COPENHAGEN - Evaxion Biotech A/S (NASDAQ: EVAX), a clinical-stage biotechnology company with a market capitalization of just under $7 million, has announced preclinical Proof-of-Concept (PoC) for its novel precision cancer vaccine designed using its proprietary AI-Immunology™ platform. According to InvestingPro data, the company's stock has experienced significant volatility this year, trading 90% below its 52-week high of $13.61. The vaccine targets non-conventional endogenous retrovirus (ERV) tumor antigens that are common across patients, potentially broadening the applicability of cancer vaccines.
The recent findings, presented at the ESMO Immuno-Oncology Congress in Geneva, Switzerland, demonstrated that the AI-Immunology™ platform could effectively identify potent ERV antigenic hotspots. These hotspots are fragments of ERVs that, when matched with a diverse range of immune system profiles, could lead to the development of vaccines effective for a wider patient population. While the company maintains a strong cash position relative to its debt, InvestingPro analysis indicates the company is quickly burning through its cash reserves.
During the preclinical studies, human immune cells from multiple donors responded to stimulation with ERV precision vaccine targets, inducing ERV-specific T-cell responses. Additionally, mouse models treated with the AI-designed ERV precision vaccines showed functional antigen-specific T-cells and a subsequent inhibition of tumor growth.
Christian Kanstrup, CEO of Evaxion, expressed excitement over the achievement of another company milestone with the preclinical PoC. He highlighted the potential of ERVs as therapeutic targets and the role of AI-Immunology™ in designing precision vaccines that could lead to improved treatment options for cancer patients.
Evaxion plans to continue development with the aim of selecting a lead ERV precision vaccine candidate in the second half of 2025. ERVs, which are remnants of ancient viruses embedded in the human genome, are typically overexpressed in cancer cells but not in healthy tissue, making them ideal targets for cancer vaccines.
Evaxion's AI-Immunology™ platform is central to the company's approach, as it decodes the human immune system and identifies relevant ERV tumor antigens from genomic tumor data of patients. This technology has enabled the development of a clinical-stage oncology pipeline of personalized vaccines and a preclinical infectious disease pipeline for diseases with high unmet medical needs.
This article is based on a press release statement from Evaxion Biotech A/S. The company's forward-looking statements involve risks and uncertainties that could cause actual results to differ materially from those projected. Despite current challenges, analysts are projecting revenue growth of over 65% for the coming year, according to InvestingPro, which offers comprehensive analysis and 8 additional key insights about EVAX's financial health and market position in its Pro Research Report.
In other recent news, Evaxion Biotech is appealing a delisting determination from Nasdaq for not meeting the required shareholder equity. The company is actively seeking a 180-day extension to comply with the equity standards. In parallel, Evaxion has made significant strides in its vaccine development, with its AI-Immunology™ platform demonstrating improved predictive capabilities. The company has also entered a licensing agreement with pharmaceutical giant Merck (NS:PROR) 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. H.C. Wainwright has maintained a Buy rating for Evaxion following these developments. Evaxion Biotech expects to generate $14 million in business development income, and current cash reserves are anticipated to fund operations until early 2025. Finally, the company has introduced Mads Kronborg as the new VP of Investor Relations and Communication, indicating an emphasis on multi-partner collaborations and key milestones. These are recent developments in the company's ongoing operations.
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