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COPENHAGEN - Biotech company Evaxion A/S (NASDAQ:EVAX), currently valued at $15.5 million and showing strong momentum with a 13% gain last week, announced on Wednesday it has initiated development of a preventive vaccine against Group A Streptococcus (GAS), a bacterial infection that causes hundreds of millions of cases globally each year.
The new vaccine program, named EVX-B4, has been added to the company’s research and development pipeline. According to the company, initial computational analysis showed that its AI-Immunology platform identified novel vaccine targets against GAS, which can cause conditions ranging from strep throat to life-threatening diseases like rheumatic heart disease and necrotizing fasciitis. InvestingPro data shows the company maintains a strong balance sheet with more cash than debt, supporting its research initiatives.
"We prioritized GAS as a key target where our AI-Immunology platform could provide substantial benefit," said Birgitte Rønø, Chief Scientific Officer of Evaxion, in a press release statement.
The World Health Organization estimates over 600 million cases of GAS-related pharyngitis occur annually worldwide, with approximately 470,000 new cases of acute rheumatic fever each year. In the United States alone, an estimated 20,000 to 27,000 invasive GAS cases occur annually, resulting in 1,800 to 2,400 deaths.
With the addition of EVX-B4, Evaxion’s pipeline now includes five vaccine candidates for infectious diseases and three for cancer. The company stated this expansion aligns with its partnership strategy to increase assets available for out-licensing. According to InvestingPro analysis, the stock appears undervalued based on its Fair Value calculation, with analyst price targets ranging from $6 to $19.75 per share. Get access to 10+ additional ProTips and comprehensive analysis with an InvestingPro subscription.
No preventive vaccine currently exists for GAS infections, which can range from mild conditions like strep throat to severe complications including sepsis and toxic shock syndrome.
The announcement represents the achievement of one of Evaxion’s stated milestones for 2025, according to the company’s press release. While analysts don’t expect profitability this year, the company has demonstrated remarkable revenue growth, with a significant increase in the last twelve months.
In other recent news, Evaxion Biotech has made significant strides in its financial and operational endeavors. The company reported advancements in its Phase 2 trial for the EVX-01 cancer vaccine, showcasing an 80% hit-rate for inducing tumor-specific immune responses. Additionally, Evaxion has extended its cash runway to mid-2026, with cash and cash equivalents rising to $17.8 million as of March 31, 2025. This improvement is attributed to successful capital market initiatives and reduced R&D expenses.
Furthermore, Evaxion has secured a grant from the Gates Foundation to develop a novel polio vaccine using its AI-Immunology™ platform, aiming to enhance global polio eradication efforts. On the analyst front, H.C. Wainwright reaffirmed a Buy rating on Evaxion Biotech, maintaining a price target of $14.00, reflecting confidence in the company’s strategic progress. The analyst noted Evaxion’s trajectory towards unveiling a vaccine for an infectious disease by mid-2025 and its ongoing work in the oncology sector.
Evaxion also reported a significant improvement in its Q4 2024 financials, with revenue reaching $3.3 million due to a licensing agreement with MSD, and a reduced net loss compared to the previous year. The company’s collaboration with MSD on the EVX-B2 and EVX-B3 programs continues, with potential option exercises anticipated later in the year. These developments highlight Evaxion’s strategic focus on innovation and financial stability.
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