchange rate adjust-ments on translating foreign operations | December 31, 2024 |
Product rights | (50,074) | (977) | (126,909) | - | - | (177,960) |
Acquired rights and development in progress | (111,104) | (9,686) | (56,605) | - | - | (177,395) |
Property, plant and equipment | 52,065 | (761) | (16,354) | - | 472 | 35,422 |
Right-of-use assets | 183 | - | 271 | - | - | 454 |
Development projects for sale | 25,944 | - | (6,501) | - | - | 19,443 |
Unrealized intra-group profits | (9,598) | - | (40,866) | - | 913 | (49,551) |
Receivables | 218 | - | 225 | - | - | 443 |
Provisions | 1,100 | 110 | 330 | - | - | 1,540 |
Defined benefit plans | 11,173 | - | 10,843 | 4,171 | (287) | 25,900 |
Financial instruments | (10,095) | - | (89) | 16,609 | - | 6,425 |
Share-based payment | 35,790 | - | 9,393 | - | - | 45,183 |
Tax losses carried forward | 445,010 | (15) | 43,319 | - | (913) | 487,401 |
Not recognized tax asset | (419,680) | 11,329 | 207,655 | (16,609) | - | (217,305) |
Recognized deferred tax assets/(liabilities) | (29,068) | - | 24,712 | 4,171 | 185 | - |
Deferred tax balances
Deferred tax balances relate to temporary differences between the tax base and accounting carrying amount and tax losses carried forward.
Deferred tax assets arising from temporary deductible differences and tax losses carried forward are recog-nized to the extent they are expected to be offset against future taxable income. Management estimates future income according to budgets and forecasts for the coming years.
Recognized tax losses carried forward at the beginning of 2025 relate to Bavarian Nordic A/S and the two Danish subsidiaries Aktieselskabet af 1. juni 2011 I and Aktieselskabet af 1. juni 2011 II regulated within Danish tax jurisdiction and Bavarian Nordic Berna GmbH regu-lated within the Swiss tax jurisdiction. All tax losses carried forward concerning the Swiss tax jurisdiction has been fully utilized in 2025. Recognized tax losses carried forward at the end of 2025 therefor only relate to the Danish tax jurisdiction.
The tax value of non-recognized tax losses carried forward in Bavarian Nordic A/S and the two Danish subsidiaries amounts to DKK 202 million (DKK 217 million). Tax rate used for the Danish tax jurisdiction is 22.0%.
Danish joint taxed company's right to use the tax losses carried forward is not time-limited.
Pillar II
The Bavarian Nordic Group is within scope of the Minimum Tax Act (OECD Pillar II model rules) from 2025. The Group does not recognize and disclose informa-tion about any deferred tax assets and tax liabilities arising from Pillar II income taxes, following the excep-tion stated in IAS 12. No Pillar II top-up tax costs are expected in 2025 for the Bavarian Nordic Group and no current income tax has therefore been recognized in 2025. This assessment is based on use of the Tran-sitional Safe Harbour rules and the rules pertaining to valuation allowances following article 4.4.1(c) in the OECD Pillar II model rules.
Accounting policies
Income tax for the year comprises current tax and deferred tax for the year. The part relating to the profit for the year is recognized in the income statement, and the part attributable to items in the comprehensive income is recognized in the comprehensive income statement.
The tax effect of costs that have been recognized directly in equity is recognized in equity under the rele-vant items.
Any global minimum top-up tax, which is required to be paid under Pillar II legislation, is determined as an income tax in the scope of IAS 12. The Group has applied the temporary mandatory exception from deferred tax accounting for the impacts of any top-up tax and will account for it as a current tax when it incurs.
Current tax receivable is recognized in the balance sheet under current asset. Current tax payable is recog-nized in the balance sheet under current liabilities.
Deferred tax is measured using the balance sheet liability method on all temporary differences between accounting values and tax values. Deferred tax liabili-ties arising from temporary tax differences are recog-nized in the balance sheet as a liability.
Deferred tax assets arising from temporary deductible differences and tax losses carried forward are recog-nized when it is probable that they can be realized by offsetting them against taxable temporary differences or future taxable profits. At each balance sheet date, it is assessed whether it is probable that there will be sufficient future taxable income for the deferred tax asset to be utilized.
Changes in deferred tax concerning expenses for share-based payments are generally recognized in Statement of profit or loss. However, if the amount of the tax deduction exceeds the related cumulative expense, it indicates that the tax deduction relates not only to an operating expense but also to an equity item. In such a case, the excess of the associated current or deferred tax is recognized directly in equity.
Deferred income tax is provided on temporary taxable differences arising on investments in subsidiaries, unless the parent company is able to control the timing when the deferred tax is to be realized and it is likely that the deferred tax will not be realized within the foreseeable future.
Deferred tax is calculated at the tax rates applicable on the balance sheet date for the income years in which the tax asset is expected to be utilized.
Accounting policies
Income tax for the year comprises current tax and deferred tax for the year. The part relating to the profit for the year is recognized in the income statement, and the part attributable to items in the comprehensive income is recognized in the comprehensive income statement.
The tax effect of costs that have been recognized directly in equity is recognized in equity under the rele-vant items.
Any global minimum top-up tax, which is required to be paid under Pillar II legislation, is determined as an income tax in the scope of IAS 12. The Group has applied the temporary mandatory exception from deferred tax accounting for the impacts of any top-up tax and will account for it as a current tax when it incurs.
Current tax receivable is recognized in the balance sheet under current asset. Current tax payable is recog-nized in the balance sheet under current liabilities.
Deferred tax is measured using the balance sheet liability method on all temporary differences between accounting values and tax values. Deferred tax liabili-ties arising from temporary tax differences are recog-nized in the balance sheet as a liability.
Deferred tax assets arising from temporary deductible differences and tax losses carried forward are recog-nized when it is probable that they can be realized by offsetting them against taxable temporary differences or future taxable profits. At each balance sheet date, it is assessed whether it is probable that there will be sufficient future taxable income for the deferred tax asset to be utilized.
Changes in deferred tax concerning expenses for share-based payments are generally recognized in Statement of profit or loss. However, if the amount of the tax deduction exceeds the related cumulative expense, it indicates that the tax deduction relates not only to an operating expense but also to an equity item. In such a case, the excess of the associated current or deferred tax is recognized directly in equity.
Deferred income tax is provided on temporary taxable differences arising on investments in subsidiaries, unless the parent company is able to control the timing when the deferred tax is to be realized and it is likely that the deferred tax will not be realized within the foreseeable future.
Deferred tax is calculated at the tax rates applicable on the balance sheet date for the income years in which the tax asset is expected to be utilized.
Deferred tax is measured using the balance sheet liability method on all temporary differences between accounting values and tax values. Deferred tax liabili-ties arising from temporary tax differences are recog-nized in the balance sheet as a liability.
Deferred tax assets arising from temporary deductible differences and tax losses carried forward are recog-nized when it is probable that they can be realized by offsetting them against taxable temporary differences or future taxable profits. At each balance sheet date, it is assessed whether it is probable that there will be sufficient future taxable income for the deferred tax asset to be utilized.
Changes in deferred tax concerning expenses for share-based payments are generally recognized in Statement of profit or loss. However, if the amount of the tax deduction exceeds the related cumulative expense, it indicates that the tax deduction relates not only to an operating expense but also to an equity item. In such a case, the excess of the associated current or deferred tax is recognized directly in equity.
Deferred income tax is provided on temporary taxable differences arising on investments in subsidiaries, unless the parent company is able to control the timing when the deferred tax is to be realized and it is likely that the deferred tax will not be realized within the foreseeable future.
Deferred tax is calculated at the tax rates applicable on the balance sheet date for the income years in which the tax asset is expected to be utilized.
", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForTaxesOtherThanIncomeTaxExplanatory", "language": "en", "entity": "scheme:2138006JCDVYIN6INP51", "period": "2025-01-01T00:00:00/2026-01-01T00:00:00" } }, "f0__s8__7__184": { "value": "DKK thousand | 2025 | 2024 |
Tax recognized in the income statement | ||
Current tax on profit for the year | 108,903 | 11,211 |
Adjustments to current tax for previous years | 6,406 | (3,119) |
Current tax | 115,309 | 8,092 |
Change in deferred tax | 310,268 | (24,712) |
Deferred tax | 310,268 | (24,712) |
Tax for the year recognized in the income statement | 425,577 | (16,620) |
Tax on income for the year is explained as follows: | ||
Income before company tax | 1,800,955 | 971,357 |
Calculated tax (22.0%) on income before company tax | 396,210 | 213,699 |
Tax effect on: | ||
Different tax percentage in foreign subsidiaries | 5,359 | (31,236) |
Income ()/expenses that are not taxable/deductible for tax purposes | (14,906) | (16,854) |
Special tax credit | (9,636) | (12,321) |
Change in unrealized intra-group profits | 12,460 | 40,866 |
Change in non-recognized tax asset | 29,655 | (207,655) |
Adjustments to current tax for previous years | 6,406 | (3,119) |
Paid tax in other jurisdictions | 29 | - |
Tax on income for the year | 425,577 | (16,620) |
Tax recognized in other comprehensive income | ||
Remeasurements of defined benefit plans | (6,191) | 4,171 |
Change in fair value of financial instruments entered into to hedge future cash flows | (2,124) | - |
Tax for the year recognized in other comprehensive income | (8,315) | 4,171 |
Tax recognized in equity | - | - |
Tax on income is an expense of DKK 426 million (income of DKK 17 million), corresponding to an effec-tive positive tax rate of 23,6% (negative 1.7%). The Parent Company\u2019s taxable income for 2025 is DKK 377 million (DKK 0 million) after use of tax losses carried forward.
'Income()/expenses that are not taxable/deductible for tax purposes' is primarily related Bavarian Nordic Inc. use of previously not recognized tax loss carried forward offset by deduction limitations on 'Share-based payment' and 'Management salaries' in the Parent Company.
'Special tax credit' primarily relates to the 8% step up deduction on research and development costs according to Section 8B of the Danish Tax Assessment Act.
2025 | |||||
DKK thousand | Current tax on profit for the year | Adjustments to current tax for previous years | Change in deferred tax | Total 2025 | Total 2024 |
Tax jurisdiction | |||||
Denmark | 82,990 | - | 304,949 | 388,038 | - |
Germany | 13,150 | - | - | 13,150 | 9,302 |
Switzerland | 6,897 | 471 | 5,319 | 12,688 | (24,045) |
USA | 3,654 | 5,002 | - | 8,655 | (2,375) |
Italy | 332 | 313 | - | 645 | 24 |
Spain | 139 | - | - | 139 | 310 |
Portugal | 24 | - | - | 24 | - |
Canada | 583 | 407 | - | 990 | 128 |
Sweden | 55 | - | - | 56 | 36 |
UK | 468 | 55 | - | 523 | - |
Belgium | 341 | 78 | - | 419 | - |
France | 241 | 10 | - | 251 | - |
Finland | 29 | 70 | - | - | - |
Total taxes | 108,903 | 6,406 | 310,268 | 425,578 | (16,620) |
Current tax expensed in 2025 relates mainly to the Parent Company and Bavarian Nordic GmbH. Change in recognized deferred tax in 2025 relates also mainly to the Parent Company. In 2024 the change in deferred tax related solely to Bavarian Nordic Berna GmbH.
Current tax on profit for previous years relates primarily to state taxes in Bavarian Nordic Inc.
2025 | ||||||
DKK thousand | January 1, 2025 | Adjustment to previousyear | Recognized in the income statement | Recognized in equity | Exchange rate adjust-ments on translating foreign operations | December 31, 2025 |
Product rights | (177,960) | - | (132,829) | - | - | (310,789) |
Acquired rights | (177,395) | - | (9,661) | - | - | (187,056) |
Property, plant and equipment | 35,422 | (1,058) | (4,676) | - | (365) | 29,323 |
Right-of-use assets | 454 | - | 83 | - | - | 537 |
Development projects for sale | 19,443 | - | (6,502) | - | - | 12,941 |
Unrealized intra-group profits | (49,551) | - | (12,460) | - | 10,302 | (51,709) |
Receivables | 443 | - | 65 | - | - | 508 |
Provisions | 1,540 | - | 7,040 | - | - | 8,580 |
Defined benefit plans | 25,900 | - | (2,858) | (6,191) | 274 | 17,125 |
Financial instruments | 6,425 | 154 | - | (8,703) | - | (2,124) |
Share-based payment | 45,183 | (37,308) | 2,383 | - | - | 10,258 |
Tax losses carried forward | 487,401 | (636) | (121,198) | - | (10,245) | 355,322 |
Not recognized tax asset | (217,305) | 38,848 | (29,655) | 6,579 | - | (201,533) |
Recognized deferred tax assets/(liabilities) | - | - | (310,268) | (8,315) | (34) | (318,617) |
2024 | ||||||
DKK thousand | January 1, 2024 | Adjustment to previousyear | Recognized in the income statement | Recognized in equity | Exchange rate adjust-ments on translating foreign operations | December 31, 2024 |
Product rights | (50,074) | (977) | (126,909) | - | - | (177,960) |
Acquired rights and development in progress | (111,104) | (9,686) | (56,605) | - | - | (177,395) |
Property, plant and equipment | 52,065 | (761) | (16,354) | - | 472 | 35,422 |
Right-of-use assets | 183 | - | 271 | - | - | 454 |
Development projects for sale | 25,944 | - | (6,501) | - | - | 19,443 |
Unrealized intra-group profits | (9,598) | - | (40,866) | - | 913 | (49,551) |
Receivables | 218 | - | 225 | - | - | 443 |
Provisions | 1,100 | 110 | 330 | - | - | 1,540 |
Defined benefit plans | 11,173 | - | 10,843 | 4,171 | (287) | 25,900 |
Financial instruments | (10,095) | - | (89) | 16,609 | - | 6,425 |
Share-based payment | 35,790 | - | 9,393 | - | - | 45,183 |
Tax losses carried forward | 445,010 | (15) | 43,319 | - | (913) | 487,401 |
Not recognized tax asset | (419,680) | 11,329 | 207,655 | (16,609) | - | (217,305) |
Recognized deferred tax assets/(liabilities) | (29,068) | - | 24,712 | 4,171 | 185 | - |
Deferred tax balances
Deferred tax balances relate to temporary differences between the tax base and accounting carrying amount and tax losses carried forward.
Deferred tax assets arising from temporary deductible differences and tax losses carried forward are recog-nized to the extent they are expected to be offset against future taxable income. Management estimates future income according to budgets and forecasts for the coming years.
Recognized tax losses carried forward at the beginning of 2025 relate to Bavarian Nordic A/S and the two Danish subsidiaries Aktieselskabet af 1. juni 2011 I and Aktieselskabet af 1. juni 2011 II regulated within Danish tax jurisdiction and Bavarian Nordic Berna GmbH regu-lated within the Swiss tax jurisdiction. All tax losses carried forward concerning the Swiss tax jurisdiction has been fully utilized in 2025. Recognized tax losses carried forward at the end of 2025 therefor only relate to the Danish tax jurisdiction.
The tax value of non-recognized tax losses carried forward in Bavarian Nordic A/S and the two Danish subsidiaries amounts to DKK 202 million (DKK 217 million). Tax rate used for the Danish tax jurisdiction is 22.0%.
Danish joint taxed company's right to use the tax losses carried forward is not time-limited.
Pillar II
The Bavarian Nordic Group is within scope of the Minimum Tax Act (OECD Pillar II model rules) from 2025. The Group does not recognize and disclose informa-tion about any deferred tax assets and tax liabilities arising from Pillar II income taxes, following the excep-tion stated in IAS 12. No Pillar II top-up tax costs are expected in 2025 for the Bavarian Nordic Group and no current income tax has therefore been recognized in 2025. This assessment is based on use of the Tran-sitional Safe Harbour rules and the rules pertaining to valuation allowances following article 4.4.1(c) in the OECD Pillar II model rules.
Note 14
Earnings per share (EPS)
DKK thousand | 2025 | 2024 |
Net result for the year | 1,375,378 | 987,977 |
Earnings per share of DKK 10 | 17.6 | 12.6 |
Diluted earnings per share of DKK 10 | 17.6 | 12.6 |
The weighted average number of ordinary shares for the purpose of diluted earning per share reconciles to the weighted average number of ordinary shares used in the calculation of basic earnings per share as follows: | ||
Weighted average number of ordinary shares | 78,977,265 | 78,340,169 |
Weighted average number of treasury shares | (949,330) | (236,410) |
Weighted average number of outstanding ordinary shares used in the calculation of basic earnings per share | 78,027,935 | 78,103,759 |
Average dilutive effect of outstanding warrants \u00a0under incentive schemes | - | - |
Weighted average number of outstanding ordinary shares used in the calculation of diluted earnings per share | 78,027,935 | 78,103,759 |
Outstanding warrants that may have an effect on the calculation of diluted earnings per share in the future. | ||
2025-program | 1,254,969 | - |
2024-program | 1,041,771 | 1,156,783 |
2023-program | 997,985 | 1,143,379 |
2022-program | 846,655 | 914,266 |
2021-program | 604,384 | 610,463 |
2020-program | - | 811,014 |
Outstanding warrants, cf. note 29 | 4,745,764 | 4,635,905 |
The average exercise price for outstanding warrants (DKK 235) are below the average share price of the Company for the year (191), therefore no dilution impact on the earnings per share.
", "dimensions": { "concept": "ifrs-full:DisclosureOfEarningsPerShareExplanatory", "language": "en", "entity": "scheme:2138006JCDVYIN6INP51", "period": "2025-01-01T00:00:00/2026-01-01T00:00:00" } }, "f0__s8__7__194-1": { "value": "Note 15
Intangible assets
Key accounting estimates
Product rights
When determining the amortization period for acquired product rights, Management need to make an assessment of expected useful economic life. In the assessment Management take among other things the following components into consideration: The maturity of the products acquired, development in the market the acquired products are targeting, the current competitors, clinical development of new competing products and entry barriers to the market due to advanced production technology. Straight-line amortization reflects the use and impairment of the product rights.
Management continuously updates the valuation model used when acquiring the product rights from GSK and Emergent BioSolutions to assess the value creation expected from the acquisitions. The valuation are based on latest budgets and forecasts and assessment of useful life, taking into consideration e.g. market share, competitors, improvements in production efficiency. The latest update of the valuation models show values above the net present value of the purchase prices, hence there is no indications of impairment.
Key accounting judgments
Management has made the following accounting judg-ments which significantly affect the amounts recog-nized in the consolidated financial statements:
Acquired rights and development in progress
Under the Group\u2019s accounting policies and in accordance with common industry practice, development costs are generally expensed in the year they occur. This approach is taken due to the uncertainty surrounding the future benefits of these costs until commercial approval is obtained.
