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On Monday, H.C. Wainwright reaffirmed a Buy rating and a $14.00 price target on Evaxion Biotech (NASDAQ:EVAX), following the company’s recent successful public offering. The stock currently trades at $2.45, down nearly 89% over the past year according to InvestingPro data. Evaxion Biotech completed the offering on January 31, issuing 3,997,361 American Depositary Shares (ADSs) and accompanying warrants to purchase up to 1,998,675 ADSs at a price of $2.71 per ADS. This move raised approximately $10.8 million in gross proceeds before expenses.
Merck (NSE:PROR), an existing shareholder and collaborator of Evaxion, also participated in the offering, increasing its stake in the biotech company to nearly 20% from around 7%. H.C. Wainwright analysts view Merck’s increased investment as an endorsement of Evaxion’s AI-driven models and the company’s commercial potential.
In addition to the public offering, Evaxion has secured $7.9 million through the exercise of warrants and an at-the-market facility since the end of the third quarter of 2024. The combined financial activities have provided Evaxion with a pro forma cash balance of $22 million, which is expected to fund operations into mid-2026. InvestingPro data reveals the company is quickly burning through cash, with negative free cash flow of $15.45 million in the last twelve months. Get access to 15+ additional ProTips and comprehensive financial analysis with InvestingPro.
Evaxion is also anticipated to receive up to $10 million in 2025, contingent upon Merck exercising its option to in-license one or both of Evaxion’s preclinical candidates, EVX-B2 and EVX-B3. Should this occur, it is projected that Evaxion’s financial runway could extend to at least the end of 2026.
The company plans to allocate the raised funds towards the development of its pipeline and business development endeavors. With the financial uncertainties now addressed, Evaxion is poised to progress its pipeline and is slated to achieve several significant milestones in 2025. These milestones include the release of two-year efficacy data for its neoantigen cancer vaccine EVX-01, the selection of a lead candidate for its ERV vaccine, and the announcement of two new infectious disease vaccine candidates. H.C. Wainwright’s analysts have reiterated their Buy rating and price target of $14 per ADS, signaling confidence in Evaxion’s future prospects. Analyst targets for the stock range from $19.75 to $70, with a consensus recommendation of 1.5, indicating a strong buy signal.
In other recent news, Evaxion Biotech A/S has achieved preclinical success with its AI cancer vaccine, designed using its proprietary AI-Immunology™ platform. The company also announced plans to select a lead ERV precision vaccine candidate in the second half of 2025. On the financial front, Evaxion is facing a delisting determination from Nasdaq due to non-compliance with equity standards, but is seeking a 180-day extension to regain compliance.
The company has also entered into a licensing agreement with Merck for the development of two preclinical vaccine candidates, EVX-B2 and EVX-B3, which could bring in up to $1.2 billion in milestone payments. Analyst firm H.C. Wainwright has maintained a Buy rating for Evaxion following these developments.
Evaxion anticipates generating $14 million in business development income, and its current cash reserves are expected to fund operations until early 2025. The company has also appointed Mads Kronborg as the new VP of Investor Relations and Communication, indicating a focus on multi-partner collaborations and key milestones. These are the recent developments in the company’s ongoing operations.
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