Bavarian Nordic Obtains Rights to New Cancer Vaccine Product Candidates

Includes rights to immunotherapy product candidate for multiple cancer
indications; data from ongoing NCI-sponsored Phase 2 study in breast cancer
expected in first half of 2012.

Kvistgård, Denmark, October 5, 2011 - Bavarian Nordic A/S (OMX: BAVA) today
announced that its BN ImmunoTherapeutics subsidiary has entered into an expanded
strategic partnership with the National Cancer Institute (NCI). Under the
licensing and Cooperative Research and Development Agreements (CRADA), the NCI
and Bavarian Nordic will jointly develop new off-the-shelf product candidates
for the treatment of multiple cancers and a new technology platform based on
NCI's cancer vaccine technology.

Through the expanded collaboration with the NCI and license with the National
Institutes of Health (NIH), the Company has obtained certain rights to CVAC-301
(formerly developed as PANVAC), an off-the-shelf, cancer immunotherapy product
candidate. CVAC-301 originates from the same poxvirus technology platform as
PROSTVAC®, the Company's lead product candidate licensed from the NIH in 2008
and also being developed in collaboration with NCI under a CRADA.

"This agreement marks a major step forward for Bavarian Nordic as the product
candidate and technology platform significantly expand our cancer vaccine
portfolio and enhances our position as a leader in recombinant immunotherapies
for the treatment and prevention of life-threatening diseases," said Reiner
Laus, President of the Cancer Vaccine Division. "As already shown with PROSTVAC®
in prostate cancer and CVAC-301 in other cancer indications, this technology
platform holds great promise in the future treatment of patients with several
types of cancers who today face a limited number of treatment alternatives.
Also, we are strengthening our ties with the National Cancer Institute - a world
leader in cancer research, and we look forward to collaborating with the
experienced staff at NCI on the development of new cancer vaccines for the
benefit of even more cancer patients."

While PROSTVAC® incorporates a single antigen overexpressed in prostate cancer
(PSA), CVAC-301 incorporates two antigens (CEA and MUC-1) that are overexpressed
in other major cancers, including breast, lung, and ovarian, which makes CVAC-
301 potentially applicable in various cancers. CVAC-301 is currently the subject
of an NCI-sponsored, randomized Phase 2 study of docetaxel alone or in
combination with CVAC-301 in metastatic breast cancer with data expected in the
first half of 2012.

Under the agreement the Company will manufacture additional vaccine constructs
for the NCI. As part of this collaborative effort, NCI will fund and conduct
certain preclinical and clinical studies to evaluate the product candidates
alone and in combination with other modalities. The funding can include Phase 3
studies.

The licensing cost of CVAC-301 does not affect the company's expectations for
the financial results for 2011. In addition, due to CVAC-301's advanced stage of
development and broader applicability beyond HER2+ breast cancer, the company
expects to reassess earlier-stage pipeline programs, such as MVA-BN® HER2,
following the completion of ongoing studies.

About Poxviruses and Immunotherapy
Although increased expression of tumor associated antigens, such as PSA, CEA,
and MUC-1, is associated with advanced disease these antigens do not
sufficiently activate the immune system to attack cancer cells. To overcome this
poor responsiveness, recombinant poxvirus vectors, including vaccinia, fowlpox
and modified vaccinia Ankara (MVA), can be genetically engineered to express one
or more tumor-associated antigens to greatly enhance the immune system's ability
to recognize and destroy cancer cells bearing any of the targeted antigens.

About CVAC-301 and PROSTVAC®
Both PROSTVAC® and CVAC-301 are prime-boost vaccines, sequentially combining two
different poxviruses (vaccinia and fowlpox). Collectively, these two product
candidates have been the subject of over 30 clinical trials in more than 1,000
patients with prostate, breast, lung, colorectal, gastric, pancreatic, ovarian,
and other cancers. These extensive clinical studies suggest a favorable safety
and tolerability profile for poxvirus-based vaccines along with immunologic
responses directed against the relevant tumor-associated antigens.

Further information and a list of scientific publications on CVAC-301 can be
found on the Company's website: http://www.bavarian-nordic.com/cvac-301

Conference call
A conference call will be held today, 5 October 2011 at 6 p.m. CET (12 p.m. EST)
with Anders Hedegaard, President & CEO, Reiner Laus, CEO of BN
ImmunoTherapeutics Inc. and Rolf Sass Sørensen, Vice President Investor
Relations & Communications. The conference call will begin with a presentation
of CVAC-301 and the expanded NCI collaboration, followed by a Q&A session. Dial-
in numbers for the conference call are: UK: +44 (0)20 7162 0077. USA:
+1 334 323 6201. The accompanying presentation is available on the company's
website:http://www.bavarian-nordic.com/cvac-301.


Asger Aamund
Chairman of the Board


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


About Bavarian Nordic
Bavarian Nordic is a leader in the development and production of 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 are under
preparation for Phase III: PROSTVAC®, a treatment for advanced prostate cancer
that 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.


About the NCI
The National Cancer Institute (NCI) is part of the National Institutes of Health
(NIH) and is the United States federal government's leading cancer research
organization. NCI has played an active role in the development of drugs for
cancer treatment for over 50 years. This is reflected in the fact that
approximately one half of the chemotherapeutic drugs currently used by
oncologists for cancer treatment were discovered and/or developed at NCI. The
organisation has supported the research efforts of at least 20 Nobel Prize
winners. For approximately half of these Nobel laureates, NCI supported the
awarded research.


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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