2025 | ||||||
DKK thousand | Product rights | Acquired rights and development in progress | Developed production process | Software | Other intangible assets in progress | Total |
Costs as of January 1, 2025 | 6,094,710 | 1,286,782 | 374,857 | 130,894 | 18,694 | 7,905,937 |
Additions | - | - | - | 2,546 | 46,217 | 48,763 |
Transfer | 1,286,782 | (1,286,782) | - | 12,442 | (12,442) | - |
Transfer from property, plant and equipment | - | - | - | - | 8,399 | 8,399 |
Disposals | - | - | - | (34,873) | (1,898) | (36,771) |
Exchange rate adjustments | - | - | - | (231) | (205) | (436) |
Cost as of December 31, 2025 | 7,381,492 | - | 374,857 | 110,778 | 58,765 | 7,925,892 |
Amortization and impairment losses as of January 1, 2025 | 1,434,284 | - | 31,238 | 109,523 | - | 1,575,045 |
Amortization | 376,667 | - | 37,486 | 11,799 | - | 425,952 |
Transfer to/from property, plant and equipment | - | - | - | 128 | - | 128 |
Disposals | - | - | - | (34,623) | - | (34,623) |
Exchange rate adjustments | - | - | - | (260) | - | (260) |
Amortization and impairment losses as of December 31, 2025 | 1,810,951 | - | 68,724 | 86,567 | - | 1,966,242 |
Carrying amount as of December 31, 2025 | 5,570,541 | - | 306,133 | 24,211 | 58,765 | 5,959,650 |
Geographical split of intangible assets - 2025 | ||||||
Denmark | 5,955,158 | |||||
Germany | 1,273 | |||||
USA | - | |||||
Switzerland | 3,219 | |||||
Total intangible assets | 5,959,650 |
Product rights
December 31, 2019 the Company acquired the product rights to two commercial products owned by GSK - Rabipur/RabAvert and Encepur.
The products have been on the market for more than 20 years. There is no need to further develop the prod-ucts. Management assesses that it will require up to 10 years of clinical development for competitors to bring a new competing product to the market likewise the production process required to produce these products is highly complex. Based on these factors Management assesses that the acquired product rights should be amortized over 20 years.
In June 2024, based on higher-than-expected sales of Rabipur and Encepur during the second quarter of 2024, Management assessed it likely that Bavarian Nordic would reach the trigger for the sales milestone included in the Asset Purchase Agreement concluded in 2019 and this was finally confirmed by end of July 2024. The sales milestone of DKK 186 million was recognized as an addition to the product rights and the deferred consideration in 2024.
In May 2023, the Company concluded a Purchase and Sale Agreement with Emergent BioSolutions. The agreement included acquisition of product rights to two commercial travel vaccines - Vivotif and Vaxchora.
Vivotif and Vaxchora were first licensed in the US in 1989 and 2016 respectively. Vaccines have historically shown to have a long lifespan due to stringent regu-latory requirements, high research and development
costs and a complex manufacturing process. Vaxchora is targeting a market that has a relatively low market value, which further lowers the chance of competitors entering the market and taking significant market shares. Based on these factors Management assesses that the Vaxchora product right should be amortized over 20 years.
Vivotif was developed more than 30 years ago and the market is larger than for Vaxchora. Therefore, the risk of competition is also deemed higher, hence the amorti-zation period is assessed to be 10 years.
The acquisition price for the two product rights consists of an upfront payment of DKK 312 million for Vivotif and DKK 137 million for Vaxchora.
The Purchase and Sale Agreement also includes an earnout payment starting at USD 30 million. The earnout payment relates to sale of Vivotif and Vaxchora. As per December 31, 2025 Management does not judge the sales milestone to be probable and there-fore the earnout payment has not been recognized as either part of the project rights nor the deferred consid-eration.
Acquired rights and development in progress
The Purchase and Sale Agreement concluded with Emergent BioSolutions included acquisition of a late-stage vaccine candidate for Chikungunya virus. The initial acquisition price amounted to DKK 788 million. No further cost will be capitalized.
The agreement with Emergent BioSolutions also included milestone payments totaling USD 80 million related to submission and approval of Biologics License Application (BLA) to FDA and Marketing Authorization Application to EMA for the chikungunya development asset.
At initial recognition the net present value of probable future development milestone payments to Emergent BioSolutions Inc. amounted to DKK 499 million and was recognized as deferred consideration (note 24).
Developed production processes
Developed production processes consist of the the as-is technology transfer from GSK to Bavarian Nordic of the manufacturing process for Rabipur/RabAvert and Encepur. The Company has incurred material costs in terms of internal labor and consultancy to handle the technology transfer and has gained crucial knowledge about the manufacturing process. These costs are capitalized as an intangible asset. As per December 31, 2025 the capitalized costs amounts to DKK 306 million (DKK 345 million).
Intangible assets in progress
Other intable assets in progress relates to IT invest-ments.
2025 | |||
DKK thousand | Acquistion price | Carrying amount December 31, 2025 | Remaining amortization period |
Rabipur/RabAvert | 3,252,110 | 2,299,212 | 14 years |
Encepur | 2,393,023 | 1,690,273 | 14 years |
Vivotif | 312,208 | 228,539 | 7.5 years |
Vaxchora | 137,369 | 119,354 | 17.5 years |
Vimkunya | 1,286,782 | 1,233,163 | 19.2 years |
Total product rights | 7,381,492 | 5,570,541 | |
2024 | |||
DKK thousand | Acquistion price | Carrying amount December 31, 2024 | Remaining amortization period |
Rabipur/RabAvert | 3,252,110 | 2,463,437 | 15 years |
Encepur | 2,393,023 | 1,811,007 | 15 years |
Vivotif | 312,208 | 259,759 | 8.5 years |
Vaxchora | 137,369 | 126,223 | 18.5 years |
Total product rights | 6,094,710 | 4,660,426 |
2024 | ||||||
DKK thousand | Product rights | Acquired rights and development in progress | Developed Production Process | Software | Other intangible assets in progress | Total |
Costs as of January 1, 2024 | 5,908,277 | 2,690,013 | - | 114,958 | 417,326 | 9,130,574 |
Additions | 186,433 | - | - | 233 | 21,259 | 207,925 |
Transfer | - | - | 374,857 | 17,902 | (392,759) | - |
Transfer to/from property, plant and equipment | - | - | - | (2,265) | (884) | (3,149) |
Disposals | - | (1,403,264) | - | - | (26,224) | (1,429,488) |
Exchange rate adjustments | - | 33 | - | 66 | (24) | 75 |
Cost as of December 31, 2024 | 6,094,710 | 1,286,782 | 374,857 | 130,894 | 18,694 | 7,905,937 |
Amortization and impairment losses as of January 1, 2024 | 1,116,835 | 1,403,264 | - | 102,515 | 26,224 | 2,648,838 |
Amortization | 317,449 | - | 31,238 | 8,120 | - | 356,807 |
Transfer | - | - | - | (1,231) | - | (1,231) |
Disposals | - | (1,403,264) | - | - | (26,224) | (1,429,488) |
Exchange rate adjustments | - | - | - | 119 | - | 119 |
Amortization and impairment losses as of December 31, 2024 | 1,434,284 | - | 31,238 | 109,523 | - | 1,575,045 |
Carrying amount as of December 31, 2024 | 4,660,426 | 1,286,782 | 343,619 | 21,371 | 18,694 | 6,330,892 |
Geographical split of intangible assets \u2013 2024 | ||||||
Denmark | 6,325,789 | |||||
Germany | 685 | |||||
USA | 1,838 | |||||
Switzerland | 2,580 | |||||
Total intangible assets | 6,330,892 |
Note 31
Related party transactions
The Group Management and Board of Directors of Bavarian Nordic A/S are considered related parties.
Besides the remuneration of the Board of Directors and the Executive Management, cf. note 8, and the share-based payments, cf. note 29, there are no transactions with related parties.
Transactions with subsidiaries are eliminated in the consolidated financial statements, in accordance with the accounting policies.
Note 15
Intangible assets
Key accounting estimates
Product rights
When determining the amortization period for acquired product rights, Management need to make an assessment of expected useful economic life. In the assessment Management take among other things the following components into consideration: The maturity of the products acquired, development in the market the acquired products are targeting, the current competitors, clinical development of new competing products and entry barriers to the market due to advanced production technology. Straight-line amortization reflects the use and impairment of the product rights.
Management continuously updates the valuation model used when acquiring the product rights from GSK and Emergent BioSolutions to assess the value creation expected from the acquisitions. The valuation are based on latest budgets and forecasts and assessment of useful life, taking into consideration e.g. market share, competitors, improvements in production efficiency. The latest update of the valuation models show values above the net present value of the purchase prices, hence there is no indications of impairment.
Key accounting judgments
Management has made the following accounting judg-ments which significantly affect the amounts recog-nized in the consolidated financial statements:
Acquired rights and development in progress
Under the Group\u2019s accounting policies and in accordance with common industry practice, development costs are generally expensed in the year they occur. This approach is taken due to the uncertainty surrounding the future benefits of these costs until commercial approval is obtained.
2025 | ||||||
DKK thousand | Product rights | Acquired rights and development in progress | Developed production process | Software | Other intangible assets in progress | Total |
Costs as of January 1, 2025 | 6,094,710 | 1,286,782 | 374,857 | 130,894 | 18,694 | 7,905,937 |
Additions | - | - | - | 2,546 | 46,217 | 48,763 |
Transfer | 1,286,782 | (1,286,782) | - | 12,442 | (12,442) | - |
Transfer from property, plant and equipment | - | - | - | - | 8,399 | 8,399 |
Disposals | - | - | - | (34,873) | (1,898) | (36,771) |
Exchange rate adjustments | - | - | - | (231) | (205) | (436) |
Cost as of December 31, 2025 | 7,381,492 | - | 374,857 | 110,778 | 58,765 | 7,925,892 |
Amortization and impairment losses as of January 1, 2025 | 1,434,284 | - | 31,238 | 109,523 | - | 1,575,045 |
Amortization | 376,667 | - | 37,486 | 11,799 | - | 425,952 |
Transfer to/from property, plant and equipment | - | - | - | 128 | - | 128 |
Disposals | - | - | - | (34,623) | - | (34,623) |
Exchange rate adjustments | - | - | - | (260) | - | (260) |
Amortization and impairment losses as of December 31, 2025 | 1,810,951 | - | 68,724 | 86,567 | - | 1,966,242 |
Carrying amount as of December 31, 2025 | 5,570,541 | - | 306,133 | 24,211 | 58,765 | 5,959,650 |
Geographical split of intangible assets - 2025 | ||||||
Denmark | 5,955,158 | |||||
Germany | 1,273 | |||||
USA | - | |||||
Switzerland | 3,219 | |||||
Total intangible assets | 5,959,650 |
Product rights
December 31, 2019 the Company acquired the product rights to two commercial products owned by GSK - Rabipur/RabAvert and Encepur.
The products have been on the market for more than 20 years. There is no need to further develop the prod-ucts. Management assesses that it will require up to 10 years of clinical development for competitors to bring a new competing product to the market likewise the production process required to produce these products is highly complex. Based on these factors Management assesses that the acquired product rights should be amortized over 20 years.
In June 2024, based on higher-than-expected sales of Rabipur and Encepur during the second quarter of 2024, Management assessed it likely that Bavarian Nordic would reach the trigger for the sales milestone included in the Asset Purchase Agreement concluded in 2019 and this was finally confirmed by end of July 2024. The sales milestone of DKK 186 million was recognized as an addition to the product rights and the deferred consideration in 2024.
In May 2023, the Company concluded a Purchase and Sale Agreement with Emergent BioSolutions. The agreement included acquisition of product rights to two commercial travel vaccines - Vivotif and Vaxchora.
Vivotif and Vaxchora were first licensed in the US in 1989 and 2016 respectively. Vaccines have historically shown to have a long lifespan due to stringent regu-latory requirements, high research and development
costs and a complex manufacturing process. Vaxchora is targeting a market that has a relatively low market value, which further lowers the chance of competitors entering the market and taking significant market shares. Based on these factors Management assesses that the Vaxchora product right should be amortized over 20 years.
Vivotif was developed more than 30 years ago and the market is larger than for Vaxchora. Therefore, the risk of competition is also deemed higher, hence the amorti-zation period is assessed to be 10 years.
The acquisition price for the two product rights consists of an upfront payment of DKK 312 million for Vivotif and DKK 137 million for Vaxchora.
The Purchase and Sale Agreement also includes an earnout payment starting at USD 30 million. The earnout payment relates to sale of Vivotif and Vaxchora. As per December 31, 2025 Management does not judge the sales milestone to be probable and there-fore the earnout payment has not been recognized as either part of the project rights nor the deferred consid-eration.
Acquired rights and development in progress
The Purchase and Sale Agreement concluded with Emergent BioSolutions included acquisition of a late-stage vaccine candidate for Chikungunya virus. The initial acquisition price amounted to DKK 788 million. No further cost will be capitalized.
The agreement with Emergent BioSolutions also included milestone payments totaling USD 80 million related to submission and approval of Biologics License Application (BLA) to FDA and Marketing Authorization Application to EMA for the chikungunya development asset.
At initial recognition the net present value of probable future development milestone payments to Emergent BioSolutions Inc. amounted to DKK 499 million and was recognized as deferred consideration (note 24).
Developed production processes
Developed production processes consist of the the as-is technology transfer from GSK to Bavarian Nordic of the manufacturing process for Rabipur/RabAvert and Encepur. The Company has incurred material costs in terms of internal labor and consultancy to handle the technology transfer and has gained crucial knowledge about the manufacturing process. These costs are capitalized as an intangible asset. As per December 31, 2025 the capitalized costs amounts to DKK 306 million (DKK 345 million).
Intangible assets in progress
Other intable assets in progress relates to IT invest-ments.
2025 | |||
DKK thousand | Acquistion price | Carrying amount December 31, 2025 | Remaining amortization period |
Rabipur/RabAvert | 3,252,110 | 2,299,212 | 14 years |
Encepur | 2,393,023 | 1,690,273 | 14 years |
Vivotif | 312,208 | 228,539 | 7.5 years |
Vaxchora | 137,369 | 119,354 | 17.5 years |
Vimkunya | 1,286,782 | 1,233,163 | 19.2 years |
Total product rights | 7,381,492 | 5,570,541 | |
2024 | |||
DKK thousand | Acquistion price | Carrying amount December 31, 2024 | Remaining amortization period |
Rabipur/RabAvert | 3,252,110 | 2,463,437 | 15 years |
Encepur | 2,393,023 | 1,811,007 | 15 years |
Vivotif | 312,208 | 259,759 | 8.5 years |
Vaxchora | 137,369 | 126,223 | 18.5 years |
Total product rights | 6,094,710 | 4,660,426 |
2024 | ||||||
DKK thousand | Product rights | Acquired rights and development in progress | Developed Production Process | Software | Other intangible assets in progress | Total |
Costs as of January 1, 2024 | 5,908,277 | 2,690,013 | - | 114,958 | 417,326 | 9,130,574 |
Additions | 186,433 | - | - | 233 | 21,259 | 207,925 |
Transfer | - | - | 374,857 | 17,902 | (392,759) | - |
Transfer to/from property, plant and equipment | - | - | - | (2,265) | (884) | (3,149) |
Disposals | - | (1,403,264) | - | - | (26,224) | (1,429,488) |
Exchange rate adjustments | - | 33 | - | 66 | (24) | 75 |
Cost as of December 31, 2024 | 6,094,710 | 1,286,782 | 374,857 | 130,894 | 18,694 | 7,905,937 |
Amortization and impairment losses as of January 1, 2024 | 1,116,835 | 1,403,264 | - | 102,515 | 26,224 | 2,648,838 |
Amortization | 317,449 | - | 31,238 | 8,120 | - | 356,807 |
Transfer | - | - | - | (1,231) | - | (1,231) |
Disposals | - | (1,403,264) | - | - | (26,224) | (1,429,488) |
Exchange rate adjustments | - | - | - | 119 | - | 119 |
Amortization and impairment losses as of December 31, 2024 | 1,434,284 | - | 31,238 | 109,523 | - | 1,575,045 |
Carrying amount as of December 31, 2024 | 4,660,426 | 1,286,782 | 343,619 | 21,371 | 18,694 | 6,330,892 |
Geographical split of intangible assets \u2013 2024 | ||||||
Denmark | 6,325,789 | |||||
Germany | 685 | |||||
USA | 1,838 | |||||
Switzerland | 2,580 | |||||
Total intangible assets | 6,330,892 |
Note 16
Property, plant and equipment
2025 | ||||||
DKK thousand | Land and buildings | Leasehold improvement | Plant and machinery | Other fixtures and fittings, other plant and equipment | Assets under construction | Total |
Costs as of January 1, 2025 | 1,274,045 | 47,385 | 719,675 | 916,272 | 159,660 | 3,117,037 |
Additions | 5,040 | - | 2,844 | 16,161 | 181,243 | 205,288 |
Transfer | 15,730 | 4,108 | 45,120 | 24,365 | (89,323) | - |
Transfer from intangible assets | 347 | - | - | - | (8,746) | (8,399) |
Disposals | (359) | - | (39,016) | (22,904) | (11,012) | (73,291) |
Exchange rate adjustments | 3,916 | 61 | 1,089 | (2,807) | 1,015 | 3,274 |
Cost as of December 31, 2025 | 1,298,719 | 51,554 | 729,712 | 931,087 | 232,837 | 3,243,909 |
Depreciation and impairment losses as of January 1,2025 | 335,039 | 29,069 | 302,465 | 289,896 | - | 956,469 |
Depreciation | 56,596 | 9,612 | 79,565 | 96,199 | - | 241,972 |
Transfer from intangible assets | 11 | - | - | (139) | - | (128) |
Impairment losses | 601 | - | 23,048 | 107 | - | 23,756 |
Disposals | (325) | - | (31,793) | (22,678) | - | (54,796) |
Exchange rate adjustments | 754 | 23 | 7,749 | (2,628) | - | 5,898 |
Depreciation and impairment losses as of December 31, 2025 | 392,676 | 38,704 | 381,034 | 360,757 | - | 1,173,171 |
Carrying amount as of December 31, 2025 | 906,043 | 12,850 | 348,678 | 570,330 | 232,837 | 2,070,738 |
Geographical split of property, plant and equipment \u2013 2025 | ||||||
Denmark | 1,360,407 | |||||
Germany | 59,617 | |||||
USA | 833 | |||||
Switzerland | 649,881 | |||||
Total property, plant and equipment | 2,070,738 |
Mortgage loans of DKK 13 million are secured by mort-gage deed totaling DKK 32 million on the property B\u00f8geskovvej 9/Hejreskovvej 10A, Kvistgaard. In addi-tion, as of December 31, 2025, mortgage deeds for a total of DKK 75 million are issued. The carrying amount of assets mortgaged in security of mortgage loans is DKK 1,255 million (land and buildings: DKK 906 million; plant and machinery: DKK 349 million
2024 | ||||||
DKK thousand | Land and buildings | Leasehold improvement | Plant and machinery | Other fixtures and fittings, other plant and equipment | Assets under construction | Total |
Costs as of January 1, 2024 | 1,268,062 | 47,036 | 646,707 | 889,215 | 206,721 | 3,057,741 |
Additions | - | - | 1,498 | 5,189 | 72,825 | 79,512 |
Transfer | 11,127 | 1,516 | 71,763 | 34,526 | (118,932) | - |
Transfer from intangible assets | - | - | 3,149 | - | - | 3,149 |
Disposals | - | (1,271) | (2,137) | (11,243) | (538) | (15,189) |
Exchange rate adjustments | (5,144) | 104 | (1,305) | (1,415) | (416) | (8,176) |
Cost as of December 31, 2024 | 1,274,045 | 47,385 | 719,675 | 916,272 | 159,660 | 3,117,037 |
Depreciation and impairment losses as of January 1,2024 | 281,049 | 21,989 | 234,033 | 193,155 | - | 730,226 |
Depreciation | 54,136 | 7,394 | 67,637 | 92,301 | - | 221,468 |
Transfer | - | - | 1,529 | (1,529) | - | - |
Transfer from intangible assets | - | - | 1,231 | - | - | 1,231 |
Impairment losses | - | - | - | 12,044 | - | 12,044 |
Disposals | - | (337) | (2,019) | (5,198) | - | (7,554) |
Exchange rate adjustments | (146) | 23 | 54 | (877) | - | (946) |
Depreciation and impairment losses as of December 31, 2024 | 335,039 | 29,069 | 302,465 | 289,896 | - | 956,469 |
Carrying amount as of December 31, 2024 | 939,006 | 18,316 | 417,210 | 626,376 | 159,660 | 2,160,568 |
Geographical split of property, plant and equipment \u2013 2024 | ||||||
Denmark | 1,509,265 | |||||
Germany | 47,818 | |||||
USA | 18,283 | |||||
Switzerland | 585,202 | |||||
Total property, plant and equipment | 2,160,568 |
Mortgage loans of DKK 15 million are secured by mort-gage deed totaling DKK 32 million on the property B\u00f8geskovvej 9/Hejreskovvej 10A, Kvistgaard. In addi-tion, as of December 31, 2024, mortgage deeds for a total of DKK 75.0 million have been issued. The carrying amount of assets mortgaged in security of mortgage loans is DKK 1,356 million (land and buildings: DKK 939 million; plant and machinery: DKK 417 million).
