Bavarian Nordic Enters Into New Research Project to Develop New Cancer Vaccines Supported by the Danish National Advanced Technology Foundation

Kvistgård, Denmark, March 3, 2011 - Bavarian Nordic A/S (OMX: BAVA) announced
today that the Company will participate in a new Danish research project,
established with the purpose of identifying pathogens (viruses and bacteria)
that may cause cancer. The identification of such viruses is an important step
towards the development of cancer vaccines. Bavarian Nordic has been elected as
partner in this project and will obtain the exclusive rights to commercialize
any cancer vaccines that may emerge from the project. Until any viruses, leading
to the development of new vaccines is identified; the project carries minimal
costs for Bavarian Nordic.

The research project is part of a larger project, which today received a large
grant of almost DKK 90 million from the Danish National Advanced Technology
Foundation. With Bavarian Nordic as collaborative partner, the project is being
headed by some of the most reputable scientists from Danish universities,
including Eske Willerslev, Professor, Doctor of Science and Head of Centre for
GeoGenetics at University of Copenhagen and Lars P. Nielsen, M.D., adjunct
professor and infectious diseases specialist at Statens Serum Institut.

Background of the project
Cancer is the cause of 7.4 million deaths worldwide every year, thus
representing 13 % of all deaths. In general, the causes of cancer remain
unknown, but certain cases can be attributed to viruses, as is the case with
cervical cancer, for which an effective vaccine that protects most of the
vaccinees has already been developed.

Through the project, the researchers hope to identify yet unknown pathogens,
causing other types of cancer, where an estimated 15% of all cases are
attributed to pathogens. This could pave the way for the development of new
cancer vaccines.

So far it has been difficult to detect new pathogens, but using new and advanced
sequencing technology to characterise and classify the DNA, the researchers will
look for yet unknown fragments of DNA, which could lead to the identification of
new pathogens related to cancer. The researchers are already well-experienced
with this technology and have identified unknown viruses in DNA from patients in
other diseases.

The project will concentrate its efforts on the major cancers such as breast,
prostate and colon cancer and leukaemia, in order to investigate how DNA from
these patients differ from the DNA of healthy people.

Anders Hedegaard, President & CEO of Bavarian Nordic said: "This project is
tailored to our business, which is highly specialized in research, development
and manufacturing of advanced vaccines. It is obvious that vaccines are the
future in cancer treatment and we have already come far in the development of a
vaccine for the treatment of advanced prostate cancer; PROSTVAC®. We see great
potential in participating in this project on the development of new vaccines
that in whole or in part could reduce the incidence of cancer."


Asger Aamund
Chairman of the Board


Contact
Anders Hedegaard, President & CEO. Phone +45 23 20 30 64

About Bavarian Nordic
Bavarian Nordic is a leading industrial biotechnology company developing and
producing novel vaccines for the treatment and prevention of life-threatening
diseases with a large unmet medical need. The company's clinical pipeline
targets cancer and infectious diseases, and includes seven development
programmes. Two programmes under preparation for Phase III: PROSTVAC(®), a
therapeutic vaccine for advanced prostate cancer is being developed under a
collaboration agreement with the National Cancer Institute, and IMVAMUNE(®), a
third-generation smallpox vaccine is being developed under a contract with the
US government.

Bavarian Nordic is listed on NASDAQ OMX Copenhagen under the symbol BAVA.

For more information please visit www.bavarian-nordic.com

PROSTVAC(®) is a registered trademark in the U.S.

Forward-looking statements
This announcement includes "forward-looking statements" that involve risks,
uncertainties and other factors, many of which are outside of our control that
could cause actual results to differ materially from the results discussed in
the forward-looking statements. Forward-looking statements include statements
concerning our plans, objectives, goals, future events, performance and/or other
information that is not historical information. We undertake no obligation to
publicly update or revise forward-looking statements to reflect subsequent
events or circumstances after the date made, except as required by law.

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