Bavarian Nordic introduces incentive program and issues warrants

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| Source: Bavarian Nordic A/S
KVISTGAARD, Denmark, December 13, 2013 - Bavarian Nordic A/S (OMX: BAVA)
announced today that the Company, in accordance with a board decision of today,
introduces a three year incentive program in January 2014 for all employees in
the Bavarian Nordic Group. The program is a cash bonus program based on so-
called phantom shares (bonus program based on the Company's share price). This
means that each employee in the program will be entitled to exercise a number of
phantom shares when the program expires in 2017 and, thus, receive a cash bonus
calculated from the increase in the Company's share price. The incentive program
will not have a dilutive effect on the shareholders.

With effect from 1 January 2014 every month each employee is awarded up to six
phantom shares per month of employment until 31 December 2016 and can during the
term of the program receive a maximum of 216 phantom shares. Awards will
terminate if the employment is terminated. New employees will participate in the
program after 3 months employment. The exercise price is DKK 96.5 and has been
established as the average share price ("closing price") for the Company's share
in a period of 15 business days prior to today added a 15 % premium. At the time
of exercise each employee in the program will receive a cash bonus per phantom
share equivalent to DKK 1 per share point the share price of the Company's
shares exceeds the exercise price. The cash bonus is subject to taxation.

The phantom shares may be exercised from 16 January 2017 to 29 January 2017
(both dates inclusive). Exercise of phantom shares is subject to the price of
the Company's shares exceeding the exercise price by at least 10 % at the time
of exercise in 2017.

Based on the current number of employees in the Group, this 3 year incentive
program will comprise up to 94,608 phantom shares, of which the President & CEO
will receive up to 216 phantom shares and other members of executive management
will receive up to a total of 648 phantom shares. The average present value of
each phantom share equals DKK 9.3 calculated on the basis of the Black-Scholes
model with a risk-free interest rate of 0.74 per cent and on the historical
volatility of the shares. The calculation is based on a market value of the
share of DKK 82 per share.

Furthermore, the Board of Directors in Bavarian Nordic A/S has today decided to
award warrants to certain new employees in the Bavarian Nordic Group. The Board
decision is made in accordance with the shareholder authorization for the Board
of Directors adopted as Article 5b of the Articles of Association and the
Company's guidelines regarding incentive programs. The award is made by the
Board of Directors and exercise is limited by and governed by the Danish Act on
Options for Employees (the Stock Option Act/aktieoptionsloven) regarding
termination of employment prior to exercise of warrants.

A total of 70,000 warrants are awarded for subscription of up to 70,000 shares
of a nominal value of DKK 10 each at an exercise price of DKK 96.5 per share.
The exercise price is established as the average share price ("closing price")
for the Company's share in a period of 15 business days prior to this day added
a 15 % premium. 24.550 of the issued warrants are reissued in accordance with
Article 5b and Articles 5n, 5o, 5p and 5r of the Articles of Association.

The warrants can be exercised wholly or partly in a period of 14 days commencing
from the day of publication of the Company's annual report for 2016, from the
day of publication of the Company's half-year report for 2017, from the day of
publication of the Company's annual report for 2017 and/or in a period of 14
days commencing from the day of publication of the Company's half-year report
for 2018.

The value of each warrant equals DKK 16.6 and is calculated on the Black-Scholes
model with a risk-free interest rate of 0.74 per cent and on the historical
volatility of the shares. The calculation is based on a market value of the
share of DKK 82 per share.

The award of warrants will incur consequential amendments to the Articles of
Association.


Asger Aamund
Chairman of the Board

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

About Bavarian Nordic
Bavarian Nordic is an international biotechnology company developing and
manufacturing novel cancer immunotherapies and vaccines for infectious diseases.
Lead product candidates are PROSTVAC®, an immunotherapy product candidate for
advanced prostate cancer that is the subject of an ongoing pivotal Phase 3
clinical trial and IMVAMUNE®, a non-replicating smallpox vaccine candidate in
Phase 3 development, which is being developed and supplied for emergency use to
the U.S. Strategic National Stockpile under a contract with the U.S. Government.
IMVAMUNE is approved in the European Union under the trade name IMVANEX®.

Bavarian Nordic's shares are listed on NASDAQ OMX Copenhagen under the symbol
BAVA (Reuters: BAVA.CO, Bloomberg: BAVA.DC). The company has a sponsored Level
1 ADR program listed in the US (OTC) under the symbol BVNRY.

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

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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