Bavarian Nordic’s shares surged by 21 percent on Thursday following reports that a consortium of private equity funds, Nordic Capital and Permira, is considering acquiring the vaccine manufacturer. The company, listed on the Copenhagen Stock Exchange, confirmed it is in discussions with the firms regarding a potential takeover, but cautioned that there is no guarantee a bid or agreement will be reached.

The interest from Nordic Capital and Permira comes amid a surge in private equity activity in European markets, driven by the belief that companies are undervalued relative to their potential earnings. Bloomberg estimates the market value of Bavarian Nordic at around $2.5 billion (almost DKK 16 billion).

Bavarian Nordic specializes in developing travel vaccines and collaborates with governments and organizations to supply vaccines against diseases like ticks and smallpox. The company experienced significant growth in its travel health business during the first quarter of the year, fueled by high demand for rabies and tick-borne encephalitis vaccines. The first US sale of the chikungunya vaccine also contributed to the company’s success.

The company’s revenue in the first three months of the year grew by 62 percent compared to the same period in 2024, with a turnover of DKK 1,347 million. Analysts had anticipated lower revenues.

While the USA and Canada account for almost 56 percent of Bavarian Nordic’s revenue in 2024, concerns have been raised about potential challenges due to skepticism towards vaccines expressed by US Secretary of Health Robert F. Kennedy Jr. This skepticism has led to the withdrawal of long-standing recommendations on Covid-19 vaccinations for children and pregnant women and the removal of a mercury-based preservative from flu vaccinations.

Permira has declined to comment on the matter, and Nordic Capital could not be immediately reached for comment.