Evaxion Biotech stock plunges to 52-week low of $1.7 amid steep annual decline

Published 25/03/2025, 14:40
Evaxion Biotech stock plunges to 52-week low of $1.7 amid steep annual decline

In a stark reflection of investor sentiment, Evaxion Biotech AS (EVAX) stock has tumbled to a 52-week low, touching down at $1.7, with the company’s market capitalization shrinking to just $11.15 million. According to InvestingPro analysis, analyst price targets range from $6 to $19.75, suggesting potential upside despite current market pessimism. This latest price level underscores a tumultuous period for the biotechnology firm, which has seen its stock value erode by a staggering 88.31% over the past year. The precipitous drop has alarmed shareholders and market analysts alike, as the company grapples with challenges including rapid cash burn and negative returns on equity. InvestingPro data shows a beta of -0.24, indicating the stock often moves counter to market trends, while analysts project nearly 50% revenue growth for 2024. For deeper insights into EVAX’s financial health and growth prospects, discover 14 additional exclusive ProTips on InvestingPro.

In other recent news, Evaxion Biotech has confirmed its continued listing on the Nasdaq after meeting the exchange’s minimum stockholders’ equity requirement. The company achieved this through a public offering on January 31, 2025, raising $10.8 million, and additional funds from prefunded warrants and American Depositary Shares sales, totaling approximately $7.6 million. This financial boost extends Evaxion’s cash runway to mid-2026, providing stability as it advances its clinical and preclinical pipelines. Furthermore, the expected conversion of part of a loan from the European Investment Bank into equity is projected to add $3.7 million to Evaxion’s equity in the first quarter of 2025.

H.C. Wainwright has maintained a Buy rating for Evaxion, setting a price target of $14 per share, following the successful public offering. Merck (NSE:PROR), a significant shareholder, increased its stake in Evaxion to nearly 20% from around 7%, which analysts view as a positive endorsement of the company’s commercial potential. Evaxion’s pro forma cash balance now stands at $22 million, expected to fund operations into mid-2026. Additionally, the company may receive up to $10 million in 2025 if Merck exercises its option to in-license Evaxion’s preclinical candidates. These developments position Evaxion to achieve significant milestones in 2025, including the release of two-year efficacy data for its cancer vaccine and the announcement of new vaccine candidates.

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