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COPENHAGEN - Evaxion A/S (NASDAQ:EVAX) announced Thursday that MSD (tradename of Merck & Co., Inc.) has exercised its option to license Evaxion’s preclinical vaccine candidate EVX-B3 for a cash payment of $7.5 million.
Under the agreement, MSD will assume full responsibility for the further development of EVX-B3, with Evaxion eligible to receive up to $592 million in development, regulatory and sales milestone payments, plus royalties on sales.
The EVX-B3 vaccine candidate, discovered using Evaxion’s AI-Immunology platform, targets a pathogen associated with repeated infections and serious medical complications for which no vaccines are currently available.
"This has significant financial value for us, but equally important is the massive validation of our AI-Immunology platform by MSD," said Birgitte Rønø, CSO and interim CEO of Evaxion.
Tarit Mukhopadhyay, Vice President, Head of Infectious Diseases and Vaccine Discovery at MSD Research Laboratories, stated, "With its AI-Immunology platform, Evaxion has identified novel protective vaccine targets for a pathogen long considered difficult to address."
The cash payment extends Evaxion’s runway into the first half of 2027, according to the company. InvestingPro analysis shows the company maintains strong liquidity with a current ratio of 3.42, indicating sufficient assets to cover short-term obligations. For deeper insights into Evaxion’s financial health and growth potential, investors can access the comprehensive Pro Research Report, available exclusively on InvestingPro.
Additionally, Evaxion and MSD have agreed to extend the evaluation period for a second vaccine candidate, EVX-B2, which targets Gonorrhea. A decision on potential licensing of EVX-B2 is expected in the first half of 2026. Should MSD exercise this option, Evaxion will receive an additional $2.5 million payment with similar milestone and royalty structures.
The announcement was made in a press release issued by Evaxion.
In other recent news, Evaxion Biotech reported its Q2 2025 earnings, emphasizing strategic developments and financial movements. The company highlighted its cash position and operational updates during the earnings call. Despite a decrease in stock price, Evaxion Biotech pointed out its extended cash runway, which is crucial for its ongoing operations. The company also detailed advancements in its research and development pipeline, signaling continued progress in its vaccine development efforts. These updates provide investors with insights into the company’s financial health and strategic direction. The recent earnings report did not include specific revenue or earnings figures, but the focus on cash and R&D suggests a forward-looking approach. The company continues to navigate its financial landscape with an emphasis on innovation and strategic growth.
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