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Highlights

  • MSD exercises option on EVX-B3, with Evaxion receiving $7.5 million upfront.
  • EVX-B3 development costs assumed by MSD; Evaxion eligible for milestone payments up to $592 million.
  • Evaluation period for EVX-B2 extended, with licensing decision expected in H1 2026.

Evaxion A/S (NASDAQ:EVAX), a clinical-stage TechBio company focused on AI-Immunology™ powered vaccines, announced that MSD (Merck & Co., Inc.) has exercised its option to license the vaccine candidate EVX-B3. As part of the agreement, Evaxion receives a $7.5 million cash payment and is eligible for future development, regulatory, and sales milestone payments of up to $592 million, along with royalties on net sales. MSD assumes full responsibility and bears all costs for further development of EVX-B3.

Evaxion is a TechBio company using its AI-Immunology™ platform to develop vaccines and immunotherapies for cancer, bacterial, and viral diseases. The company’s pipeline includes clinical-stage oncology programs and preclinical infectious disease candidates, leveraging AI-driven discovery to target high unmet medical needs.

EVX-B3 and AI-Immunology™ Platform
 EVX-B3, currently in preclinical development, targets a pathogen associated with repeated infections and serious medical complications, for which no vaccines currently exist. The candidate was identified through Evaxion’s AI-Immunology™ platform, which uses artificial intelligence to uncover novel immune targets that traditional methods may not detect.

Birgitte, CSO and interim CEO of Evaxion, commented: "We are delighted that MSD has exercised its option on EVX-B3 following a very successful collaboration. This has significant financial value for us, but equally important is the massive validation of our AI-Immunology™ platform by MSD, the world leader in vaccine development and commercialization. We could not have found a better partner to develop and maximize the full potential for our AI-discovered vaccine candidate. Further, this exemplifies our strategic approach to monetize value through high-impact partnerships."

Cash Runway and EVX-B2 Update
The upfront payment extends Evaxion’s cash runway into the first half of 2027. The evaluation period for a second preclinical vaccine candidate, EVX-B2, targeting Gonorrhea, has been extended, with a licensing decision from MSD expected in the first half of 2026. Should MSD exercise its option on EVX-B2, Evaxion will receive a $2.5 million upfront payment and will be eligible for milestone payments similar to EVX-B3.