Note 17
Right-of-use assets
2025 | ||||
DKK thousand | Rent facility | Car leasing | Equipment | Total |
Right-of-use assets as of January 1, 2025 | 72,696 | 8,182 | 1,021 | 81,899 |
Additions | 29,217 | 14,665 | - | 43,882 |
Modifications | 2,684 | (1,043) | - | 1,641 |
Disposals | - | (1,205) | (2,316) | (3,521) |
Depreciation | (21,107) | (6,114) | (799) | (28,020) |
Reversal depreciation | - | 1,205 | 2,316 | 3,521 |
Exchange rate adjustments | (947) | (32) | - | (979) |
Right-of-use assets as of December 31, 2025 | 82,543 | 15,658 | 222 | 98,423 |
2024 | ||||
DKK thousand | Rent facility | Car leasing | Equipment | Total |
Impact from applying IFRS 16 as of January 1, 2024 | 112,867 | 11,154 | 1,149 | 125,170 |
Additions | 1,307 | 4,415 | 532 | 6,254 |
Modifications | 20,441 | (56) | (31) | 20,354 |
Disposals | (15,488) | (4,373) | (307) | (20,168) |
Depreciation | (36,665) | (6,805) | (629) | (44,099) |
Impairment | (26,431) | - | - | (26,431) |
Reversal depreciation | 15,488 | 3,813 | 307 | 19,608 |
Exchange rate adjustments | 1,177 | 34 | - | 1,211 |
Right-of-use assets as of December 31, 2024 | 72,696 | 8,182 | 1,021 | 81,899 |
DKK thousand | 2025 | 2024 | ||
Amounts included in the income statement | ||||
Interest expense leases | 5,214 | 4,737 | ||
Depreciation recognized on right-of-use assets | 28,020 | 44,099 | ||
Impairment recognized on right-of-use assets | - | 26,431 |
Accounting policies
Intangible assets are measured at historic cost less accumulated amortization and impairment losses. Cost of acquired product rights are measured at cash consid-eration and present value of any deferred payments for those rights. Furthermore costs of acquired product rights include transaction costs that are directly attrib-utable to the acqusition. Internal development projects that meet the requirements for recognition as intan-gible assets are measured at direct cost relating to the development projects
Amortization is provided on a straight-line basis over the useful economic lives of the assets.
The useful lives of acquired product rights are esti-mated to be 10-20 years and software is estimated to be 3-5 years.
Amortization of acquired product rights is recognized as part of cost of goods sold under production costs.
Impairment
The carrying amounts of intangible assets carried at cost or amortized cost are tested at least annually to determine whether there are indications of any impair-ment in excess of that expressed in normal amortiza-tion. If that is the case, the asset is written down to the recoverable amount, which is the higher of its fair value less costs to sell and its value in use. Impairment losses on intangible assets are recognized under the same line item as amortization of the assets.
For development projects in progress, the recoverable amount is assessed annually, regardless of whether any indications of impairment have been found.
Accounting policies
Intangible assets are measured at historic cost less accumulated amortization and impairment losses. Cost of acquired product rights are measured at cash consid-eration and present value of any deferred payments for those rights. Furthermore costs of acquired product rights include transaction costs that are directly attrib-utable to the acqusition. Internal development projects that meet the requirements for recognition as intan-gible assets are measured at direct cost relating to the development projects
Amortization is provided on a straight-line basis over the useful economic lives of the assets.
The useful lives of acquired product rights are esti-mated to be 10-20 years and software is estimated to be 3-5 years.
Amortization of acquired product rights is recognized as part of cost of goods sold under production costs.
Impairment
The carrying amounts of intangible assets carried at cost or amortized cost are tested at least annually to determine whether there are indications of any impair-ment in excess of that expressed in normal amortiza-tion. If that is the case, the asset is written down to the recoverable amount, which is the higher of its fair value less costs to sell and its value in use. Impairment losses on intangible assets are recognized under the same line item as amortization of the assets.
For development projects in progress, the recoverable amount is assessed annually, regardless of whether any indications of impairment have been found.
Accounting policies
Property, plant and equipment include land and build-ings, production equipment, leasehold improvements, office and IT equipment and laboratory equipment and is measured at cost less accumulated depreciation and impairment losses.
Cost includes the costs directly attributable to the purchase of the asset, until the asset is ready for use. For assets constructed by the Group cost includes mate-rials, components, third-party suppliers and labor.
Borrowing costs directly attributable to the construction of property, plant and equipment are included in cost. Other borrowing costs are recognized in the income statement.
Depreciation is charged over the expected economic lives of the assets, and the depreciation methods, expected lives and residual values are reassessed indi-vidually for the assets at the end of each financial year. Assets are depreciated on a straightline basis over their estimated useful lives as follows:
Buildings10-20 yearsInstallations5-15 yearsLeasehold improvements5 yearsOffice and IT equipment3-5 yearsLaboratory equipment5-10 yearsProduction equipment3-15 years
Management reviews the estimated useful lives of material property, plant and equipment at the end of each financial year.
Impairment
The carrying amounts of property, plant and equipment carried at cost or amortized cost are tested annually to determine whether there are indications of any impair-ment in excess of that expressed in normal deprecia-tion. If that is the case, the asset is written down to the recoverable amount, which is the higher of its fair value less costs to sell and its value in use. Impairment losses on property, plant and equipment are recognized under the same line item as depreciation of the assets.
Accounting policies
Intangible assets are measured at historic cost less accumulated amortization and impairment losses. Cost of acquired product rights are measured at cash consid-eration and present value of any deferred payments for those rights. Furthermore costs of acquired product rights include transaction costs that are directly attrib-utable to the acqusition. Internal development projects that meet the requirements for recognition as intan-gible assets are measured at direct cost relating to the development projects
Amortization is provided on a straight-line basis over the useful economic lives of the assets.
The useful lives of acquired product rights are esti-mated to be 10-20 years and software is estimated to be 3-5 years.
Amortization of acquired product rights is recognized as part of cost of goods sold under production costs.
", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForIntangibleAssetsAndGoodwillExplanatory", "language": "en", "entity": "scheme:2138006JCDVYIN6INP51", "period": "2025-01-01T00:00:00/2026-01-01T00:00:00" } }, "f0__s8__7__210-1": { "value": "Note 16
Property, plant and equipment
2025 | ||||||
DKK thousand | Land and buildings | Leasehold improvement | Plant and machinery | Other fixtures and fittings, other plant and equipment | Assets under construction | Total |
Costs as of January 1, 2025 | 1,274,045 | 47,385 | 719,675 | 916,272 | 159,660 | 3,117,037 |
Additions | 5,040 | - | 2,844 | 16,161 | 181,243 | 205,288 |
Transfer | 15,730 | 4,108 | 45,120 | 24,365 | (89,323) | - |
Transfer from intangible assets | 347 | - | - | - | (8,746) | (8,399) |
Disposals | (359) | - | (39,016) | (22,904) | (11,012) | (73,291) |
Exchange rate adjustments | 3,916 | 61 | 1,089 | (2,807) | 1,015 | 3,274 |
Cost as of December 31, 2025 | 1,298,719 | 51,554 | 729,712 | 931,087 | 232,837 | 3,243,909 |
Depreciation and impairment losses as of January 1,2025 | 335,039 | 29,069 | 302,465 | 289,896 | - | 956,469 |
Depreciation | 56,596 | 9,612 | 79,565 | 96,199 | - | 241,972 |
Transfer from intangible assets | 11 | - | - | (139) | - | (128) |
Impairment losses | 601 | - | 23,048 | 107 | - | 23,756 |
Disposals | (325) | - | (31,793) | (22,678) | - | (54,796) |
Exchange rate adjustments | 754 | 23 | 7,749 | (2,628) | - | 5,898 |
Depreciation and impairment losses as of December 31, 2025 | 392,676 | 38,704 | 381,034 | 360,757 | - | 1,173,171 |
Carrying amount as of December 31, 2025 | 906,043 | 12,850 | 348,678 | 570,330 | 232,837 | 2,070,738 |
Geographical split of property, plant and equipment \u2013 2025 | ||||||
Denmark | 1,360,407 | |||||
Germany | 59,617 | |||||
USA | 833 | |||||
Switzerland | 649,881 | |||||
Total property, plant and equipment | 2,070,738 |
Mortgage loans of DKK 13 million are secured by mort-gage deed totaling DKK 32 million on the property B\u00f8geskovvej 9/Hejreskovvej 10A, Kvistgaard. In addi-tion, as of December 31, 2025, mortgage deeds for a total of DKK 75 million are issued. The carrying amount of assets mortgaged in security of mortgage loans is DKK 1,255 million (land and buildings: DKK 906 million; plant and machinery: DKK 349 million
2024 | ||||||
DKK thousand | Land and buildings | Leasehold improvement | Plant and machinery | Other fixtures and fittings, other plant and equipment | Assets under construction | Total |
Costs as of January 1, 2024 | 1,268,062 | 47,036 | 646,707 | 889,215 | 206,721 | 3,057,741 |
Additions | - | - | 1,498 | 5,189 | 72,825 | 79,512 |
Transfer | 11,127 | 1,516 | 71,763 | 34,526 | (118,932) | - |
Transfer from intangible assets | - | - | 3,149 | - | - | 3,149 |
Disposals | - | (1,271) | (2,137) | (11,243) | (538) | (15,189) |
Exchange rate adjustments | (5,144) | 104 | (1,305) | (1,415) | (416) | (8,176) |
Cost as of December 31, 2024 | 1,274,045 | 47,385 | 719,675 | 916,272 | 159,660 | 3,117,037 |
Depreciation and impairment losses as of January 1,2024 | 281,049 | 21,989 | 234,033 | 193,155 | - | 730,226 |
Depreciation | 54,136 | 7,394 | 67,637 | 92,301 | - | 221,468 |
Transfer | - | - | 1,529 | (1,529) | - | - |
Transfer from intangible assets | - | - | 1,231 | - | - | 1,231 |
Impairment losses | - | - | - | 12,044 | - | 12,044 |
Disposals | - | (337) | (2,019) | (5,198) | - | (7,554) |
Exchange rate adjustments | (146) | 23 | 54 | (877) | - | (946) |
Depreciation and impairment losses as of December 31, 2024 | 335,039 | 29,069 | 302,465 | 289,896 | - | 956,469 |
Carrying amount as of December 31, 2024 | 939,006 | 18,316 | 417,210 | 626,376 | 159,660 | 2,160,568 |
Geographical split of property, plant and equipment \u2013 2024 | ||||||
Denmark | 1,509,265 | |||||
Germany | 47,818 | |||||
USA | 18,283 | |||||
Switzerland | 585,202 | |||||
Total property, plant and equipment | 2,160,568 |
Mortgage loans of DKK 15 million are secured by mort-gage deed totaling DKK 32 million on the property B\u00f8geskovvej 9/Hejreskovvej 10A, Kvistgaard. In addi-tion, as of December 31, 2024, mortgage deeds for a total of DKK 75.0 million have been issued. The carrying amount of assets mortgaged in security of mortgage loans is DKK 1,356 million (land and buildings: DKK 939 million; plant and machinery: DKK 417 million).
Accounting policies
Property, plant and equipment include land and build-ings, production equipment, leasehold improvements, office and IT equipment and laboratory equipment and is measured at cost less accumulated depreciation and impairment losses.
Cost includes the costs directly attributable to the purchase of the asset, until the asset is ready for use. For assets constructed by the Group cost includes mate-rials, components, third-party suppliers and labor.
Borrowing costs directly attributable to the construction of property, plant and equipment are included in cost. Other borrowing costs are recognized in the income statement.
Depreciation is charged over the expected economic lives of the assets, and the depreciation methods, expected lives and residual values are reassessed indi-vidually for the assets at the end of each financial year. Assets are depreciated on a straightline basis over their estimated useful lives as follows:
Buildings10-20 yearsInstallations5-15 yearsLeasehold improvements5 yearsOffice and IT equipment3-5 yearsLaboratory equipment5-10 yearsProduction equipment3-15 years
Management reviews the estimated useful lives of material property, plant and equipment at the end of each financial year.
Impairment
The carrying amounts of property, plant and equipment carried at cost or amortized cost are tested annually to determine whether there are indications of any impair-ment in excess of that expressed in normal deprecia-tion. If that is the case, the asset is written down to the recoverable amount, which is the higher of its fair value less costs to sell and its value in use. Impairment losses on property, plant and equipment are recognized under the same line item as depreciation of the assets.
Note 17
Right-of-use assets
2025 | ||||
DKK thousand | Rent facility | Car leasing | Equipment | Total |
Right-of-use assets as of January 1, 2025 | 72,696 | 8,182 | 1,021 | 81,899 |
Additions | 29,217 | 14,665 | - | 43,882 |
Modifications | 2,684 | (1,043) | - | 1,641 |
Disposals | - | (1,205) | (2,316) | (3,521) |
Depreciation | (21,107) | (6,114) | (799) | (28,020) |
Reversal depreciation | - | 1,205 | 2,316 | 3,521 |
Exchange rate adjustments | (947) | (32) | - | (979) |
Right-of-use assets as of December 31, 2025 | 82,543 | 15,658 | 222 | 98,423 |
2024 | ||||
DKK thousand | Rent facility | Car leasing | Equipment | Total |
Impact from applying IFRS 16 as of January 1, 2024 | 112,867 | 11,154 | 1,149 | 125,170 |
Additions | 1,307 | 4,415 | 532 | 6,254 |
Modifications | 20,441 | (56) | (31) | 20,354 |
Disposals | (15,488) | (4,373) | (307) | (20,168) |
Depreciation | (36,665) | (6,805) | (629) | (44,099) |
Impairment | (26,431) | - | - | (26,431) |
Reversal depreciation | 15,488 | 3,813 | 307 | 19,608 |
Exchange rate adjustments | 1,177 | 34 | - | 1,211 |
Right-of-use assets as of December 31, 2024 | 72,696 | 8,182 | 1,021 | 81,899 |
DKK thousand | 2025 | 2024 | ||
Amounts included in the income statement | ||||
Interest expense leases | 5,214 | 4,737 | ||
Depreciation recognized on right-of-use assets | 28,020 | 44,099 | ||
Impairment recognized on right-of-use assets | - | 26,431 |
Note 27
Lease liabilities
DKK thousand | 2025 | 2024 | ||
Non-current | 74,462 | 73,653 | ||
Current | 43,371 | 39,470 | ||
Lease liabilities | 117,833 | 113,123 | ||
DKK thousand | Due within 1 year | Due between 1 and 5 year | Due after 5 years | Total |
2025 | ||||
Lease liabilities | 43,371 | 60,433 | 14,029 | 117,833 |
Total | 43,371 | 60,433 | 14,029 | 117,833 |
2024 | ||||
Lease liabilities | 39,470 | 73,653 | - | 113,123 |
Total | 39,470 | 73,653 | - | 113,123 |
Accounting policies
The right-of-use assets comprise the initial measure-ment of the corresponding lease liability. Right-of-use assets are subsequently measured at cost less accumu-lated depreciation and impairment losses.
All operating leases with a lease term of more than 12 months are recognized on the balance sheet as right-of-use-assets.
For leases with a lease term of less than 12 months the lease payments are recognized as an operating expense on a straight-line basis over the term of the lease.
The right-of-use assets are measured at the present value of all future lease payments. When assessing the lease term, any extension or termination options are included in the assessment. The options are included in determining the lease term, if exercise is reason-ably certain. When determining the discount rates used to calculate the net present value of future lease payments, an incremental country specific borrowing rate is used, based on a government bond plus the Group\u2019s credit margin, ranging from 4.8% to 6.93%. A single discount rate is used for a portfolio of lease assets with reasonable similar characteristics. Initial direct costs are not included in measurement of the right-of-use assets. Non-lease components are not separated from lease components.
A maturity analysis for lease payments is described in note 22. Impact from change in lease terms, lease payments or modification of the lease contract is further described in note 27.
Right-of-use assets are depreciated over the shorter period of lease term and useful life of the underlying asset. The depreciation starts at the commencement date of the lease. IAS 36 is applied to determine whether a right-of-use asset is impaired and any iden-tified impariment losses are accounted for as described in note 15.
Accounting policies
The lease liability is initially measured at the present value of the future lease payments (see further in note 17), discounted by using an incremental country specific borrowing rate ranging from 4.8% to 6.93% applying only a single discount rate for a portfolio of lease assets with reasonable similar characteristics.
The lease liability is subsequently measured by increasing the carrying amount to reflect interest on the lease liability using the effective interest method and by reducing the carrying amount to reflect the lease payments made.
The lease liability is remeasured and corresponding adjustments are made to the related right-of-use-asset whenever:
The lease term has changed, in which case the lease liability is remeasured by discounting the revised lease payments using a revised discount rate.
The lease payments change due to changes in an index or rate, in which case the lease liability is remeasured by discounting the revised lease payments using an unchanged discount rate.
A lease contract is modified and the lease modifica-tion is not accounted for as a separate lease, in which case the lease liability is remeasured based on the lease term of the modified lease by discounting the revised lease payments using a revised discount rate at the effective date of the modification.
