Evaxion expands vaccine development collaboration with MSD

Evaxion Biotech A/S, a clinical-stage TechBio company that specializes in AI-driven vaccine development, has announced a new agreement with MSD, the tradename of Merck & Co., Inc. This partnership focuses on the licensing of two of Evaxion's preclinical vaccine candidates, EVX-B2 and EVX-B3. The collaboration is set to expand the interaction between the two companies and promises substantial benefits for Evaxion.

Under the terms of the agreement, Evaxion has granted MSD an option to exclusively license its preclinical vaccine candidates. EVX-B2 is designed to combat Gonorrhea, while EVX-B3 targets another infectious agent that remains undisclosed. Evaxion will receive an upfront payment of $3.2 million. Additionally, the company could receive up to $10 million in 2025, depending on whether MSD exercises its licensing option for one or both of the vaccine candidates. On top of these payments, Evaxion is eligible for further development, regulatory, and sales milestone payments, which could amount to as much as $592 million per product. Evaxion will also receive royalties on the net sales of these potential vaccines.

Christian Kanstrup, CEO of Evaxion, expressed enthusiasm about the collaboration, seeing it as a transformative move for the company. He highlighted that the agreement provides strong validation for Evaxion’s AI-Immunology™ platform and their innovative vaccine candidates. Kanstrup emphasized that this partnership aligns with Evaxion's strategy to leverage external collaborations to unlock the full value of their technology, advancing their pipeline for the benefit of patients and shareholders alike.

Tarit Mukhopadhyay, Vice President and Head of Infectious Diseases and Vaccine Discovery at MSD Research Laboratories, also commented on the partnership. He noted that vaccines are a crucial tool for reducing the impact and spread of infectious diseases. Mukhopadhyay expressed excitement about the expanded collaboration with Evaxion, particularly in advancing EVX-B2 and EVX-B3 into clinical development.

The collaboration between Evaxion and MSD is not new. The two companies have been working together on EVX-B3 since 2023. Additionally, in the same year, MSD, through its Global Health Innovation Fund (MGHIF), led a private financing round for Evaxion, making it the company's largest shareholder. MGHIF also participated in Evaxion’s public offering earlier this year.

Evaxion plans to host a conference call and webcast on September 27, 2024, to discuss the new agreement in detail and share other recent company milestones. The event will include a Q&A session for participants.

Evaxion Biotech A/S is a Danish company that harnesses the power of artificial intelligence through its AI-Immunology™ platform to develop innovative vaccines and immunotherapies. Their pipeline includes clinical-stage oncology vaccines and preclinical candidates targeting bacterial and viral diseases with significant unmet medical needs. The company is committed to transforming patient outcomes by providing targeted and innovative treatment options.