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In a turbulent period for biotech firms, Evaxion Biotech AS (EVAX) has seen its stock price plummet to $2.38, though InvestingPro analysis suggests the stock may be undervalued. According to InvestingPro data, analysts have set price targets ranging from $19.75 to $70. The Danish immunotherapy company, which specializes in the discovery and development of vaccines for infectious diseases and cancer, has faced significant market headwinds, reflected in a staggering 1-year change of -87.18%. While the company maintains a strong cash position relative to debt, InvestingPro data indicates rapid cash burn and projects 49.75% revenue growth for FY2024. This sharp decline underscores investor concerns over the company’s pipeline progress and the broader biotech sector’s volatility. As Evaxion continues to navigate the complex landscape of drug development and seeks to regain its footing, stakeholders are closely monitoring its strategies for recovery and growth. InvestingPro subscribers have access to 12 additional key insights about EVAX and a comprehensive Pro Research Report that provides deep-dive analysis of the company’s financial health and growth prospects.
In other recent news, Evaxion Biotech has reported preclinical success for its AI cancer vaccine, developed using its AI-Immunology™ platform. The vaccine targets endogenous retrovirus (ERV) tumor antigens, potentially expanding the applicability of cancer vaccines. During the preclinical studies, both human immune cells and mouse models responded positively to the ERV precision vaccine, demonstrating potential for tumor growth inhibition.
Evaxion also faces a potential delisting from Nasdaq due to not meeting the required shareholder equity, but is actively seeking a 180-day extension to comply with the equity standards. In response to this, H.C. Wainwright has maintained a Buy rating for the company.
The company has made significant progress in its vaccine development, entering a licensing agreement with Merck (NSE:PROR) for the development of two preclinical vaccine candidates, EVX-B2 and EVX-B3. This could potentially result in up to $1.2 billion in milestone payments.
In terms of revenue, analysts project a growth of over 65% for the coming year. The company expects to generate $14 million in business development income, with current cash reserves anticipated to fund operations until early 2025. These are recent developments in Evaxion Biotech’s ongoing operations.
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