Note 18
Inventories
Production overheads are measured on the basis of actual costs. The basis of the actual costs is reassessed regularly to ensure that they are adjusted for changes in the utilization of production capacity, production changes and other relevant factors. Biological living material is used, and the measurements and assump-tions for the estimates made may be incomplete or inaccurate, and unexpected events or circumstances may occur, which may cause the actual outcomes to later deviate from these estimates. It may be necessary to change previous estimates as a result of changes in the assumptions on which the estimates were based or due to new information or subsequent events, for which certainty could not be achieved in the earlier estimates.
Estimates that are material to the financial reporting are made in the determination of any write-down due to impairment of inventories as a result of unreleased products, expiry of products and sales risk.
DKK thousand | 2025 | 2024 |
Raw materials and supply materials | 262,296 | 313,878 |
Work in progress | 1,990,711 | 1,557,074 |
Manufactured goods | 638,269 | 712,285 |
Write-down on inventory | (377,357) | (255,928) |
Inventories | 2,513,919 | 2,327,309 |
Write-down on inventory as of January 1 | (255,928) | (224,615) |
Write-down for the year | (325,037) | (187,183) |
Use of write-down | 203,608 | 126,322 |
Reversal of write-down | - | 29,548 |
Write-down on inventory as of December 31 | (377,357) | (255,928) |
Cost of goods sold amounts to, cf. note 4 | 1,869,858 | 1,580,276 |
The inventory value of Encepur and Rabipur/RabAvert products amounted to DKK 1,328 million (DKK 1,625 million), Jynneos/Imvamune/Imvanex amounted to DKK 606 million (DKK 303 million), Vivotif and Vaxchora amounted to DKK 77 million (DKK 94 million) and Vimkunya amounted to DKK 221 million (DKK 67 million) as per December 31, 2025 incl. write-down.
Write-down for the year amounted to DKK 325 million (DKK 187 million) and mainly relates to write down of Encepur DKK 149 million and MVA DKK 82 million.
Use of prior year write-down amounted to DKK 204 million (DKK 126 million) relating to scrap of expired finish products, including DKK 100 million of Encepur FDP, and scrap of finally failed batch productions.
Inventories are measured at the lower of cost less write-downs and net realisable value. The net realis-able value is the estimated sales price in the ordinary course of business less relevant sales costs deter-mined on the basis of marketability, obsolescence and changes in the expected sales price.
Raw materials are measured at cost based on the FIFO method. For raw materials, cost is determined as direct acquisition costs incurred.
The cost of work in progress and finished goods produced in-house are measured at standard cost and includes raw materials, consumables, external manu-facturing services and direct payroll costs plus allocated indirect costs of production (production overheads).
Indirect costs of production include indirect materials and labor as well as maintenance of and depreciation on the machinery used in production processes, factory buildings and equipment used and cost of production administration and management.
", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForMeasuringInventories", "language": "en", "entity": "scheme:2138006JCDVYIN6INP51", "period": "2025-01-01T00:00:00/2026-01-01T00:00:00" } }, "f0__s8__7__227-1": { "value": "Note 19
Trade receivables
DKK thousand | 2025 | 2024 |
Trade receivables from public preparedness business | 233,351 | 877,588 |
Trade receivables from travel health business | 545,701 | 297,975 |
Trade receivables from contract work | 1,246 | 181 |
Trade receivables | 780,298 | 1,175,744 |
Credit risk
Bavarian Nordic\u2019s customers are predominantly public authorities and renowned wholesalers and therefore the credit risk is very low. There are overdue receiva-bles as of December 31, 2025 DKK 154 million (DKK 89 million). As of December 31, 2025 a loss allowance of DKK 4 million (DKK 3 million) has been recognized.
The Group has applied the simplified approach to measure the expected credit loss and a lifetime expected loss allowance for all trade receivables.The allowance is an estimate based on shared credit risk characteristics and the days past due. At the time of revenue recognition, Bavarian Nordic assesses the full lifetime expected credit losses. In addition, undue and due receivables are analyzed in an ongoing process. Based on the credit assessment, receivables analysis, historical experience and industry experience, it is estimated whether the receivables are recoverable
or write-downs are needed. Bavarian Nordic monitor the credit exposure on all customers, both new and existing.
Bavarian Nordic recognizes a loss allowance for expected credit losses and writes off trade receivables when there is information indicating that the debtor is in severe financial difficulty and there is no realistic prospect of recovery. Subsequent recovery of amounts previously written down is credited against sales and distribution costs.
The payment conditions for the customers, including credit periods and any payment of interest in case of non-payment, vary, but are always based on industry practice in the relevant market. The average credit period is approximately 30 days for the public prepar-edness business, while the average credit period for the travel health business is 60 days.
The table details the risk profile for trade receivables.
Trade receivables | |||
DKK thousand | Grosscarryingamount | Loss allowance | Net carrying amount |
2025 | |||
Not past due date | 630,247 | - | 630,247 |
Overdue by 0-3 months | 122,131 | - | 122,131 |
Overdue by 3-6 months | 20,386 | (2,425) | 17,961 |
Overdue by 6-12 months | 2,526 | (1,489) | 1,037 |
Overdue by more than 12 months | 8,922 | - | 8,922 |
Trade receivables | 784,212 | (3,914) | 780,298 |
2024 | |||
Not past due date | 1,089,771 | - | 1,089,771 |
Overdue by 0-3 months | 42,299 | - | 42,299 |
Overdue by 3-6 months | 41,204 | (1,954) | 39,250 |
Overdue by 6-12 months | 5,465 | (1,041) | 4,424 |
Overdue by more than 12 months | - | - | - |
Trade receivables | 1,178,739 | (2,995) | 1,175,744 |
Note 20
Other receivables
counter the loss after an individual assessment of risk of loss. Derivative financial instruments are measured at fair value.
DKK thousand | 2025 | 2024 |
Deposits | 15,150 | 9,086 |
Receivable VAT and duties | 40,525 | 38,910 |
Derivative financial instruments at fair value | 10,260 | 698 |
Interest receivables | 8,600 | 3,687 |
Other receivables | 2,051 | 370 |
Other receivables | 76,586 | 52,751 |
Classified as: | ||
Non-current assets | 15,150 | 9,086 |
Current assets | 61,436 | 43,665 |
Other receivables | 76,586 | 52,751 |
Note 19
Trade receivables
DKK thousand | 2025 | 2024 |
Trade receivables from public preparedness business | 233,351 | 877,588 |
Trade receivables from travel health business | 545,701 | 297,975 |
Trade receivables from contract work | 1,246 | 181 |
Trade receivables | 780,298 | 1,175,744 |
Credit risk
Bavarian Nordic\u2019s customers are predominantly public authorities and renowned wholesalers and therefore the credit risk is very low. There are overdue receiva-bles as of December 31, 2025 DKK 154 million (DKK 89 million). As of December 31, 2025 a loss allowance of DKK 4 million (DKK 3 million) has been recognized.
The Group has applied the simplified approach to measure the expected credit loss and a lifetime expected loss allowance for all trade receivables.The allowance is an estimate based on shared credit risk characteristics and the days past due. At the time of revenue recognition, Bavarian Nordic assesses the full lifetime expected credit losses. In addition, undue and due receivables are analyzed in an ongoing process. Based on the credit assessment, receivables analysis, historical experience and industry experience, it is estimated whether the receivables are recoverable
or write-downs are needed. Bavarian Nordic monitor the credit exposure on all customers, both new and existing.
Bavarian Nordic recognizes a loss allowance for expected credit losses and writes off trade receivables when there is information indicating that the debtor is in severe financial difficulty and there is no realistic prospect of recovery. Subsequent recovery of amounts previously written down is credited against sales and distribution costs.
The payment conditions for the customers, including credit periods and any payment of interest in case of non-payment, vary, but are always based on industry practice in the relevant market. The average credit period is approximately 30 days for the public prepar-edness business, while the average credit period for the travel health business is 60 days.
The table details the risk profile for trade receivables.
Trade receivables | |||
DKK thousand | Grosscarryingamount | Loss allowance | Net carrying amount |
2025 | |||
Not past due date | 630,247 | - | 630,247 |
Overdue by 0-3 months | 122,131 | - | 122,131 |
Overdue by 3-6 months | 20,386 | (2,425) | 17,961 |
Overdue by 6-12 months | 2,526 | (1,489) | 1,037 |
Overdue by more than 12 months | 8,922 | - | 8,922 |
Trade receivables | 784,212 | (3,914) | 780,298 |
2024 | |||
Not past due date | 1,089,771 | - | 1,089,771 |
Overdue by 0-3 months | 42,299 | - | 42,299 |
Overdue by 3-6 months | 41,204 | (1,954) | 39,250 |
Overdue by 6-12 months | 5,465 | (1,041) | 4,424 |
Overdue by more than 12 months | - | - | - |
Trade receivables | 1,178,739 | (2,995) | 1,175,744 |
Receivables are measured at initial recognition at fair value and subsequently at amortized value usually equal to the nominal value, net of impairment based on expected credit losses.
Loss allowance is calculated using the \u2018full lifetime expected credit losses\u2019 method, whereby the likelihood of non-fulfilment throughout the lifetime of the finan-cial instrument is taken into consideration. A provision account is used for this purpose.
Accounting policiesReceivables are measured at initial recognition at fair value and subsequently at amortized value usually equal to the nominal value, net of impairment, to
counter the loss after an individual assessment of risk of loss. Derivative financial instruments are measured at fair value.
", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForTradeAndOtherReceivablesExplanatory", "language": "en", "entity": "scheme:2138006JCDVYIN6INP51", "period": "2025-01-01T00:00:00/2026-01-01T00:00:00" } }, "f0__s8__7__231-1": { "value": "Credit risk
Bavarian Nordic\u2019s customers are predominantly public authorities and renowned wholesalers and therefore the credit risk is very low. There are overdue receiva-bles as of December 31, 2025 DKK 154 million (DKK 89 million). As of December 31, 2025 a loss allowance of DKK 4 million (DKK 3 million) has been recognized.
The Group has applied the simplified approach to measure the expected credit loss and a lifetime expected loss allowance for all trade receivables.The allowance is an estimate based on shared credit risk characteristics and the days past due. At the time of revenue recognition, Bavarian Nordic assesses the full lifetime expected credit losses. In addition, undue and due receivables are analyzed in an ongoing process. Based on the credit assessment, receivables analysis, historical experience and industry experience, it is estimated whether the receivables are recoverable
or write-downs are needed. Bavarian Nordic monitor the credit exposure on all customers, both new and existing.
Bavarian Nordic recognizes a loss allowance for expected credit losses and writes off trade receivables when there is information indicating that the debtor is in severe financial difficulty and there is no realistic prospect of recovery. Subsequent recovery of amounts previously written down is credited against sales and distribution costs.
The payment conditions for the customers, including credit periods and any payment of interest in case of non-payment, vary, but are always based on industry practice in the relevant market. The average credit period is approximately 30 days for the public prepar-edness business, while the average credit period for the travel health business is 60 days.
The table details the risk profile for trade receivables.
Credit risks
The primary credit risk relates to trade receivables. The Company assesses the expected credit losses also
considering changes in the macro environment that might impose an increased risk of losses. The Group\u00b4s customers are predominantly public authorities and renowned pharmaceutical companies and wholesalers, and the credit risk on the Group's receivables is there-fore considered to be very low. A loss allowance of DKK 3.9 million (DKK 3.0 million) has been recognized as of December 31, 2025, cf. note 19.
To manage credit risk regarding financial counterpar-ties, Bavarian Nordic only enters into derivative finan-cial contracts, repurchase contracts and money market deposits with financial counterparties possessing a satisfactory long-term credit rating from at least two out of the three selected ratings agencies: Standard and Poor\u2019s, Moody\u2019s and Fitch.
Cash and cash equivalents are not deemed to be subject to any special credit risk as they are deposited with Nordea and Danske Bank. The bond portfolio is invested in either Danish government bonds, Danish mortgage bonds or bonds issued by Danish banks with high ratings.
", "dimensions": { "concept": "ifrs-full:DisclosureOfCreditRiskExplanatory", "language": "en", "entity": "scheme:2138006JCDVYIN6INP51", "period": "2025-01-01T00:00:00/2026-01-01T00:00:00" } }, "f0__s8__7__238": { "value": "Note 21
Prepayments
Accounting policies
Prepayments recognized under assets include costs paid in respect of subsequent financial years, including incurred costs related to technology transfer activities at CMO's, where the costs subsequently will be recog-
nized as inventory in concurrence with purchase of production services from the CMO's. Prepayments are measured at cost.
DKK thousand | 2025 | 2024 |
Incurred project costs related to subsequent years | 5,986 | - |
Prepayments to CMO's | 81,532 | 73,986 |
Other prepayments | 20,002 | 26,759 |
Prepayments | 107,520 | 100,745 |
Classified as: | ||
Non-current assets | 73,268 | 36,421 |
Current assets | 34,252 | 64,324 |
Prepayments | 107,520 | 100,745 |
As per December 31, 2025 the main part of the prepay-ments to CMO's relates to technology transfer activities and capacity reservations. The costs are recognized as prepayments when they are incurred and then recog-nized as inventory in concurrence with purchase of production services from the CMO's. As per December 31, 2025 DKK 73.3 million (DKK 36.4 million) has been recognized as non-current prepayments.
As per December 31, 2024 the main part of the prepay-ments to CMO's related to the scale-up activities to prepare for production of drug product for commercial launch of Chikungunya. Costs related to the technology transfer activities are recognized as prepayments when costs are incurred and then recognized as inventory in concurrence with purchase of production services from the CMO's.
Note 22
Other liabilities
DKK thousand | 2025 | 2024 |
Financial instruments at fair value | - | 29,902 |
Payable salaries, holiday accrual etc. | 279,119 | 242,736 |
Gross to net deduction accrual | 246,164 | 186,576 |
Other accrued costs | 37,952 | 38,243 |
Other liabilities | 563,235 | 497,457 |
Gross to net deduction accruals consist of a variety of sales deductions, including product returns as well as rebates and discounts to government agencies, whole-salers, health insurance companies, managed health-care organizations and retail customers. The different components are further described in note 3.
For a further description of financial instruments see note 23.
", "dimensions": { "concept": "ifrs-full:DisclosureOfOtherLiabilitiesExplanatory", "language": "en", "entity": "scheme:2138006JCDVYIN6INP51", "period": "2025-01-01T00:00:00/2026-01-01T00:00:00" } }, "f0__s8__7__242-1": { "value": "Note 22
Other liabilities
DKK thousand | 2025 | 2024 |
Financial instruments at fair value | - | 29,902 |
Payable salaries, holiday accrual etc. | 279,119 | 242,736 |
Gross to net deduction accrual | 246,164 | 186,576 |
Other accrued costs | 37,952 | 38,243 |
Other liabilities | 563,235 | 497,457 |
Gross to net deduction accruals consist of a variety of sales deductions, including product returns as well as rebates and discounts to government agencies, whole-salers, health insurance companies, managed health-care organizations and retail customers. The different components are further described in note 3.
For a further description of financial instruments see note 23.
", "dimensions": { "concept": "ifrs-full:DisclosureOfAccruedExpensesAndOtherLiabilitiesExplanatory", "language": "en", "entity": "scheme:2138006JCDVYIN6INP51", "period": "2025-01-01T00:00:00/2026-01-01T00:00:00" } }, "f0__s8__7__244-1": { "value": "Note 22
Other liabilities
DKK thousand | 2025 | 2024 |
Financial instruments at fair value | - | 29,902 |
Payable salaries, holiday accrual etc. | 279,119 | 242,736 |
Gross to net deduction accrual | 246,164 | 186,576 |
Other accrued costs | 37,952 | 38,243 |
Other liabilities | 563,235 | 497,457 |
Gross to net deduction accruals consist of a variety of sales deductions, including product returns as well as rebates and discounts to government agencies, whole-salers, health insurance companies, managed health-care organizations and retail customers. The different components are further described in note 3.
For a further description of financial instruments see note 23.
", "dimensions": { "concept": "ifrs-full:DisclosureOfOtherCurrentLiabilitiesExplanatory", "language": "en", "entity": "scheme:2138006JCDVYIN6INP51", "period": "2025-01-01T00:00:00/2026-01-01T00:00:00" } }, "f0__s8__7__246": { "value": "Accounting policiesDerivative financial instruments are measured at fair value.
Other financial liabilities are measured at initial recognition at fair value less any transaction costs. Subsequent other financial liabilities are measured at
amortized cost using the effective interest method, whereby the difference between proceeds and the nominal value is recognized in the income statement as a financial expense over the period. Amortized cost usually equal to the nominal value.
", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForFinancialLiabilitiesExplanatory", "language": "en", "entity": "scheme:2138006JCDVYIN6INP51", "period": "2025-01-01T00:00:00/2026-01-01T00:00:00" } }, "f0__s8__7__248-1": { "value": "Note 23
Financial risks and financial instruments
DKK thousand | 2025 | 2024 |
Categories of financial instruments | ||
Trade receivables | 780,298 | 1,175,744 |
Other receivables | 66,326 | 52,053 |
Cash and cash equivalents | 1,714,498 | 1,623,490 |
Financial assets measured at amortized cost | 2,561,122 | 2,851,287 |
Securities | 1,619,004 | 551,538 |
Financial assets measured at fair value through the income statement | 1,619,004 | 551,538 |
Derivative financial instruments to hedge future cash flows (exchange rate) | 9,658 | - |
Derivative financial instruments to hedge future cash flows (interest) | 602 | 698 |
Financial assets used as hedging instruments | 10,260 | 698 |
Deferred consideration | - | 1,081,465 |
Debt to credit institutions | 13,037 | 15,127 |
Lease liabilities | 117,833 | 113,123 |
Prepayment from customers | 9,949 | 131,408 |
Trade payables | 999,744 | 1,045,134 |
Other liabilities | 531,235 | 467,555 |
Financial liabilities measured at amortized cost | 1,671,798 | 2,853,812 |
Derivative financial instruments to hedge future cash flows (exchange rate) | - | 29,902 |
Financial liabilities used as hedging instruments | - | 29,902 |
The carrying amount of short-term trade receivables and payables is considered a reasonable approximation of fair value, since these amounts have credit terms of 3 months or less.
Policy for managing financial risks
Through its operations, investments and financing the Group is exposed to fluctuations in exchange rates and interest rates. These risks are managed centrally in the Parent Company, which manages the Group\u00b4s liquidity. The Group pursues a treasury policy approved by the Board of Directors. The policy operates with a low risk profile, so that exchange rate risks, interest rate risks and credit risks arise only in commercial relations. The Group therefore does not undertake any active specula-tion in financial risk.
The Group\u00b4s capital structure is regularly assessed by the Board of Directors relative to the Group\u00b4s cash flow posi-tion and cash flow budgets.
Market risks
Market risk is the risk that changes in market prices will affect the Group\u2019s profit or the value of its holdings of financial instruments. Bavarian Nordic is exposed to various market risks with the main risks being exchange rate risks, interest rate risks and cash risks. All market risks are managed in accordance with the treasury policy approved by the Audit Committee.
