Kromann Reumert assists Bavarian Nordic in entering into an agreement on DKK 800 million State aid for the development of a Danish COVID-19 vaccine

According to the State aid agreement, the Danish State will pay State aid up to DKK 800 million on the condition that Bavarian Nordic achieves certain milestones, including finalisation of the ongoing clinical phase II trials, completion of clinical phase III trials, and upscaling of the commercial production of the vaccine.

The State aid amount will potentially have to be repaid to the Danish State subject to successful development of the vaccine and achievement of marketing authorisation. In that case, such repayment will be in the form of vaccine supplies and possibly royalty payments to the State. In addition, depending on the commercial success of the vaccine, the State may obtain a gain in the form of an additional, capped royalty payment.

The European Commission has approved the State aid, but the agreement is still subject to final approval by the Finance Committee of the Danish Parliament.

Kromann Reumert has assisted Bavarian Nordic in negotiating the terms of the State aid and the supply of vaccines to the Danish State, and has advised on the State aid aspects of the agreement.

Read more: Bavarian Nordic receives funding from the Danish Ministry of Health to advance the development of a COVID-19 booster vaccine (bavarian-nordic.com) and State aid for the development of a Danish COVID-19 vaccine (sum.dk)