Evaxion Secures $7.5 Million from MSD for EVX-B3 Vaccine—Cash Runway Extended to 2027 and $592 Million Milestone Potential
Milestone-Rich Deal Spotlights Industry Confidence in AI-Driven Vaccine Discovery
In a high-impact move for Evaxion A/S (NASDAQ: EVAX), the company has granted an exclusive license for its preclinical vaccine candidate, EVX-B3, to pharmaceutical heavyweight MSD (known as Merck & Co., Inc. in the U.S.). The transaction, sealed with a $7.5 million upfront cash payment, could deliver milestone payments reaching as high as $592 million along with royalties on future net sales if all benchmarks are achieved.
Financial Strength Bolstered: Cash Runway Now to 2027
The immediate injection of $7.5 million pushes Evaxion’s financial horizon well into the first half of 2027, granting the company significant breathing room to pursue R&D projects. With MSD assuming all further development costs and responsibilities for EVX-B3, Evaxion's operational focus now pivots toward advancing other assets on its AI-Immunology™ platform and nurturing new partnership opportunities.
| Deal Component | Details |
|---|---|
| Upfront Payment | $7.5 million |
| Milestone Potential | Up to $592 million |
| Royalty Rights | Yes, on net sales |
| Cash Runway Extension | First half of 2027 |
| MSD Development Responsibility | Full responsibility & cost |
Strategic Partnership Validates Evaxion’s AI-Immunology™ Platform
This partnership goes beyond finances—it serves as a robust endorsement of Evaxion’s AI-Immunology™ technology by one of the world’s leading vaccine companies. MSD’s decision follows a year of successful collaboration, further validating Evaxion’s ability to leverage AI for discovering vaccine candidates that target challenging and previously unaddressed pathogens.
EVX-B3, discovered with this proprietary platform, targets a pathogen responsible for recurrent infections and significant complications—one with no existing vaccine solutions.
Potential for More: Second Candidate EVX-B2 Still on the Table
Evaxion and MSD are keeping the door open for another possible collaboration. The evaluation window for EVX-B2, a separate preclinical vaccine candidate targeting Gonorrhea, has been extended through the first half of 2026. If MSD opts to in-license EVX-B2, Evaxion could gain another $2.5 million upfront and access to similar milestone and royalty opportunities as with EVX-B3. Importantly, milestones are not fully additive—there is some adjustment if both programs advance successfully.
| Vaccine Candidate | Current Status | Next Milestone | Upfront if Licensed | Potential Milestones |
|---|---|---|---|---|
| EVX-B3 | Licensed to MSD | Development by MSD | $7.5 million | Up to $592 million |
| EVX-B2 | Evaluation Period Extended | MSD decision H1 2026 | $2.5 million (if option exercised) | Up to $592 million |
Takeaway: Long-Term Opportunity Rests on Platform Validation and Future Partnerships
This agreement places Evaxion in a stronger financial and strategic position—delivering not only an extended runway and non-dilutive capital but also market validation from an industry leader. Investors and biotech watchers will want to keep an eye on updates around the ongoing development of EVX-B3 under MSD’s stewardship and any forthcoming news about EVX-B2. Evaxion’s focus on its AI-driven R&D and partnership model could drive further headline-making deals in the future.
What’s Next?
Evaxion management is hosting a conference call and webcast at 2:30pm CET/8:30am EST to discuss the MSD partnership, answer questions, and provide updates on its strategy and development pipeline.
Contact Information:
If you have feedback or concerns about the content, please feel free to reach out to us via email at support@marketchameleon.com.
About the Publisher - Marketchameleon.com:
Marketchameleon is a comprehensive financial research and analysis website specializing in stock and options markets. We leverage extensive data, models, and analytics to provide valuable insights into these markets. Our primary goal is to assist traders in identifying potential market developments and assessing potential risks and rewards.
NOTE: Stock and option trading involves risk that may not be suitable for all investors. Examples contained within this report are simulated and may have limitations. Average returns and occurrences are calculated from snapshots of market mid-point prices and were not actually executed, so they do not reflect actual trades, fees, or execution costs. This report is for informational purposes only, and is not intended to be a recommendation to buy or sell any security. Neither Market Chameleon nor any other party makes warranties regarding results from its usage. Past performance does not guarantee future results. Please consult a financial advisor before executing any trades. You can read more about option risks and characteristics at theocc.com.
The information is provided for informational purposes only and should not be construed as investment advice. All stock price information is provided and transmitted as received from independent third-party data sources. The Information should only be used as a starting point for doing additional independent research in order to allow you to form your own opinion regarding investments and trading strategies. The Company does not guarantee the accuracy, completeness or timeliness of the Information.
Disclosure: This article was generated with the assistance of AI