Interest rate risk
It is the Group's policy to hedge interest rate risks on loans obtained with floating rate and a maturity of more than five years. Hedging will then consist of interest rate swaps that convert floating rate loans to fixed rate loans. Management determines the economic relationship between the hedged item and the hedging instrument to ensure a high hedge effectiveness.
The interest rate risk involved in placing cash funds and investing in securities is managed on the basis of duration, preferably via a low portfolio duration and pari settlement of securities in order to minimize value adjustment risks.
Exchange rate risks
The Group\u2019s exchange rate exposure is primarily to USD, EUR and CHF. The exchange rate exposure to USD is hedged to the greatest possible extent by matching incoming and outgoing payments denominated in USD, looking at maximum one year ahead. Regular assess-ments are made of whether the remaining net position should be hedged by currency forward contracts or currency option contracts.
The exposure to EUR for operating and financing activ-ities are not hedged as management believes that fluctuations in EUR are limited due to the Danish fixed-rate policy which is expected to be maintained and that matching of incoming and outgoing payments denomi-nated in EUR reduces the net exposure significantly. Thus the fluctuations in EUR do not have a significant impact on financial performance. Given the magnitude of the last payable milestone denominated in EUR, manage-ment has chosen to hedge the EUR exposure on this part of the Group's investment activities.
CHF exposure on operating and financing activities is not hedged, as a large portion is long term and outside the scope of the hedging policy. Remaining exposure is mitigated by matching CHF inflows and outflows where possible. Given the cash flow profile, the 12-month rolling hedging strategy, the limited impact on financial
Exchange rate risks on recognized financial assets and liabilities | ||||
DKK thousand | Cash and cash equivalents, securities | Receivables | Liabilities | Net position |
2025 | ||||
EUR | 542,846 | 248,939 | (820,956) | (29,171) |
USD | 190,202 | 478,811 | (299,307) | 369,706 |
CHF | 9,929 | 20,016 | (229,454) | (199,509) |
2024 | ||||
EUR | 208,849 | 660,007 | (1,530,566) | (661,710) |
USD | 334,980 | 619,176 | (1,218,425) | (264,269) |
CHF | 8,473 | 39,541 | (206,248) | (158,234) |
Sensitivity analysis on exchange rates | ||||
DKK thousand | Reasonably possible change in exchange rate | |||
Hypothetical change in equity | Hypothetical change in net result | |||
2025 | ||||
Change if higher USD-rate than actual rate | 10% | 71,573 | 65,539 | |
Change if higher EUR-rate than actual rate | 2% | 2,796 | (120) | |
Change if higher CHF-rate than actual rate | 5% | 35,592 | (813) | |
2024 | ||||
Change if higher USD-rate than actual rate | 8% | 30,868 | 29,544 | |
Change if higher EUR-rate than actual rate | 2% | (12,725) | (18,385) | |
Change if higher CHF-rate than actual rate | 9% | 54,515 | (17,809) |
performance, and the cost of hedging, management has determined that additional hedging is not warranted and will continue to monitor the exposure.
The sensitivity analysis shows the net effect it would have had on equity and profit for the year if the year-end exchange rates of USD, EUR and CHF had been 10%, 2% or 5%, respectively (USD, EUR and CHF had been 8%, 2% or 9%, respectively), higher than the actual exchange rates. A corresponding decrease in the actual exchange rates would have had an opposite (positive/negative) effect on net result and equity. The percentages used year-end 2025 for USD and CHF are based on the historical maximal currency rate spread from average in the period 2024 - 2025. The percentage used for EUR is based on the maximum spread in the ERM II framework.
Derivative financial instruments not designated as hedge accounting
Currency forward contracts and currency option contracts which are not designated as hedge accounting are classified as financial assets/liabilities measured at fair value with value adjustments recog-nized through the income statement.
There were no open currency contracts as of December 31, 2025 or as per December 31, 2024 not designated as hedge accounting.
Hedging of expected future cash flows
The Company has concluded currency forward contracts to sell USD 80 million (sell USD 264 million) and to buy
Cash flow hedge \u2013 forward currency contracts | |||||
DKK thousand | Forward price | ||||
Contract amount based on agreed rates | Fair value as of December 31 | ||||
Fair value adjustment recognized in other compre-hensive income | |||||
2025 | |||||
Forward currency contracts (USD/DKK) | Sell USD | 6.31 - 6.47 | 510,073 | 5,126 | 43,106 |
Forward currency contracts (DKK/EUR) | Buy EUR | 7.40 | 518,153 | 4,532 | (3,546) |
9,658 | 39,560 | ||||
2024 | |||||
Forward currency contracts (USD/DKK) | Sell USD | 6.76 - 7.07 | 1,832,534 | (37,980) | (77,165) |
Forward currency contracts (DKK/EUR) | Buy EUR | 7.40 - 7.41 | 1,333,378 | 8,078 | 2,479 |
(29,902) | (74,686) | ||||
Cash flow hedge \u2013 interest rate swap | |||||
DKK thousand | Contract amount based on agreed rates | Fair value as of December 31 | |||
Fair value adjustment recognized in other compre-hensive income | |||||
2025 | |||||
Interest rate swap | |||||
DKK - fixed rate 0.9625% p.a. (expiry 2031) | 12,708 | 602 | (96) | ||
602 | (96) | ||||
2024 | |||||
Interest rate swap | |||||
DKK - fixed rate 0.9625% p.a. (expiry 2031) | 14,880 | 698 | (405) | ||
698 | (405) |
EUR 70 million (buy EUR 180 million) to hedge net USD cash flow during 2026 and EUR milestone payments in 2026.
These concluded currency forward contracts are deemed to be effective hedges of future transac-tion (cash flow hedges) and thus treated as hedge accounting.
In 2016 the Company refinanced the old mortgage loans (fixed rate) and obtained a new mortgage loan with floating rate. The Company also concluded an interest rate swap to convert the floating rate loan to a fixed rate loan. The interest rate swap has the same maturity date and nominal amount as the mortgage loan to secure high effectiveness of the hedge.
Cash risks
The Group\u00b4s bank deposits are placed in deposit accounts without restrictions. The Group's cash and cash equivalents totaled DKK 1,714 million as of December 31, 2025 (DKK 1,623 million).
The Group's fixed rate bond portfolio expires as shown below. Amounts are stated excluding interest.
2025 | 2024 | |||
DKK thousand | Fair value as of December 31 | Effective interest | Fair value as of December 31 | Effective interest |
Bond portfolio | ||||
Within 0-2 years | 1,483,735 | 1.9% | 399,833 | 2.5% |
Within 3-5 years | 19,735 | 2.4% | - | - |
After 5 years | 115,534 | 3.2% | 151,705 | 2.8% |
Total | 1,619,004 | 2.0% | 551,538 | 2.6% |
Fluctuations in interest rate levels affect the Group's bond portfolio. A change in the interest rate level by 1 percentage point relative to the interest rate level on the balance sheet date will have an impact of DKK 15 million on the Group\u00b4s net result and equity (DKK 12 million).
The bond position with a duration of more than 5 years is a result of previous year's investment strategy. The Group is in process of adapting the bond portfolio to the amended investment strategy with the aim of reducing the duration of the portfolio.
Maturity of financial liabilities | 2025 | ||||
Undiscounted contractual cash flow | |||||
DKK thousand | Due within 1 year | ||||
Due between 1 and 5 years | Due after 5 years | Total | Carrying amount | ||
Credit institutions | 2,535 | 9,947 | 1,828 | 14,310 | 13,037 |
Lease liabilities | 43,371 | 68,493 | 15,378 | 127,242 | 117,833 |
Prepayment from customers | 9,949 | 9,949 | 9,949 | ||
Trade payables | 999,744 | - | - | 999,744 | 999,744 |
Other liabilities | 531,235 | - | - | 531,235 | 531,235 |
Non-derivative financial liabilities | 1,586,834 | 78,440 | 17,206 | 1,682,480 | 1,671,798 |
Derivative financial liabilities | - | - | - | - | - |
2024 | |||||
Undiscounted contractual cash flow | |||||
DKK thousand | Due within 1 year | ||||
Due between 1 and 5 years | Due after 5 years | Total | Carrying amount | ||
Deferred consideration | 1,104,708 | - | - | 1,104,708 | 1,081,465 |
Credit institutions | 2,588 | 10,162 | 4,345 | 17,095 | 15,127 |
Lease liabilities | 39,602 | 80,357 | - | 119,959 | 113,123 |
Prepayment from customers | 131,408 | 131,408 | 131,408 | ||
Trade payables | 1,045,134 | - | - | 1,045,134 | 1,045,134 |
Other liabilities | 467,555 | - | - | 467,555 | 467,555 |
Non-derivative financial liabilities | 2,790,995 | 90,519 | 4,345 | 2,885,859 | 2,853,812 |
Derivative financial liabilities | 29,902 | - | - | 29,902 | 29,902 |
Financial liabilities due within one year DKK 1,587 million (DKK 2,821 million) is expected to be settled with short term assets recognized as of December 31, 2025, consisting of cash and cash equivalents, securities together with trade receivables and other receivables to a total of DKK 4,175 million (DKK 3,394 million).
The financial liabilities due after one year, DKK 96 million (DKK 95 million) is expected to be settled with the excess short term assets of DKK 2,588 million (DKK 573 million) in conjunction with expected cash flow from future operations.
To further mitigate potential liquidity fluctuations, the Group obtained access to a Revolving Credit Facility of DKK 1,000 million in 2023. The facility was undrawn as of December 31, 2025.
With respect to the Group\u00b4s debt to credit institutions, a change in the applicable interest rate by 1 percentage point would have had an impact on the Group's net result and equity of DKK 0.1 million (DKK 0.1 million).
Debt to credit institutions is a mortgage loan of DKK 13 million (DKK 15 million), further described in note 25.
The Group has a credit facility of DKK 20 million (DKK 20 million) at Nordea. As of December 31, 2025, DKK 0.1 million (DKK 0.3 million) of the credit facility is utilized for bank guarantees.
Credit risks
The primary credit risk relates to trade receivables. The Company assesses the expected credit losses also
considering changes in the macro environment that might impose an increased risk of losses. The Group\u00b4s customers are predominantly public authorities and renowned pharmaceutical companies and wholesalers, and the credit risk on the Group's receivables is there-fore considered to be very low. A loss allowance of DKK 3.9 million (DKK 3.0 million) has been recognized as of December 31, 2025, cf. note 19.
To manage credit risk regarding financial counterpar-ties, Bavarian Nordic only enters into derivative finan-cial contracts, repurchase contracts and money market deposits with financial counterparties possessing a satisfactory long-term credit rating from at least two out of the three selected ratings agencies: Standard and Poor\u2019s, Moody\u2019s and Fitch.
Cash and cash equivalents are not deemed to be subject to any special credit risk as they are deposited with Nordea and Danske Bank. The bond portfolio is invested in either Danish government bonds, Danish mortgage bonds or bonds issued by Danish banks with high ratings.
Managing capital structure
The Group's definition of capital encompasses equity together with net interest-bearing debt. The 2023 addition of net interest-bearing debt to the capital defi-nition, did accommodate the introduction of external capital as a resource for the Group in accordance with the conclusion of a committed Revolving Credit Facility in 2023, see further below.
As of December 31, 2025 net interest-bearing debt consists of deferred consideration, cf. note 24, debt
to credit institutions, cf. note 25, lease liabilities, cf. note 27 with subtraction of cash and cash equivalents together with securities, that in total forms a net receivable of DKK 3,203 million (net receivable DKK 965 million).
Total equity as of December 31, 2025, amounted to DKK 12,870 million (DKK 11,409 million).
The Group obtained in 2023 access to a committed Revolving Credit Facility (RCF) of DKK 1,000 million with Nordea and Danske Bank as joint lenders. The facility was undrawn as of December 31, 2025 (undrawn as of December 31, 2024). As an integrated part of the RCF agreement, the Group is subject to covenant require-ments consisting of a net interest-bearing debt to EBITDA ratio. The Group regularly secures that compli-ance with the covenant is met.
Management regularly assesses whether the Group\u00b4s capital structure best serves the interests of the Group and its shareholders. The overall goal is to ensure that the Group has a capital structure which supports its long-term strategy and growth target. In supporting this goal and to maintain the capital structure, the Group can issue new shares, return capital to share-holders, sell assets to reduce debt or increase the groups debt obligations, including taking on bank debt and by way of deferred consideration, provided any financial covenants are respected.
Securities (level 1)
The portfolio of publicly traded government bonds, publicly traded mortgage bonds and bank bonds is valued at listed prices and price quotas.
Derivative financial instruments (level 2)
Currency forward contracts, currency option contracts and interest swap contracts are valued according to generally accepted valuation methods based on rele-vant observable swap curves and exchange rates.
Fair value hierarchy for financial instruments measured at fair value | 2025 | ||
DKK thousand | Level 1 | Level 2 | Total |
Securities | 1,619,004 | - | 1,619,004 |
Financial assets measured at fair value through the income statement | 1,619,004 | - | 1,619,004 |
Derivative financial instruments to hedge future cash flow (currency) | - | 9,658 | 9,658 |
Derivative financial instruments to hedge future cash flow (interest) | - | 602 | 602 |
Financial assets/liabilities used as hedging instruments | - | 10,260 | 10,260 |
2024 | |||
DKK thousand | Level 1 | Level 2 | Total |
Securities | 551,538 | - | 551,538 |
Financial assets measured at fair value through the income statement | 551,538 | - | 551,538 |
Derivative financial instruments to hedge future cash flow (currency) | - | (29,902) | (29,902) |
Derivative financial instruments to hedge future cash flow (interest) | - | 698 | 698 |
Financial assets/liabilities used as hedging instruments | - | (29,204) | (29,204) |
Note 23
Financial risks and financial instruments
DKK thousand | 2025 | 2024 |
Categories of financial instruments | ||
Trade receivables | 780,298 | 1,175,744 |
Other receivables | 66,326 | 52,053 |
Cash and cash equivalents | 1,714,498 | 1,623,490 |
Financial assets measured at amortized cost | 2,561,122 | 2,851,287 |
Securities | 1,619,004 | 551,538 |
Financial assets measured at fair value through the income statement | 1,619,004 | 551,538 |
Derivative financial instruments to hedge future cash flows (exchange rate) | 9,658 | - |
Derivative financial instruments to hedge future cash flows (interest) | 602 | 698 |
Financial assets used as hedging instruments | 10,260 | 698 |
Deferred consideration | - | 1,081,465 |
Debt to credit institutions | 13,037 | 15,127 |
Lease liabilities | 117,833 | 113,123 |
Prepayment from customers | 9,949 | 131,408 |
Trade payables | 999,744 | 1,045,134 |
Other liabilities | 531,235 | 467,555 |
Financial liabilities measured at amortized cost | 1,671,798 | 2,853,812 |
Derivative financial instruments to hedge future cash flows (exchange rate) | - | 29,902 |
Financial liabilities used as hedging instruments | - | 29,902 |
The carrying amount of short-term trade receivables and payables is considered a reasonable approximation of fair value, since these amounts have credit terms of 3 months or less.
Derivative financial instruments not designated as hedge accounting
Currency forward contracts and currency option contracts which are not designated as hedge accounting are classified as financial assets/liabilities measured at fair value with value adjustments recog-nized through the income statement.
There were no open currency contracts as of December 31, 2025 or as per December 31, 2024 not designated as hedge accounting.
", "dimensions": { "concept": "ifrs-full:DisclosureOfDerivativeFinancialInstrumentsExplanatory", "language": "en", "entity": "scheme:2138006JCDVYIN6INP51", "period": "2025-01-01T00:00:00/2026-01-01T00:00:00" } }, "f0__s8__7__254": { "value": "Accounting policies
Derivative financial instruments
On initial recognition, derivative financial instruments are measured at the fair value on the settlement date.
Directly attributable costs related to the purchase or issuance of the individual financial instruments (transaction costs) are added to the fair value on initial recognition, unless the financial asset or the financial liability is measured at fair value with recognition of fair value adjustments in the income statement. Subse-quently, they are measured at fair value at the balance sheet date based on the official exchange rates, market interest rates and other market data such as volatility adjusted for the special characteristics of each instru-ment.
The Company has designated certain derivative finan-cial instruments as cash flow hedges as defined under IFRS 9 \"Financial Instruments\". Hedge accounting is classified as a cash flow hedge when the hedges of a particular risk is associated with the cash flows of highly probable forecast transactions.
Changes in the fair value of derivative financial instru-ments designated as and qualifying for recognition as effective hedges of future transactions (cash flow
hedges) are recognized in other comprehensive income. The ineffective portion is recognized immediately in the income statement. When the hedged transactions are realized, cumulative changes are recognized in the income statement together with the hedged transac-tion or in respect of a non-financial item as part of the cost of the transactions in question.
For derivative financial instruments that do not qualify for hedge accounting, changes in fair value are recog-nized as financials in the income statement as they occur.
Securities
Securities consist of highly liquid, listed bonds with high credit rating, which are measured at fair value on initial recognition and as of the balance sheet date. The Group\u2019s portfolio of securities is treated as \"financial items at fair value through profit or loss\", as the port-folio is accounted for and valued on the basis of the fair value in compliance with the Company's investment policy.
Both realized and unrealized value adjustments are recognized in the income statement under financials.
Accounting policies
Derivative financial instruments
On initial recognition, derivative financial instruments are measured at the fair value on the settlement date.
Directly attributable costs related to the purchase or issuance of the individual financial instruments (transaction costs) are added to the fair value on initial recognition, unless the financial asset or the financial liability is measured at fair value with recognition of fair value adjustments in the income statement. Subse-quently, they are measured at fair value at the balance sheet date based on the official exchange rates, market interest rates and other market data such as volatility adjusted for the special characteristics of each instru-ment.
The Company has designated certain derivative finan-cial instruments as cash flow hedges as defined under IFRS 9 \"Financial Instruments\". Hedge accounting is classified as a cash flow hedge when the hedges of a particular risk is associated with the cash flows of highly probable forecast transactions.
Changes in the fair value of derivative financial instru-ments designated as and qualifying for recognition as effective hedges of future transactions (cash flow
hedges) are recognized in other comprehensive income. The ineffective portion is recognized immediately in the income statement. When the hedged transactions are realized, cumulative changes are recognized in the income statement together with the hedged transac-tion or in respect of a non-financial item as part of the cost of the transactions in question.
For derivative financial instruments that do not qualify for hedge accounting, changes in fair value are recog-nized as financials in the income statement as they occur.
", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForDerivativeFinancialInstrumentsExplanatory", "language": "en", "entity": "scheme:2138006JCDVYIN6INP51", "period": "2025-01-01T00:00:00/2026-01-01T00:00:00" } }, "f0__s8__7__256": { "value": "Policy for managing financial risks
Through its operations, investments and financing the Group is exposed to fluctuations in exchange rates and interest rates. These risks are managed centrally in the Parent Company, which manages the Group\u00b4s liquidity. The Group pursues a treasury policy approved by the Board of Directors. The policy operates with a low risk profile, so that exchange rate risks, interest rate risks and credit risks arise only in commercial relations. The Group therefore does not undertake any active specula-tion in financial risk.
