Kvistgård, Denmark, January 27, 2010 - Bavarian Nordic A/S (OMX: BAVA) announced
today that Bavarian Nordic and Oxford BioMedica have reached a global settlement
ending the legal disputes between the parties on matters relating to Modified
Vaccinia Ankara (MVA-BN®).

Under the agreement, Bavarian Nordic will grant a license to its MVA-BN® patents
in return for Oxford BioMedica making milestone payments and royalties. As a
part of the agreement Oxford BioMedica will grant Bavarian Nordic a license to
its heterologous prime-boost patents in return for Bavarian Nordic making
milestone payments and royalties and a sub-license under poxvirus patents
licensed to Oxford BioMedica by sanofi aventis.

Under the settlement, the terms of which are confidential, all pending
litigation will cease and all oppositions filed at the European Patent Office by
Oxford BioMedica will be withdrawn. In addition both companies have agreed to
initiate business discussions concerning a possible future collaboration based
on each company's expertise in poxvirus vaccines and Bavarian Nordic's
commercial manufacturing capability.

The agreement will have no impact on the company's financial guidance for 2009
and 2010.

In a joint statement, John Dawson CEO of Oxford BioMedica and Anders Hedegaard
CEO of Bavarian Nordic commented: "This settlement brings to an end the legal
disputes between the two companies and provides a basis for both companies to
progress their respective vaccine businesses."


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

Not for release, publication or distribution, directly or indirectly in or into
Australia, Canada, Japan or the United States
This announcement does not constitute or form part of an offer to sell or the
solicitation of an offer to buy the securities of Bavarian Nordic A/S (the
"Securities") in Australia, Canada, Japan or the United States or in any other
jurisdiction. The Securities may not be offered or sold in the United States
absent registration or an exemption from registration under the U.S. Securities
Act of 1933, as amended. The issuer of the Securities has not registered, and
does not intend to register, any portion of the Offering in the United States or
in any jurisdiction outside Denmark and the United Kingdom, and does not intend
to conduct a public offering of the Securities in the United States or in any
jurisdiction outside Denmark and the United Kingdom. Copies of this announcement
are not being made and may not be distributed or sent into Australia, Canada,
Japan or the United States.

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.

About Bavarian Nordic
Bavarian Nordic A/S 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 pipeline is focused in
the three areas; biodefence, cancer and infectious diseases, and includes seven
development programmes. Two programmes are under preparation for Phase III:
IMVAMUNE®, a third-generation smallpox vaccine is being developed under a
contract with the US government, and PROSTVAC(TM), a therapeutic vaccine for
advanced prostate cancer is being developed under a collaboration agreement with
the National Cancer Institute.

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

For more information please visit www.bavarian-nordic.com
<http://www.bavarian-nordic.com/>





[HUG#1377460]





    2010-08-uk: http://hugin.info/100065/R/1377460/338380.pdf