Evaxion Releases Q2 2024 Financials and Business Update

COPENHAGEN, Denmark, Aug. 14, 2024 - Evaxion Biotech A/S, listed on NASDAQ as EVAX, recently announced its second-quarter financial results for 2024 alongside notable business advancements. The company, a frontrunner in leveraging AI-Immunology™ to develop vaccines, shared updates about its multi-faceted business model which focuses on Targets, Pipeline, and Responders through various partnerships.

Among its significant achievements, Evaxion highlighted ongoing partnership discussions, promising Phase 2 immune data on their leading asset EVX-01 presented at ASCO, which showed a 67% Objective Response Rate from Phase 1. The company is preparing for a Phase 2 one-year clinical data readout at the ESMO Congress in September 2024. Additionally, their AI-Immunology™ building block demonstrated improved performance at a computational biology conference. Several crucial milestones are anticipated to be reported in the upcoming months.

Christian Kanstrup, the CEO of Evaxion, expressed satisfaction with the company's progress, stating that they are on track to meet several key 2024 milestones. He noted the significant interest from external parties in their AI-Immunology™ platform and pipeline candidates. Kanstrup also highlighted the EVX-01 immune data presented at ASCO and the anticipated clinical readout at ESMO Congress 2024. He emphasized the continued enhancement of their AI-Immunology™ platform, evidenced by positive feedback from the World Intellectual Property Organization on their patent application and the presentation of their updated EvaxMHC building block.

Evaxion has outlined several crucial milestones for 2024. These include concluding the final MTA study for EVX-B1 with a potential partner by the first quarter, launching the EDEN™ model version 5.0 by mid-2024, obtaining preclinical Proof-of-Concept for EVX-B2-mRNA by the third quarter, and concluding target discovery and validation work for EVX-B3 in collaboration with MSD by the second half of the year. The company also aims to secure preclinical Proof-of-Concept for Precision ERV cancer vaccines by the second half of 2024 and generate business development income or cash equivalent to their 2024 cash burn of $14 million.

In terms of financial performance, Evaxion reported a cash position of $8.0 million as of June 30, 2024, up from $5.6 million at the end of 2023. They project that their current cash reserves will fund operations and capital expenditures through February 2025. Research and Development expenses for the second quarter were $2.8 million, slightly down from $2.9 million in the same period the previous year, primarily due to a reduced headcount offset by increased development activity costs. General and Administrative expenses were $2.0 million, a decline from $2.7 million in 2023, attributed to lower external and employee-related costs.

The net loss for the quarter was $6.2 million, or $(0.12) per share, compared to $5.7 million, or $(0.21) per share, in the same quarter last year. This increased loss was mainly due to the remeasurement of $1.7 million in derivative liabilities, which were eventually reversed and included in other reserves. Total equity as of June 30, 2024, stood at $1.3 million.

Evaxion noted that based on their current cash position and expected income from business development deals or additional funding, they need to address the significant doubt about their ability to continue as a going concern. The company received a Nasdaq equity deficiency letter on May 7, 2024, and has shared a compliance plan with Nasdaq, which has been accepted, providing them until November 4, 2024, to meet the requirements.

In summary, Evaxion Biotech A/S has shown substantial progress in its AI-Immunology™ initiatives and continues to work towards pivotal milestones while navigating financial challenges and partnership opportunities.