The Group\u00b4s capital structure is regularly assessed by the Board of Directors relative to the Group\u00b4s cash flow posi-tion and cash flow budgets.
", "dimensions": { "concept": "ifrs-full:DisclosureOfFinancialRiskManagementExplanatory", "language": "en", "entity": "scheme:2138006JCDVYIN6INP51", "period": "2025-01-01T00:00:00/2026-01-01T00:00:00" } }, "f0__s8__7__257": { "value": "Policy for managing financial risks
Through its operations, investments and financing the Group is exposed to fluctuations in exchange rates and interest rates. These risks are managed centrally in the Parent Company, which manages the Group\u00b4s liquidity. The Group pursues a treasury policy approved by the Board of Directors. The policy operates with a low risk profile, so that exchange rate risks, interest rate risks and credit risks arise only in commercial relations. The Group therefore does not undertake any active specula-tion in financial risk.
The Group\u00b4s capital structure is regularly assessed by the Board of Directors relative to the Group\u00b4s cash flow posi-tion and cash flow budgets.
", "dimensions": { "concept": "ifrs-full:DisclosureOfObjectivesPoliciesAndProcessesForManagingCapitalExplanatory", "language": "en", "entity": "scheme:2138006JCDVYIN6INP51", "period": "2025-01-01T00:00:00/2026-01-01T00:00:00" } }, "f0__s8__7__258-1": { "value": "Policy for managing financial risks
Through its operations, investments and financing the Group is exposed to fluctuations in exchange rates and interest rates. These risks are managed centrally in the Parent Company, which manages the Group\u00b4s liquidity. The Group pursues a treasury policy approved by the Board of Directors. The policy operates with a low risk profile, so that exchange rate risks, interest rate risks and credit risks arise only in commercial relations. The Group therefore does not undertake any active specula-tion in financial risk.
The Group\u00b4s capital structure is regularly assessed by the Board of Directors relative to the Group\u00b4s cash flow posi-tion and cash flow budgets.
Financial liabilities due within one year DKK 1,587 million (DKK 2,821 million) is expected to be settled with short term assets recognized as of December 31, 2025, consisting of cash and cash equivalents, securities together with trade receivables and other receivables to a total of DKK 4,175 million (DKK 3,394 million).
The financial liabilities due after one year, DKK 96 million (DKK 95 million) is expected to be settled with the excess short term assets of DKK 2,588 million (DKK 573 million) in conjunction with expected cash flow from future operations.
To further mitigate potential liquidity fluctuations, the Group obtained access to a Revolving Credit Facility of DKK 1,000 million in 2023. The facility was undrawn as of December 31, 2025.
With respect to the Group\u00b4s debt to credit institutions, a change in the applicable interest rate by 1 percentage point would have had an impact on the Group's net result and equity of DKK 0.1 million (DKK 0.1 million).
Debt to credit institutions is a mortgage loan of DKK 13 million (DKK 15 million), further described in note 25.
The Group has a credit facility of DKK 20 million (DKK 20 million) at Nordea. As of December 31, 2025, DKK 0.1 million (DKK 0.3 million) of the credit facility is utilized for bank guarantees.
", "dimensions": { "concept": "ifrs-full:DisclosureOfLiquidityRiskExplanatory", "language": "en", "entity": "scheme:2138006JCDVYIN6INP51", "period": "2025-01-01T00:00:00/2026-01-01T00:00:00" } }, "f0__s8__7__259-1": { "value": "Market risks
Market risk is the risk that changes in market prices will affect the Group\u2019s profit or the value of its holdings of financial instruments. Bavarian Nordic is exposed to various market risks with the main risks being exchange rate risks, interest rate risks and cash risks. All market risks are managed in accordance with the treasury policy approved by the Audit Committee.
Maturity of financial liabilities | 2025 | ||||
Undiscounted contractual cash flow | |||||
DKK thousand | Due within 1 year | ||||
Due between 1 and 5 years | Due after 5 years | Total | Carrying amount | ||
Credit institutions | 2,535 | 9,947 | 1,828 | 14,310 | 13,037 |
Lease liabilities | 43,371 | 68,493 | 15,378 | 127,242 | 117,833 |
Prepayment from customers | 9,949 | 9,949 | 9,949 | ||
Trade payables | 999,744 | - | - | 999,744 | 999,744 |
Other liabilities | 531,235 | - | - | 531,235 | 531,235 |
Non-derivative financial liabilities | 1,586,834 | 78,440 | 17,206 | 1,682,480 | 1,671,798 |
Derivative financial liabilities | - | - | - | - | - |
2024 | |||||
Undiscounted contractual cash flow | |||||
DKK thousand | Due within 1 year | ||||
Due between 1 and 5 years | Due after 5 years | Total | Carrying amount | ||
Deferred consideration | 1,104,708 | - | - | 1,104,708 | 1,081,465 |
Credit institutions | 2,588 | 10,162 | 4,345 | 17,095 | 15,127 |
Lease liabilities | 39,602 | 80,357 | - | 119,959 | 113,123 |
Prepayment from customers | 131,408 | 131,408 | 131,408 | ||
Trade payables | 1,045,134 | - | - | 1,045,134 | 1,045,134 |
Other liabilities | 467,555 | - | - | 467,555 | 467,555 |
Non-derivative financial liabilities | 2,790,995 | 90,519 | 4,345 | 2,885,859 | 2,853,812 |
Derivative financial liabilities | 29,902 | - | - | 29,902 | 29,902 |
Financial liabilities due within one year DKK 1,587 million (DKK 2,821 million) is expected to be settled with short term assets recognized as of December 31, 2025, consisting of cash and cash equivalents, securities together with trade receivables and other receivables to a total of DKK 4,175 million (DKK 3,394 million).
The financial liabilities due after one year, DKK 96 million (DKK 95 million) is expected to be settled with the excess short term assets of DKK 2,588 million (DKK 573 million) in conjunction with expected cash flow from future operations.
To further mitigate potential liquidity fluctuations, the Group obtained access to a Revolving Credit Facility of DKK 1,000 million in 2023. The facility was undrawn as of December 31, 2025.
With respect to the Group\u00b4s debt to credit institutions, a change in the applicable interest rate by 1 percentage point would have had an impact on the Group's net result and equity of DKK 0.1 million (DKK 0.1 million).
Debt to credit institutions is a mortgage loan of DKK 13 million (DKK 15 million), further described in note 25.
The Group has a credit facility of DKK 20 million (DKK 20 million) at Nordea. As of December 31, 2025, DKK 0.1 million (DKK 0.3 million) of the credit facility is utilized for bank guarantees.
", "dimensions": { "concept": "ifrs-full:DisclosureOfMarketRiskExplanatory", "language": "en", "entity": "scheme:2138006JCDVYIN6INP51", "period": "2025-01-01T00:00:00/2026-01-01T00:00:00" } }, "f0__s8__7__260-1": { "value": "Exchange rate risks
The Group\u2019s exchange rate exposure is primarily to USD, EUR and CHF. The exchange rate exposure to USD is hedged to the greatest possible extent by matching incoming and outgoing payments denominated in USD, looking at maximum one year ahead. Regular assess-ments are made of whether the remaining net position should be hedged by currency forward contracts or currency option contracts.
The exposure to EUR for operating and financing activ-ities are not hedged as management believes that fluctuations in EUR are limited due to the Danish fixed-rate policy which is expected to be maintained and that matching of incoming and outgoing payments denomi-nated in EUR reduces the net exposure significantly. Thus the fluctuations in EUR do not have a significant impact on financial performance. Given the magnitude of the last payable milestone denominated in EUR, manage-ment has chosen to hedge the EUR exposure on this part of the Group's investment activities.
CHF exposure on operating and financing activities is not hedged, as a large portion is long term and outside the scope of the hedging policy. Remaining exposure is mitigated by matching CHF inflows and outflows where possible. Given the cash flow profile, the 12-month rolling hedging strategy, the limited impact on financial
Exchange rate risks on recognized financial assets and liabilities | ||||
DKK thousand | Cash and cash equivalents, securities | Receivables | Liabilities | Net position |
2025 | ||||
EUR | 542,846 | 248,939 | (820,956) | (29,171) |
USD | 190,202 | 478,811 | (299,307) | 369,706 |
CHF | 9,929 | 20,016 | (229,454) | (199,509) |
2024 | ||||
EUR | 208,849 | 660,007 | (1,530,566) | (661,710) |
USD | 334,980 | 619,176 | (1,218,425) | (264,269) |
CHF | 8,473 | 39,541 | (206,248) | (158,234) |
Sensitivity analysis on exchange rates | ||||
DKK thousand | Reasonably possible change in exchange rate | |||
Hypothetical change in equity | Hypothetical change in net result | |||
2025 | ||||
Change if higher USD-rate than actual rate | 10% | 71,573 | 65,539 | |
Change if higher EUR-rate than actual rate | 2% | 2,796 | (120) | |
Change if higher CHF-rate than actual rate | 5% | 35,592 | (813) | |
2024 | ||||
Change if higher USD-rate than actual rate | 8% | 30,868 | 29,544 | |
Change if higher EUR-rate than actual rate | 2% | (12,725) | (18,385) | |
Change if higher CHF-rate than actual rate | 9% | 54,515 | (17,809) |
performance, and the cost of hedging, management has determined that additional hedging is not warranted and will continue to monitor the exposure.
The sensitivity analysis shows the net effect it would have had on equity and profit for the year if the year-end exchange rates of USD, EUR and CHF had been 10%, 2% or 5%, respectively (USD, EUR and CHF had been 8%, 2% or 9%, respectively), higher than the actual exchange rates. A corresponding decrease in the actual exchange rates would have had an opposite (positive/negative) effect on net result and equity. The percentages used year-end 2025 for USD and CHF are based on the historical maximal currency rate spread from average in the period 2024 - 2025. The percentage used for EUR is based on the maximum spread in the ERM II framework.
Cash flow hedge \u2013 forward currency contracts | |||||
DKK thousand | Forward price | ||||
Contract amount based on agreed rates | Fair value as of December 31 | ||||
Fair value adjustment recognized in other compre-hensive income | |||||
2025 | |||||
Forward currency contracts (USD/DKK) | Sell USD | 6.31 - 6.47 | 510,073 | 5,126 | 43,106 |
Forward currency contracts (DKK/EUR) | Buy EUR | 7.40 | 518,153 | 4,532 | (3,546) |
9,658 | 39,560 | ||||
2024 | |||||
Forward currency contracts (USD/DKK) | Sell USD | 6.76 - 7.07 | 1,832,534 | (37,980) | (77,165) |
Forward currency contracts (DKK/EUR) | Buy EUR | 7.40 - 7.41 | 1,333,378 | 8,078 | 2,479 |
(29,902) | (74,686) | ||||
Cash flow hedge \u2013 interest rate swap | |||||
DKK thousand | Contract amount based on agreed rates | Fair value as of December 31 | |||
Fair value adjustment recognized in other compre-hensive income | |||||
2025 | |||||
Interest rate swap | |||||
DKK - fixed rate 0.9625% p.a. (expiry 2031) | 12,708 | 602 | (96) | ||
602 | (96) | ||||
2024 | |||||
Interest rate swap | |||||
DKK - fixed rate 0.9625% p.a. (expiry 2031) | 14,880 | 698 | (405) | ||
698 | (405) |
EUR 70 million (buy EUR 180 million) to hedge net USD cash flow during 2026 and EUR milestone payments in 2026.
", "dimensions": { "concept": "ifrs-full:DisclosureOfEffectOfChangesInForeignExchangeRatesExplanatory", "language": "en", "entity": "scheme:2138006JCDVYIN6INP51", "period": "2025-01-01T00:00:00/2026-01-01T00:00:00" } }, "f0__s8__7__262-1": { "value": "Cash flow hedge \u2013 forward currency contracts | |||||
DKK thousand | Forward price | ||||
Contract amount based on agreed rates | Fair value as of December 31 | ||||
Fair value adjustment recognized in other compre-hensive income | |||||
2025 | |||||
Forward currency contracts (USD/DKK) | Sell USD | 6.31 - 6.47 | 510,073 | 5,126 | 43,106 |
Forward currency contracts (DKK/EUR) | Buy EUR | 7.40 | 518,153 | 4,532 | (3,546) |
9,658 | 39,560 | ||||
2024 | |||||
Forward currency contracts (USD/DKK) | Sell USD | 6.76 - 7.07 | 1,832,534 | (37,980) | (77,165) |
Forward currency contracts (DKK/EUR) | Buy EUR | 7.40 - 7.41 | 1,333,378 | 8,078 | 2,479 |
(29,902) | (74,686) | ||||
Cash flow hedge \u2013 interest rate swap | |||||
DKK thousand | Contract amount based on agreed rates | Fair value as of December 31 | |||
Fair value adjustment recognized in other compre-hensive income | |||||
2025 | |||||
Interest rate swap | |||||
DKK - fixed rate 0.9625% p.a. (expiry 2031) | 12,708 | 602 | (96) | ||
602 | (96) | ||||
2024 | |||||
Interest rate swap | |||||
DKK - fixed rate 0.9625% p.a. (expiry 2031) | 14,880 | 698 | (405) | ||
698 | (405) |
EUR 70 million (buy EUR 180 million) to hedge net USD cash flow during 2026 and EUR milestone payments in 2026.
Credit risks
The primary credit risk relates to trade receivables. The Company assesses the expected credit losses also
considering changes in the macro environment that might impose an increased risk of losses. The Group\u00b4s customers are predominantly public authorities and renowned pharmaceutical companies and wholesalers, and the credit risk on the Group's receivables is there-fore considered to be very low. A loss allowance of DKK 3.9 million (DKK 3.0 million) has been recognized as of December 31, 2025, cf. note 19.
To manage credit risk regarding financial counterpar-ties, Bavarian Nordic only enters into derivative finan-cial contracts, repurchase contracts and money market deposits with financial counterparties possessing a satisfactory long-term credit rating from at least two out of the three selected ratings agencies: Standard and Poor\u2019s, Moody\u2019s and Fitch.
Cash and cash equivalents are not deemed to be subject to any special credit risk as they are deposited with Nordea and Danske Bank. The bond portfolio is invested in either Danish government bonds, Danish mortgage bonds or bonds issued by Danish banks with high ratings.
", "dimensions": { "concept": "ifrs-full:DisclosureOfFinancialInstrumentsByTypeOfInterestRateExplanatory", "language": "en", "entity": "scheme:2138006JCDVYIN6INP51", "period": "2025-01-01T00:00:00/2026-01-01T00:00:00" } }, "f0__s8__7__264": { "value": "Cash risks
The Group\u00b4s bank deposits are placed in deposit accounts without restrictions. The Group's cash and cash equivalents totaled DKK 1,714 million as of December 31, 2025 (DKK 1,623 million).
The Group's fixed rate bond portfolio expires as shown below. Amounts are stated excluding interest.
", "dimensions": { "concept": "ifrs-full:DisclosureOfCashAndCashEquivalentsExplanatory", "language": "en", "entity": "scheme:2138006JCDVYIN6INP51", "period": "2025-01-01T00:00:00/2026-01-01T00:00:00" } }, "f0__s8__7__252": { "value": "2025 | 2024 | |||
DKK thousand | Fair value as of December 31 | Effective interest | Fair value as of December 31 | Effective interest |
Bond portfolio | ||||
Within 0-2 years | 1,483,735 | 1.9% | 399,833 | 2.5% |
Within 3-5 years | 19,735 | 2.4% | - | - |
After 5 years | 115,534 | 3.2% | 151,705 | 2.8% |
Total | 1,619,004 | 2.0% | 551,538 | 2.6% |
Fluctuations in interest rate levels affect the Group's bond portfolio. A change in the interest rate level by 1 percentage point relative to the interest rate level on the balance sheet date will have an impact of DKK 15 million on the Group\u00b4s net result and equity (DKK 12 million).
The bond position with a duration of more than 5 years is a result of previous year's investment strategy. The Group is in process of adapting the bond portfolio to the amended investment strategy with the aim of reducing the duration of the portfolio.
Maturity of financial liabilities | 2025 | ||||
Undiscounted contractual cash flow | |||||
DKK thousand | Due within 1 year | ||||
Due between 1 and 5 years | Due after 5 years | Total | Carrying amount | ||
Credit institutions | 2,535 | 9,947 | 1,828 | 14,310 | 13,037 |
Lease liabilities | 43,371 | 68,493 | 15,378 | 127,242 | 117,833 |
Prepayment from customers | 9,949 | 9,949 | 9,949 | ||
Trade payables | 999,744 | - | - | 999,744 | 999,744 |
Other liabilities | 531,235 | - | - | 531,235 | 531,235 |
Non-derivative financial liabilities | 1,586,834 | 78,440 | 17,206 | 1,682,480 | 1,671,798 |
Derivative financial liabilities | - | - | - | - | - |
2024 | |||||
Undiscounted contractual cash flow | |||||
DKK thousand | Due within 1 year | ||||
Due between 1 and 5 years | Due after 5 years | Total | Carrying amount | ||
Deferred consideration | 1,104,708 | - | - | 1,104,708 | 1,081,465 |
Credit institutions | 2,588 | 10,162 | 4,345 | 17,095 | 15,127 |
Lease liabilities | 39,602 | 80,357 | - | 119,959 | 113,123 |
Prepayment from customers | 131,408 | 131,408 | 131,408 | ||
Trade payables | 1,045,134 | - | - | 1,045,134 | 1,045,134 |
Other liabilities | 467,555 | - | - | 467,555 | 467,555 |
Non-derivative financial liabilities | 2,790,995 | 90,519 | 4,345 | 2,885,859 | 2,853,812 |
Derivative financial liabilities | 29,902 | - | - | 29,902 | 29,902 |
Securities (level 1)
The portfolio of publicly traded government bonds, publicly traded mortgage bonds and bank bonds is valued at listed prices and price quotas.
Derivative financial instruments (level 2)
Currency forward contracts, currency option contracts and interest swap contracts are valued according to generally accepted valuation methods based on rele-vant observable swap curves and exchange rates.
