Evaxion Biotech A/S, a leading biotech company, has secured a significant deal with pharmaceutical giant Merck & Co., Inc. This agreement involves an option and licensing deal for two of Evaxion’s promising preclinical vaccine candidates: EVX-B2 and EVX-B3.
EVX-B2 is a protein-based vaccine candidate specifically designed to combat Gonorrhea, while EVX-B3 targets an undisclosed infectious agent. The deal grants Merck the option to license either or both of these candidates.
As part of the agreement, Evaxion will receive an immediate upfront payment of $3.2 million. The company is also eligible for additional payments of up to $10 million in 2025, contingent on Merck exercising its option to license the candidates.
Furthermore, Evaxion stands to receive substantial development, regulatory, and sales milestone payments, with a potential value of up to $592 million per product. The company will also receive royalties on net sales if the vaccines are successful and reach the market.
Christian Kanstrup, CEO of Evaxion, described the collaboration as “transformative” and a “strong validation” of the company’s AI-Immunology platform and its vaccine candidates. This partnership marks a significant step forward for Evaxion, signifying the potential of its innovative technologies.
The relationship between Evaxion and Merck goes back to 2023, when Merck, through its Global Health Innovation Fund (MGHIF), led a private placement financing round for Evaxion, becoming the company’s largest shareholder. MGHIF further participated in Evaxion’s public offering in February of this year.
Evaxion’s commitment to developing impactful vaccines is evident in their previous collaboration with Afrigen Biologics, where they joined forces to create a prophylactic vaccine based on Evaxion’s EDEN- discovered gonorrhea targets.
This deal demonstrates the growing interest in Evaxion’s innovative vaccine development approach. The company’s stock price has reflected this positive sentiment, with EVAX shares climbing 8.83% to $3.08 at the last check on Thursday.
