BAVARIAN NORDIC A/S: YET ANOTHER COVID-19 VACCINE
CASE STUDY SOLUTION
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pl
SYNOPSIS
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In August 2021, the Danish government announced that it would provide DKK 800 million2 (about US$115
Sa
million)3 to support the development of a COVID-19 vaccine candidate by the biopharmaceutical company
Bavarian Nordic A/S (Bavarian Nordic) as part of an effort to build vaccine production capacity in Denmark
and reduce the country’s dependence on vaccines from abroad. The COVID-19 vaccines used up to that point
in Denmark had been produced by BioNTech/Pfizer and Moderna. Bavarian Nordic proposed creating a
Danish alternative that could potentially provide longer-lasting protection using technology (licensed from
n
another Danish company) different from the mRNA technology used by BioNTech/Pfizer and Moderna.
tio
However, Bavarian Nordic was a latecomer to the COVID-19 vaccine market, and there were indications
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So
The Case Solution Starts From page 4
,ASSIGNMENT QUESTIONS
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pl
1. Should Bavarian Nordic continue to invest in its own COVID-19 vaccine?
2. What factors need to be considered to make this decision—both at the time of the case and as the project
progresses and new data and circumstances emerge?
m
3. If the clinical trials were successful and the vaccine received clearance from the health authorities, how
should Bavarian Nordic position the vaccine on the global market?
Sa
4. Suppose the clinical trials show that the Bavarian Nordic vaccine is superior to existing mRNA vaccines
in terms of product performance (efficacy, safety, etc.)—does that necessarily mean it will prevail in
the marketplace?
5. What other options might exist for Bavarian Nordic—apart from its current approach—to continue
n
developing its vaccine?
tio
lu
So
ANALYSIS
Question 1
Should Bavarian Nordic continue to invest in its own COVID-19 vaccine project?
contribute arguments for and against, listing their arguments on the board. This question
should elicit answers along the lines of those in the table below.
The Case Solution Starts From page 4
, Page 4 W36781
For Against
This vaccine may be better than existing ones; theThe world has the COVID vaccines it needs; they
current vaccines’ efficacy wears off too quickly have averted the pandemic, demand is met
Need a solution to vaccine nationalism Will be costly, perhaps too costly in competition
with pharma giants and much larger (richer)
countries
Learn how to use this new technology, which might Regulatory process will be tougher (non-
be useful beyond COVID vaccines emergency approval)
Too early in the innovation cycle to lock into a No guarantee that it will be better (or safe)
single technology
Historical pattern of small companies disrupting Production infrastructure might not be available for
larger, richer ones piloting
Funding might not be available to finish and
market the drug
e
pl
m
Sa
n
tio
lu
So
The Case Solution Starts From page 4
CASE STUDY SOLUTION
e
pl
SYNOPSIS
m
In August 2021, the Danish government announced that it would provide DKK 800 million2 (about US$115
Sa
million)3 to support the development of a COVID-19 vaccine candidate by the biopharmaceutical company
Bavarian Nordic A/S (Bavarian Nordic) as part of an effort to build vaccine production capacity in Denmark
and reduce the country’s dependence on vaccines from abroad. The COVID-19 vaccines used up to that point
in Denmark had been produced by BioNTech/Pfizer and Moderna. Bavarian Nordic proposed creating a
Danish alternative that could potentially provide longer-lasting protection using technology (licensed from
n
another Danish company) different from the mRNA technology used by BioNTech/Pfizer and Moderna.
tio
However, Bavarian Nordic was a latecomer to the COVID-19 vaccine market, and there were indications
lu
So
The Case Solution Starts From page 4
,ASSIGNMENT QUESTIONS
e
pl
1. Should Bavarian Nordic continue to invest in its own COVID-19 vaccine?
2. What factors need to be considered to make this decision—both at the time of the case and as the project
progresses and new data and circumstances emerge?
m
3. If the clinical trials were successful and the vaccine received clearance from the health authorities, how
should Bavarian Nordic position the vaccine on the global market?
Sa
4. Suppose the clinical trials show that the Bavarian Nordic vaccine is superior to existing mRNA vaccines
in terms of product performance (efficacy, safety, etc.)—does that necessarily mean it will prevail in
the marketplace?
5. What other options might exist for Bavarian Nordic—apart from its current approach—to continue
n
developing its vaccine?
tio
lu
So
ANALYSIS
Question 1
Should Bavarian Nordic continue to invest in its own COVID-19 vaccine project?
contribute arguments for and against, listing their arguments on the board. This question
should elicit answers along the lines of those in the table below.
The Case Solution Starts From page 4
, Page 4 W36781
For Against
This vaccine may be better than existing ones; theThe world has the COVID vaccines it needs; they
current vaccines’ efficacy wears off too quickly have averted the pandemic, demand is met
Need a solution to vaccine nationalism Will be costly, perhaps too costly in competition
with pharma giants and much larger (richer)
countries
Learn how to use this new technology, which might Regulatory process will be tougher (non-
be useful beyond COVID vaccines emergency approval)
Too early in the innovation cycle to lock into a No guarantee that it will be better (or safe)
single technology
Historical pattern of small companies disrupting Production infrastructure might not be available for
larger, richer ones piloting
Funding might not be available to finish and
market the drug
e
pl
m
Sa
n
tio
lu
So
The Case Solution Starts From page 4