Fair value hierarchy for financial instruments measured at fair value | 2025 | ||
DKK thousand | Level 1 | Level 2 | Total |
Securities | 1,619,004 | - | 1,619,004 |
Financial assets measured at fair value through the income statement | 1,619,004 | - | 1,619,004 |
Derivative financial instruments to hedge future cash flow (currency) | - | 9,658 | 9,658 |
Derivative financial instruments to hedge future cash flow (interest) | - | 602 | 602 |
Financial assets/liabilities used as hedging instruments | - | 10,260 | 10,260 |
2024 | |||
DKK thousand | Level 1 | Level 2 | Total |
Securities | 551,538 | - | 551,538 |
Financial assets measured at fair value through the income statement | 551,538 | - | 551,538 |
Derivative financial instruments to hedge future cash flow (currency) | - | (29,902) | (29,902) |
Derivative financial instruments to hedge future cash flow (interest) | - | 698 | 698 |
Financial assets/liabilities used as hedging instruments | - | (29,204) | (29,204) |
Fair value hierarchy for financial instruments measured at fair value | 2025 | ||
DKK thousand | Level 1 | Level 2 | Total |
Securities | 1,619,004 | - | 1,619,004 |
Financial assets measured at fair value through the income statement | 1,619,004 | - | 1,619,004 |
Derivative financial instruments to hedge future cash flow (currency) | - | 9,658 | 9,658 |
Derivative financial instruments to hedge future cash flow (interest) | - | 602 | 602 |
Financial assets/liabilities used as hedging instruments | - | 10,260 | 10,260 |
2024 | |||
DKK thousand | Level 1 | Level 2 | Total |
Securities | 551,538 | - | 551,538 |
Financial assets measured at fair value through the income statement | 551,538 | - | 551,538 |
Derivative financial instruments to hedge future cash flow (currency) | - | (29,902) | (29,902) |
Derivative financial instruments to hedge future cash flow (interest) | - | 698 | 698 |
Financial assets/liabilities used as hedging instruments | - | (29,204) | (29,204) |
Note 24
Deferred consideration
DKK thousand | Due within 1 year | Due between 1 and 5 year | Due after 5 years | Total |
2024 | ||||
Deferred consideration, product rights | 731,520 | - | - | 731,520 |
Deferred consideration, development project | 349,945 | - | - | 349,945 |
Total | 1,081,465 | - | - | 1,081,465 |
Product rights
The Asset Purchase Agreement concluded with GSK in 2019 included milestone payments relating to transfer and registration of marketing authorizations, tech-nology transfer of different steps of the production and packaging activities as well as a milestone payment when all services agreed to be rendered by GSK has been completed. In total EUR 470 million. The Asset Purchase Agreement with GSK also included a sales milestone of EUR 25 million. As per December 31, 2025 all milestones have been achieved and invoiced by GSK. Payment for the completion milestone invoice is outstanding as per December 31, 2025 according to agreement, and is recognized as trade payables.
One technology transfer milestone and the completion milestone were achieved during 2025 and were recog-nized as cash flow from investment activities, in total DKK 100 million.
The carrying amount are measured using a discount rate of 4% per annum. The discount rate was deter-mined at intial recognition based on an interest rate on a similar loan of the same size and maturity as the contingent milestone payments and the Company's credit rating as of December 31, 2019.
The fair value of the deferred consideration as per December 31, 2024 amounted to DKK 725 million, measured using the updated discount rate of 5.97%.
The discount rate was determined based on the same components as described above.
Development project
The Purchase and Sale Agreement concluded with Emergent BioSolutions in 2023 included four mile-stone payments relating to submission and approval of Biologics License Application (BLA) to FDA and Marketing Authorization Application to EMA for the chikungunya development asset. In total USD 80 million. In first half of 2025 the last two milestones totalling USD 50 million were achieved and recognized as cash flow from investment activities.
The carrying amount are measured using a discount rate of 6% per annum. The discount rate was deter-mined at intial recognition based on an interest rate on a similar loan of the same size and maturity as the
contingent milestone payments and the Company's credit rating as of May 15, 2023.
The fair value of the deferred consideration as per December 31, 2024 amounted to DKK 350 million, measured using the updated discount rate of 5.97%. The discount rate was determined based on the same components as described above.
The Purchase and Sale Agreement concluded with Emergent BioSolutions in May 2023 includes an earnout payment starting at USD 30 million. The earnout payment relates to sale of Vivotif and Vaxchora. As per December 31, 2025 Management does not judge the sales milestone to be probable and therefore the earnout payment has not been recognized as either part of the project rights (note 15) nor the deferred consideration.
Deferred consideration including contingent milestone payments is recognized when its payment is probable and it can be measured reliably and is at initial recog-nition measured at fair value which equals present value of future deferred payments. Subsequently, the deferred consideration is measured at amortized cost. This means that the difference between the present value of the consideration and the nominal amounts
due is recognized in the income statement as a finan-cial expense over the period until expected payment date using the effective interest method.
The expected phasing of future payments and the probability of contingent payments are assessed on each reporting date and the impact is recognized as a financial item.
", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForContingentLiabilitiesAndContingentAssetsExplanatory", "language": "en", "entity": "scheme:2138006JCDVYIN6INP51", "period": "2025-01-01T00:00:00/2026-01-01T00:00:00" } }, "f0__s8__7__277-1": { "value": "Note 25
Debt to credit institutions
DKK thousand | Due within 1 year | Due between 1 and 5 year | Due after 5 years | Total |
2025 | ||||
Mortgage1 | 2,147 | 9,091 | 1,799 | 13,037 |
Total | 2,147 | 9,091 | 1,799 | 13,037 |
2024 | ||||
Mortgage1 | 2,074 | 8,869 | 4,184 | 15,127 |
Total | 2,074 | 8,869 | 4,184 | 15,127 |
1Floating interest - swapped to fixed interest of 0.9625% - expiry 2031
The fair value of the debt to credit institutions amounts to DKK 13.0 million (DKK 15.1 million). The fair value of mortgage debt is based on the market value of the underlying bonds set by the bank (level 2).
The tables detail changes in the Group's liabilities arising from financing activities, both cash and
non-cash changes. Liabilities arising from financing activities are those for which cash flows were, or future cash flows will be, classified in the Group's consolidated statement of cash flow as cash flows from financing activities.
Cash flow from financing activities | ||||
DKK thousand | January 1, 2025 | Cash movement | Non-cash movement | December 31, 2025 |
2025 | ||||
Mortgage | 15,127 | (2,090) | - | 13,037 |
Lease liabilities | 113,123 | (40,813) | 45,523 | 117,833 |
Total liabilities from financing activities | 128,250 | (42,903) | 45,523 | 130,870 |
DKK thousand | January 1, 2024 | Cash movement | Non-cash movement | December 31, 2024 |
2024 | ||||
Mortgage | 17,048 | (1,921) | - | 15,127 |
Lease liabilities | 128,254 | (41,639) | 26,508 | 113,123 |
Total liabilities from financing activities | 145,302 | (43,560) | 26,508 | 128,250 |
Note 25
Debt to credit institutions
DKK thousand | Due within 1 year | Due between 1 and 5 year | Due after 5 years | Total |
2025 | ||||
Mortgage1 | 2,147 | 9,091 | 1,799 | 13,037 |
Total | 2,147 | 9,091 | 1,799 | 13,037 |
2024 | ||||
Mortgage1 | 2,074 | 8,869 | 4,184 | 15,127 |
Total | 2,074 | 8,869 | 4,184 | 15,127 |
1Floating interest - swapped to fixed interest of 0.9625% - expiry 2031
The fair value of the debt to credit institutions amounts to DKK 13.0 million (DKK 15.1 million). The fair value of mortgage debt is based on the market value of the underlying bonds set by the bank (level 2).
The tables detail changes in the Group's liabilities arising from financing activities, both cash and
non-cash changes. Liabilities arising from financing activities are those for which cash flows were, or future cash flows will be, classified in the Group's consolidated statement of cash flow as cash flows from financing activities.
Cash flow from financing activities | ||||
DKK thousand | January 1, 2025 | Cash movement | Non-cash movement | December 31, 2025 |
2025 | ||||
Mortgage | 15,127 | (2,090) | - | 13,037 |
Lease liabilities | 113,123 | (40,813) | 45,523 | 117,833 |
Total liabilities from financing activities | 128,250 | (42,903) | 45,523 | 130,870 |
DKK thousand | January 1, 2024 | Cash movement | Non-cash movement | December 31, 2024 |
2024 | ||||
Mortgage | 17,048 | (1,921) | - | 15,127 |
Lease liabilities | 128,254 | (41,639) | 26,508 | 113,123 |
Total liabilities from financing activities | 145,302 | (43,560) | 26,508 | 128,250 |
Loans are measured at the time of borrowing at fair value less any transaction costs. Subsequently, debt is measured at amortized cost. This means that the differ-ence between the proceeds of the loan and the amount
to be repaid is recognized in the income statement over the term of the loan as a financial expense using the effective interest method.
", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForBorrowingsExplanatory", "language": "en", "entity": "scheme:2138006JCDVYIN6INP51", "period": "2025-01-01T00:00:00/2026-01-01T00:00:00" } }, "f0__s8__7__284": { "value": "Note 26
Retirement benefit obligations
Accounting policies
In defined contribution plans, the Group makes regular payments of fixed contributions to independent pension funds and insurance companies. The Group is under no obligation to pay additional contributions. Costs for defined contribution plans are recognized in the income statement as the Group assumes an obliga-tion to make the payment.
In defined benefit plans, the Group is under an obliga-tion to pay a defined benefit on retirement. The actuar-ially calculated present value less the fair value of any plan assets is recognized in the balance sheet under retirement benefit obligations. The total service costs of the year plus calculated interest based on actuarial estimates and financial assumptions at the beginning of the year are recognized in the income statement. The difference between the forecast development in plan assets and liabilities and the realized values at the end of the year is called actuarial gains or losses and is recognized in other comprehensive income. In connection with a change in benefits regarding the employees\u2019 employment with the Group to date, there will be a change in the actuarial calculation of the net present value, which is taken directly to the income statement.
Defined contribution plans
The Group offers pension plans to all employees in Denmark and abroad. Most of the pension plans are defined contribution plans, expect for the pension plan in Bavarian Nordic Berna GmbH, see below. The Group funds the plans through regular payments of premiums to independent insurance companies responsible for the pension obligations towards the beneficiaries. Once the pension contributions for defined contribution plans have been made, the Group has no further obligation towards current or former employees. Contributions to defined contribution plans are recognized in the income statement when paid.
Defined benefit plans
The pension plan in Bavarian Nordic Berna GmbH is part of a collective foundation in which other plans of non-related employers also participate, and the different plans all participate in the various risks relating to the foundation.
Defined benefit liabilities are recognized in the balance sheet and in the income statement as indicated below.
Employees from Bavarian Nordic Switzerland AG was transferred to Bavarian Nordic Berna GmbH in August 2024 and were included in the pension plan as from December 31, 2024. The previous pension plan in Bavarian Nordic Switzerland AG was recognized as a contribution benefit plan and therefore no pension obligation was recognized. The net assets under the Bavarian Nordic Berna GmbH pension plan were adjusted in 2024 to include the transferred employees.
DKK thousand | 2025 | 2024 |
Defined contribution plans | 91,456 | 84,966 |
Defined benefit plans | 28,313 | 31,205 |
Cost of pension plans recognized in income statement | 119,769 | 116,171 |
Current service cost | 26,897 | 12,749 |
Past service cost | - | 17,186 |
Administration expenses | 431 | 309 |
Net interest expenses | 985 | 961 |
Cost of defined benefit plans recognized in income statement | 28,313 | 31,205 |
Actuarial gains/losses on pension obligations | 4,449 | (89,584) |
Actuarial gains/losses on plan assets | 31,656 | 72,194 |
Actuarial gains/losses on defined benefit plans recognized in other comprehensive income | 36,105 | (17,390) |
Plan assets as of January 1 | 387,481 | 221,024 |
Exchange adjustments | 4,897 | (3,492) |
Actual rate of interest | 3,891 | 3,006 |
Actuarial gains/losses on plan assets | 31,656 | 72,194 |
Administration expenses paid | (432) | (309) |
Employer contributions | 23,971 | 14,182 |
Employee contributions | 13,781 | 9,358 |
Benefit paid out | 10,624 | 29,582 |
Other restructuring events | - | 41,936 |
Plan assets as of December 31 | 475,869 | 387,481 |
DKK thousand | 2025 | 2024 |
Specification of present value of defined benefit obligation | ||
Present value of defined benefit liability as of January 1 | 501,070 | 301,756 |
Exchange adjustments | 6,037 | (5,048) |
Current service costs | 26,897 | 12,749 |
Past service costs | - | 17,186 |
Calculated interest on liability | 4,875 | 3,967 |
Actuarial gains/losses, financial assumptions | (41,175) | 17,250 |
Actuarial gains/losses, experience | 36,726 | 72,334 |
Employee contributions | 13,781 | 9,358 |
Benefit paid out | 10,624 | 29,582 |
Other restructuring events | - | 41,936 |
Present value of defined benefit liability as of December 31 | 558,835 | 501,070 |
Fair value of plan assets as of December 31 | (475,869) | (387,481) |
Net liability of defined benefit plans as of December 31 | 82,966 | 113,589 |
Net liability of defined benefit plans as of January 1 | 113,589 | 80,732 |
Expenditure for the year | 28,313 | 31,205 |
Actuarial gains/losses on pension obligation | (4,449) | 89,584 |
Exchange adjustment | 1,140 | (1,556) |
Actuarial gains/losses on plan assets | (31,656) | (72,194) |
Payments received | (23,971) | (14,182) |
Net liability of defined benefit plans as of December 31 | 82,966 | 113,589 |
The contributions to the plan for 2026 are expected in the same level as in 2025.
DKK thousand | 2025 | 2024 |
Percentage of plan assets invested in asset category | ||
Equity | 33.7% | 33.5% |
Bonds | 25.1% | 25.5% |
Property | 14.4% | 13.6% |
Other | 26.8% | 27.4% |
Actuarial assumptions applied at the balance sheet date (expressed as an average) | ||
Discount rate | 1.35% | 1.00% |
Future rate of salary increases | 1.60% | 1.80% |
Inflation | 0.90% | 1.10% |
Assumptions regarding future mortality are set based on actuarial advice in accordance with published statistics and experience. These assumptions translate into an average life expectancy in years for a pensioner retiring at age 65 as follows: | ||
Life expectancies | ||
Retiring aged 65 at the end of the reporting period | ||
Male | 22.2 | 22.1 |
Female | 24.0 | 23.9 |
Retiring aged 65, 20 years after the end of the reporting period | ||
Male | 24.2 | 24.1 |
Female | 25.9 | 25.8 |
The below sensitivity analysis shows the change in one of the actuarial assumptions, while other assumptions are kept constant. In practice, this is unlikely to occur as changes in some of the assumptions may be correlated.
Percentage increase/decrease in the gross liability resulting from a change in a single actuarial assumption
DKK thousand | 2025 | 2024 |
+0.5%-point | +0.5%-point | |
Discount rate | -7.7% | -7.7% |
+1 year | +1 year | |
Life expectancy | 1.6% | 1.7% |
Note 29
Share-based payment
Warrant overview \u2013 2025 | Outstanding as of January 1 | Additions | Exercised | Annulled | Terminated | Outstanding as of December 31 | Can be exercised as of December 31 | Average exercise price (DKK) |
November 2020 | 811,014 | - | (363,156) | (2,315) | (445,543) | - | - | 207 |
November 2021 | 610,463 | - | - | (6,079) | - | 604,384 | 604,384 | 353 |
April 2022 | 81,872 | - | (18,715) | - | - | 63,157 | 63,157 | 190 |
December 2022 | 832,394 | - | - | (48,896) | - | 783,498 | - | 225/271 |
December 2023 | 1,143,379 | - | - | (145,394) | - | 997,985 | - | 172/192 |
December 2024 | 1,156,783 | - | - | (115,012) | - | 1,041,771 | - | 199/223 |
December 2025 | - | 1,254,969 | - | - | - | 1,254,969 | - | 217 |
Total | 4,635,905 | 1,254,969 | (381,871) | (317,696) | (445,543) | 4,745,764 | 667,541 | |
Warrant overview \u2013 2025 | Outstanding as of January 1 | Additions | Exercised | Annulled | Terminated | Transferred | Outstanding as of December 31 | |
Corporate Management | 608,132 | - | - | - | (179,855) | - | 428,277 | |
Other Executive Management | 385,387 | - | - | - | (47,970) | (98,508) | 238,909 | |
Other employees | 3,098,689 | 1,254,969 | (189,549) | (317,696) | (80,845) | (276,669) | 3,488,899 | |
Resigned employees | 543,697 | - | (192,322) | - | (136,873) | 375,177 | 589,679 | |
Total | 4,635,905 | 1,254,969 | (381,871) | (317,696) | (445,543) | - | 4,745,764 | |
Weighted average exercise price (DKK) | 234 | 217 | 206 | 218 | 207 | - | 235 | |
Weighted average share price at exercise (DKK) | 237 | |||||||
Number of warrants which can be exercised as of December 31, 2025 | 667,541 | |||||||
at a weighted average exercise price of DKK | 338 |
Warrant overview \u2013 2024 | Outstanding as of January 1 | Additions | Exercised | Annulled | Terminated | Transferred | Outstanding as of December 31 |
Corporate Management | 669,064 | 80,839 | (141,771) | - | - | - | 608,132 |
Other Executive Management | 484,041 | 37,435 | (7,039) | - | - | (129,050) | 385,387 |
Other employees | 2,916,601 | 1,038,509 | (404,904) | (271,626) | (2,916) | (176,975) | 3,098,689 |
Resigned employees | 451,209 | - | (203,309) | - | (10,228) | 306,025 | 543,697 |
Total | 4,520,915 | 1,156,783 | (757,023) | (271,626) | (13,144) | - | 4,635,905 |
Weighted average exercise price (DKK) | 226 | 221 | 167 | 223 | 147 | - | 234 |
Weighted average share price at exercise (DKK) | 241 | ||||||
Number of warrants which can be exercised as of December 31, 2024 | 811,014 | ||||||
at a weighted average exercise price of DKK | 207 | ||||||
Specification of parameters for Black-Scholes model | Nov. 2020 | Nov. 2021 | Apr. 2022 | Dec. 20223 | Dec. 20233 | Dec. 20243 | Dec. 2025 |
Average share price | 179.84 | 307.20 | 171.35 | 224.70 | 172.40 | 198.90 | 188.00 |
Average exercise price at grant | 206.82 | 353.06 | 190.11 | 270.91 | 191.58 | 223.33 | 216.50 |
Average exercise price at grant \u2013 Executive Management | 224.70 | 172.40 | 198.90 | ||||
Applied volatility rate2 | 39.8% | 41.8% | 42.3% | 46.6% | 53.3% | 57.7% | 57.1% |
Expected life (years) | 3.0 | 3.0 | 3.0 | 3.0 | 3.0 | 3.0 | 3.0 |
Expected dividend per share | - | - | - | - | - | - | - |
Risk-free interest rate p.a. | -0.66% | -0.53% | 0.39% | 2.04% | 2.55% | 1.65% | 2.00% |
Fair value per share at grant1 | 41 | 76 | 47 | 64 | 62 | 75 | 70 |
Fair value per share at grant \u2013 Executive Management1 | 78 | 68 | 82 |
Recognized costs in 2025 DKK 61.3 million compared to DKK 57.0 million in 2024.
1Fair value of each warrant at grant date applying the Black-Scholes model
2The applied volatility is based on the volatility for a peer group.
3The December 2022, December 2023 and December 2024 program have two set of exercise conditions. Executive Manage-ment can subscribe future shares at a exercise price of DKK 224.70/172.40/198.90 per share equivalent to the market price of Bavarian Nordic's shares at the time of grant. Vesting of the warrants is subject to prior fulfilment of KPI's as determined by the Board of Directors. Other employees can subscribe future shares at a exercise price of DKK 270.91/191.58/223.33 per share, determined as the average market price (closing price) of the Company's shares on Nasdaq Copenhagen over a period of 15 business days prior to grant plus 15%.
Exercise periods | Can be exercised wholly or partly in a period of 14 days commencing from the day of publication of: | |||
December 2025 | Annual Report 2028 | Interim Report Q1 2029 | Interim Report Q2 2029 | Interim Report Q3 2029 |
Annual Report 2029 | Interim Report Q1 2030 | Interim Report Q2 2030 | Interim Report Q3 2030 | |
December 2024 | Annual Report 2027 | Interim Report Q1 2028 | Interim Report Q2 2028 | Interim Report Q3 2028 |
Annual Report 2028 | Interim Report Q1 2029 | Interim Report Q2 2029 | Interim Report Q3 2029 | |
December 2023 | Annual Report 2026 | Interim Report Q1 2027 | Interim Report Q2 2027 | Interim Report Q3 2027 |
Annual Report 2027 | Interim Report Q1 2028 | Interim Report Q2 2028 | Interim Report Q3 2028 | |
December 2022 | Annual Report 2025 | Interim Report Q1 2026 | Interim Report Q2 2026 | Interim Report Q3 2026 |
Annual Report 2026 | Interim Report Q1 2027 | Interim Report Q2 2027 | Interim Report Q3 2027 | |
April 2022 | Interim Report Q2 2025 | Interim Report Q3 2025 | Annual Report 2025 | Interim Report Q1 2026 |
Interim Report Q2 2026 | Interim Report Q3 2026 | Annual Report 2026 | Interim Report Q1 2027 | |
November 2021 | Annual Report 2024 | Interim Report Q1 2025 | Interim Report Q2 2025 | Interim Report Q3 2025 |
Annual Report 2025 | Interim Report Q1 2026 | Interim Report Q2 2026 | Interim Report Q3 2026 |
Restricted stock units
In March 2025, the Board of Directors decided to post-pone the payment of half of the achieved cash bonus for members of the Executive Management for 3 years, converting the postponed bonus of DKK 10.2 million into 59,762 unconditional restricted stock units using the share price of the Company at grant date (DKK 172). The Board of Directors decided to grant addi-tional restricted stock units free of charge on expiry of a 3 years period (so-called \"matching shares\") upon the recipient still being employed in March 2028. One matching share is granted for each two acquired restricted stock units. The maximum number of matching shares is 29,879. The initial granted restricted stock units and the potential matching shares total 89,641 shares.
At the annual general meeting in April 2024, the Board of Directors were granted a total of 7,754 unconditional restricted stock units corresponding to 50% of the annual fixed fee of DKK 1.9 million (excl. committee fee). The restricted stock units will be delivered after 3 years in May 2028.
In December 2025, Executive Management was granted 104,009 performance restricted stock units with a total value of DKK 20 million.
In January 2025, the Company bought back 760,275 of its own shares for the purpose of adjusting the capital structure and meeting the long-term obliga-tions relating to the Company\u2019s share-based incentive programs for the Board of Directors and Executive Management.
Outstanding restricted stock units | 2025 | |||||
Outstanding as of January 1 | Granted during the year | Released during the year | ||||
Outstanding as of December 31 | Value at grant date (DKK) | Vesting date | ||||
Executive Management: | ||||||
Performance restricted stock units 2025 | - | 104,009 | - | 104,009 | 188 | Mar. 2029 |
Conversion of cash bonus for 2024 | - | 59,762 | - | 59,762 | 172 | Mar. 2028 |
Matching shares - bonus 2024 | - | 29,879 | - | 29,879 | 172 | Mar. 2028 |
Performance restricted stock units 2024 | 46,700 | - | - | 46,700 | 194 | Mar. 2028 |
Conversion of cash bonus for 2023 | 58,034 | - | - | 58,034 | 163 | Mar. 2027 |
Matching shares - bonus 2023 | 29,015 | - | - | 29,015 | 163 | Mar. 2027 |
Performance restricted stock units 2023 | 61,602 | - | - | 61,602 | 167 | Mar. 2027 |
Conversion of cash bonus for 2022 | 22,429 | - | - | 22,429 | 227 | Mar. 2026 |
Matching shares - bonus 2022 | 11,213 | - | - | 11,213 | 227 | Mar. 2026 |
Conversion of cash bonus for 2021 | 22,578 | - | (22,578) | - | 163 | Mar. 2025 |
Matching shares - bonus 2021 | 11,288 | - | (11,288) | - | 163 | Mar. 2025 |
CEO retention plan | 17,109 | - | (17,109) | - | 156 | May 2025 |
Matching shares - CEO retention plan | 8,554 | - | (8,554) | - | 156 | May 2025 |
Sign-on bonus COO | 4,446 | - | (4,446) | - | 165 | May 2025 |
Matching shares - sign-on COO | 2,223 | - | (2,223) | - | 165 | May 2025 |
Executive Management | 295,191 | 193,650 | (66,198) | 422,643 | ||
Board of Directors: | ||||||
Fee 2025 | - | 7,864 | - | 7,864 | 238 | May 2028 |
Fee 2024 | 13,637 | - | - | 13,637 | 152 | May 2027 |
Fee 2023 | 10,640 | - | - | 10,640 | 194 | May 2026 |
Fee 2022 | 11,467 | - | (11,467) | - | 153 | May 2025 |
Board of Directors | 35,744 | 7,864 | (11,467) | 32,141 | ||
Total | 330,935 | 201,514 | (77,665) | 454,784 |
The grant of the initial restricted stock units to the Exec-utive Management related to conversion of cash bonus (59,762 shares) had no impact on the income statement for 2025, as the corresponding cash bonus (DKK 10.2 million) was accrued in 2024, though the amount has been reclassified from \"Salary and wages\" to \"Share-based payment\" in the staff cost note (note 8). The obli-gation related to the matching shares amount to DKK 5.1 million measured at the same fair value as the initial restricted stock units (DKK 172). The obligation will be expensed over the three year vesting period.
The grant of performance restricted stock units to the Executive Management (104,009 shares) will be expensed over the three year vesting period.
During 2025, DKK 21.3 million (DKK 19.6 million) has been expensed and recognized as share-based payment related to Executive Management.
The grant of restricted stock units to the Board of Directors (7,864 shares - DKK 1.9 million) were fully expensed at grant.
Outstanding restricted stock units | 2024 | |||||
Outstanding as of January 1 | Granted during the year | Released during the year | ||||
Outstanding as of December 31 | Value at grant date (DKK) | Vesting date | ||||
Executive Management: | ||||||
Performance restricted stock units 2024 | - | 46,700 | - | 46,700 | 194 | Mar. 2028 |
Conversion of cash bonus for 2023 | - | 58,034 | - | 58,034 | 163 | Mar. 2027 |
Matching shares - bonus 2023 | - | 29,015 | - | 29,015 | 163 | Mar. 2027 |
Performance restricted stock units 2023 | 61,602 | - | - | 61,602 | 167 | Mar. 2027 |
Conversion of cash bonus for 2022 | 22,429 | - | - | 22,429 | 227 | Mar. 2026 |
Matching shares - bonus 2022 | 11,213 | - | - | 11,213 | 227 | Mar. 2026 |
Conversion of cash bonus for 2021 | 22,578 | - | - | 22,578 | 163 | Mar. 2025 |
Matching shares - bonus 2021 | 11,288 | - | - | 11,288 | 163 | Mar. 2025 |
CEO retention plan | 17,109 | - | - | 17,109 | 156 | May 2025 |
Matching shares - CEO retention plan | 8,554 | - | - | 8,554 | 156 | May 2025 |
Sign-on bonus COO | 4,446 | - | - | 4,446 | 165 | May 2025 |
Matching shares - sign-on COO | 2,223 | - | - | 2,223 | 165 | May 2025 |
Conversion of cash bonus for 2020 | 16,413 | - | (16,413) | - | 222 | Mar. 2024 |
Matching shares - bonus 2020 | 8,207 | - | (8,207) | - | 222 | Mar. 2024 |
Executive Management | 186,062 | 133,749 | (24,620) | 295,191 | ||
Board of Directors: | ||||||
Fee 2024 | - | 13,637 | - | 13,637 | 152 | May 2027 |
Fee 2023 | 10,640 | - | - | 10,640 | 194 | May 2026 |
Fee 2022 | 11,467 | - | - | 11,467 | 153 | May 2025 |
Fee 2021 | 7,127 | - | (7,127) | - | 273 | Apr. 2024 |
Board of Directors | 29,234 | 13,637 | (7,127) | 35,744 | ||
Total | 215,296 | 147,386 | (31,747) | 330,935 |
Total share-based payments
Below a specification of all share-based payments expensed in 2025 and 2024. The amounts reconcile to note 8.
DKK thousand | 2025 | 2024 |
Warrants | 61,323 | 56,958 |
Restricted stock units | 23,163 | 21,707 |
Share-based payment recognized directly in equity | 84,486 | 78,665 |
Phantom share program | - | 7 |
Share-based payment recognized as a liability (change during the year) | - | 7 |
Total share-based payment expensed, cf. note 8 | 84,486 | 78,672 |
Non-cash adjustment in cash flow statement | 84,486 | 78,672 |
Accounting policies
Share-based incentive plans in which employees can only opt to buy shares in the Company (warrants) are measured at the equity instruments\u2019 fair value at the grant date and recognized in the income statement over the three-year vesting period. The balancing item is recognized directly in equity. The fair value on the date of grant is determined using the Black-Scholes model.
Restricted stock units and performance restricted stock units are measured at fair value at grant date.
For Executive Management cash bonus converted to restricted stock units, the number of restricted stock units are calculated by dividing the allocated cash bonus amount by the share price of the Company at grant date. As the cash bonus has already been accrued and expensed in the income statement, the grant of restricted stock units has no additional impact on the income statement. The accrued liability for the converted cash bonus is reclassified to equity. Matching shares are measured at the same fair value as the initial restricted stock units and expensed over the three year vesting period. The balancing item is recog-nized directly in equity.
Performance restricted stock units granted to Execu-tive Management as part of their long-term incentive scheme are expensed over the three-year vesting period with the balancing item recognized directly in equity. Vesting is subject to achievement of certain Key Performance Indicators (\u201cKPIs\u201d) as determined by the
Board of Directors. Achievements of KPI's is assessed annually and costs related to not awarded warrants are reversed.
Restricted stock units granted as sign-on bonus for members of the Executive Management and restricted stock units granted to the Board of Directors are expensed at grant date with the balancing item recog-nized directly in equity.
Incentive plans
In order to motivate and retain key employees and encourage the achievement of common goals for employees, management and shareholders, the Company has established incentive plans by way of warrant programs and restricted stock units programs, the latter only for members of the Executive Manage-ment and Board of Directors.
Warrants
The Board of Directors has been granting warrants to the Company\u00b4s management and selected employees of the Company and its subsidiaries.
The warrants are granted in accordance with the authorizations given to the Board of Directors by the shareholders. The Board of Directors has fixed the terms of and the size of the grants of warrants, taking into account authorizations from the shareholders, the Group's guidelines for incentive pay, an assessment of expectations of the recipient\u00b4s work efforts and contri-bution to the Group\u00b4s growth, as well as the need to
motivate and retain the recipient. Grant takes place on the date of establishment of the program. Exercise of warrants is by default subject to continuing employ-ment with the Group. The warrants granted are subject to the provisions of the Danish Public Companies Act regarding termination of employees prior to their exercise of warrants in the case of recipients who are subject to the act.
For warrants granted to Executive Management in December 2022 and onwards, vesting is subject to achievement of certain Key Performance Indicators (\u201cKPIs\u201d) as determined by the Board of Directors. Number of granted warrants are adjusted on an annual basis based on performance. The recognized costs are adjusted accordingly. Executive Management was not granted warrants in 2025.
Warrants
The Board of Directors has been granting warrants to the Company\u00b4s management and selected employees of the Company and its subsidiaries.
The warrants are granted in accordance with the authorizations given to the Board of Directors by the shareholders. The Board of Directors has fixed the terms of and the size of the grants of warrants, taking into account authorizations from the shareholders, the Group's guidelines for incentive pay, an assessment of expectations of the recipient\u00b4s work efforts and contri-bution to the Group\u00b4s growth, as well as the need to
motivate and retain the recipient. Grant takes place on the date of establishment of the program. Exercise of warrants is by default subject to continuing employ-ment with the Group. The warrants granted are subject to the provisions of the Danish Public Companies Act regarding termination of employees prior to their exercise of warrants in the case of recipients who are subject to the act.
For warrants granted to Executive Management in December 2022 and onwards, vesting is subject to achievement of certain Key Performance Indicators (\u201cKPIs\u201d) as determined by the Board of Directors. Number of granted warrants are adjusted on an annual basis based on performance. The recognized costs are adjusted accordingly. Executive Management was not granted warrants in 2025.
", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForWarrantsExplanatory", "language": "en", "entity": "scheme:2138006JCDVYIN6INP51", "period": "2025-01-01T00:00:00/2026-01-01T00:00:00" } }, "f0__s8__7__294": { "value": "The grant of the initial restricted stock units to the Exec-utive Management related to conversion of cash bonus (59,762 shares) had no impact on the income statement for 2025, as the corresponding cash bonus (DKK 10.2 million) was accrued in 2024, though the amount has been reclassified from \"Salary and wages\" to \"Share-based payment\" in the staff cost note (note 8). The obli-gation related to the matching shares amount to DKK 5.1 million measured at the same fair value as the initial restricted stock units (DKK 172). The obligation will be expensed over the three year vesting period. ", "dimensions": { "concept": "ifrs-full:DisclosureOfReclassificationsOrChangesInPresentationExplanatory", "language": "en", "entity": "scheme:2138006JCDVYIN6INP51", "period": "2025-01-01T00:00:00/2026-01-01T00:00:00" } }, "f0__s8__7__298": { "value": "Note 30
Contingent liabilities and other contractual obligations
No contingent liabilities exist as per December 31, 2025
Earnout to Emergent
The Purchase and Sale Agreement concluded with Emergent BioSolutions in May 2023 includes an earnout payment starting at USD 30 million. The earnout payment relates to sale of Vivotif and Vaxchora. As per December 31, 2025 Management does not judge the sales milestone to be probable and therefore the earnout payment has not been recognized as either part of the project rights (note 15) nor the deferred consideration (note 24).
License agreements National Cancer Institute
The Group has license agreements with the National Cancer Institute (NCI) and Public Health Service (PHS) in the U.S. for PROSTVAC, CV301 and BN-Brachyury, respec-tively. The agreements include contingent liabilities for the Group to pay performance-based royalties, if and when certain milestone events are achieved. Further, the agreements include potential contingent liabilities
for the Group to pay additional sublicensing royalties on the fair market value of consideration received, if and when the Group grants such sublicenses. Payments considered remote are not included in the amounts above.
Company mortgage
The Company has by letter of indemnity granted Nordea a floating charge on unsecured claims arising from the sale of goods and services and stocks of raw materials, intermediate products and finished products, DKK 150 million (DKK 150 million). The floating charge secures the operating credit line of DKK 20 million and the line for trading in financial instruments, DKK 50 million (DKK 50 million).
Lawsuits
Based on management's assessment the Group is not involved in any lawsuits or arbitration cases which could have a material impact on the Group's financial position or results of operations.
DKK thousand | 2025 | 2024 |
Collaborative agreements | ||
Contractual obligations with research (CRO) and manufacturing (CMO) partners. | ||
- Due within 1 year | 118,368 | 139,183 |
Note 30
Contingent liabilities and other contractual obligations
No contingent liabilities exist as per December 31, 2025
Earnout to Emergent
The Purchase and Sale Agreement concluded with Emergent BioSolutions in May 2023 includes an earnout payment starting at USD 30 million. The earnout payment relates to sale of Vivotif and Vaxchora. As per December 31, 2025 Management does not judge the sales milestone to be probable and therefore the earnout payment has not been recognized as either part of the project rights (note 15) nor the deferred consideration (note 24).
License agreements National Cancer Institute
The Group has license agreements with the National Cancer Institute (NCI) and Public Health Service (PHS) in the U.S. for PROSTVAC, CV301 and BN-Brachyury, respec-tively. The agreements include contingent liabilities for the Group to pay performance-based royalties, if and when certain milestone events are achieved. Further, the agreements include potential contingent liabilities
for the Group to pay additional sublicensing royalties on the fair market value of consideration received, if and when the Group grants such sublicenses. Payments considered remote are not included in the amounts above.
Company mortgage
The Company has by letter of indemnity granted Nordea a floating charge on unsecured claims arising from the sale of goods and services and stocks of raw materials, intermediate products and finished products, DKK 150 million (DKK 150 million). The floating charge secures the operating credit line of DKK 20 million and the line for trading in financial instruments, DKK 50 million (DKK 50 million).
Lawsuits
Based on management's assessment the Group is not involved in any lawsuits or arbitration cases which could have a material impact on the Group's financial position or results of operations.
DKK thousand | 2025 | 2024 |
Collaborative agreements | ||
Contractual obligations with research (CRO) and manufacturing (CMO) partners. | ||
- Due within 1 year | 118,368 | 139,183 |
Note 31
Related party transactions
The Group Management and Board of Directors of Bavarian Nordic A/S are considered related parties.
Besides the remuneration of the Board of Directors and the Executive Management, cf. note 8, and the share-based payments, cf. note 29, there are no transactions with related parties.
Transactions with subsidiaries are eliminated in the consolidated financial statements, in accordance with the accounting policies.
Note 32
Significant events after the balance sheet date
On January 7, 2026, the Company announced the launch of the first tranche of a planned share buy-back program for up to DKK 500 million during 2026. The first tranche comprised buy-back of shares for up to DKK 150 million and was completed on February 9, 2026, after buy-back of 764,558 shares for a total value of DKK 150 million. The shares will be held as treasury stock for the purpose of adjusting the capital structure.
On January 23, 2026, the Company announced an agreement with Eurofarma, granting them exclusive rights to sell and distribute Bavarian Nordic\u2019s chikun-gunya vaccine in Brazil. Eurofarma was also granted the right of first refusal for any future opportunity to register and commercialize the chikungunya vaccine in the rest of Latin America.
On February 18, 2026, the Company announced a new order valued at USD 22.5 million from the Public Health Agency of Canada (PHAC) for the Company\u2019s mpox and smallpox vaccine.
On March 2, 2026, the Company announced that the Board of Directors had entered into an agreement
with CEO, Paul Chaplin, who wishes to step down for personal reasons. Paul Chaplin will continue in his role for the remainder of 2026, or until a successor has been identified. The Board of Directors has initiated the process to identify a new CEO.
On March 11, 2026, the Company announced an expansion of the strategic partnership with Serum Institute of India to include a contract manufacturing agreement covering a full tech transfer of the manu-facturing process for the chikungunya vaccine from Bavarian Nordic to SII to allow for scaling of capacity to enable future supply to endemic low- and middle-in-come countries. This replaces the agreement previously entered with Biological E. Limited.
Except as noted above, there have been no significant events between December 31, 2025, and the date of approval of these financial statements that would require a change to or additional disclosure in the financial statements.
Note 33
Approval of the consolidated financial statements
The consolidated financial statements were approved by the Board of Directors and Corporate Management and authorized for issue on March 12, 2026.