Evaxion provides update on MSD collaboration - retains global rights to Gonorrhea vaccine candidate EVX-B2
Rhea-AI Summary
Evaxion (NASDAQ: EVAX) announced on December 19, 2025 that MSD will not exercise its option to develop the protein-based version of Evaxion’s Gonorrhea vaccine candidate EVX-B2, allowing Evaxion to retain global rights and seek a new licensing partner.
Evaxion noted preclinical studies show EVX-B2 protects against Gonorrhea and that MSD earlier exercised an option on a separate candidate, EVX-B3, for which Evaxion is eligible for up to $592 million in milestones plus royalties. Evaxion said the MSD decision does not affect its cash runway, which extends to the second half of 2027. Evaxion is also developing an mRNA version of EVX-B2 with Afrigen Biologics.
Positive
- Retains global rights to EVX-B2 after MSD decline
- Eligible for $592 million in milestones on EVX-B3
- Cash runway confirmed to second half of 2027
- Preclinical protection shown for EVX-B2
- Developing an mRNA version of EVX-B2 with Afrigen
Negative
- MSD declined option on protein-based EVX-B2, losing that partner
- EVX-B2 data cited are preclinical, no clinical efficacy reported yet
- Option decline may delay out-licensing/timeline for EVX-B2 (partner search required)
News Market Reaction
On the day this news was published, EVAX declined 18.26%, reflecting a significant negative market reaction. Argus tracked a trough of -15.4% from its starting point during tracking. Our momentum scanner triggered 22 alerts that day, indicating elevated trading interest and price volatility. This price movement removed approximately $10M from the company's valuation, bringing the market cap to $46M at that time. Trading volume was very high at 3.9x the daily average, suggesting heavy selling pressure.
Data tracked by StockTitan Argus on the day of publication.
Key Figures
Market Reality Check
Peers on Argus
Among close biotech peers, GOVX (-3.96%), PULM (-9.49%), IBIO (-6%), and LSTA (-4.29%) are down, while SYBX is up 2.72%. EVAX’s -1.88% move occurs in a mixed peer tape without scanner-flagged sector momentum.
Historical Context
| Date | Event | Sentiment | Move | Catalyst |
|---|---|---|---|---|
| Nov 20 | CMV vaccine data | Positive | +9.4% | New preclinical EVX‑V1 CMV data showing immune responses and viral inhibition. |
| Nov 12 | Financial calendar | Neutral | +0.7% | Release of 2026 financial calendar and key reporting dates. |
| Nov 7 | EVX‑01 phase 2 data | Positive | +1.9% | New biomarker and immune data from phase 2 EVX‑01 cancer vaccine trial. |
| Nov 6 | Q3 results, deals | Positive | +10.6% | Q3 results, strong EVX‑01 efficacy, and lucrative EVX‑B3 out‑licensing to MSD. |
| Nov 3 | New AI cancer vaccine | Positive | +0.3% | Launch of EVX‑04 AI‑designed AML vaccine candidate with strong preclinical data. |
Recent positive R&D and partnership updates have generally been followed by positive 24-hour price reactions.
Over the past months, Evaxion reported several positive updates. On November 6, 2025, Q3 results highlighted a 75% ORR (12/16) for EVX‑01, a $7.5M option fee and potential $592M from EVX‑B3, and cash runway to the second half of 2027, with shares up 10.6%. Subsequent AI‑driven pipeline and CMV vaccine data in early November produced additional, though smaller, positive price moves, reinforcing a pattern of constructive reactions to R&D progress.
Market Pulse Summary
The stock dropped -18.3% in the session following this news. A negative reaction despite management’s reiterated confidence would contrast with earlier positive moves of 9.43% and 10.6% after constructive data and deal news. MSD declining the EVX‑B2 option may be viewed as a setback even though Evaxion retains global rights and reports runway into the second half of 2027. The company’s reliance on future partnerships, including potential EVX‑B3 milestones up to $592M, could add further uncertainty.
Key Terms
milestone payments financial
royalties financial
preclinical studies medical
mRNA-version medical
in-licensing financial
AI-generated analysis. Not financial advice.
- MSD declines to exercise option for EVX-B2 development
- Evaxion is now able to out-license EVX-B2 to another partner
- Evaxion maintains its strong belief in EVX-B2, which has shown to be protective against Gonorrhea in preclinical studies
- There is no impact on Evaxion’s cash runway which extends to the second half of 2027
COPENHAGEN, Denmark, December 19, 2025 - Evaxion A/S (NASDAQ: EVAX) (“Evaxion”), a clinical-stage TechBio company specializing in developing AI-Immunology™ powered vaccines, has been informed that MSD (tradename of Merck & Co., Inc., Rahway, NJ, USA) will not exercise its option for Evaxion’s Gonorrhea vaccine candidate EVX-B2. Consequently, Evaxion retains global rights to EVX-B2 and will look for another potential licensing partner.
Earlier this year MSD exercised its option on a separate Evaxion vaccine candidate, EVX-B3. Evaxion is eligible for milestone payments up to
Gonorrhea infects more than 80 million people worldwide each year. Despite decades of research, no vaccine has been approved to date. Preclinical studies demonstrate that EVX-B2 protects against the Gonorrhea-bacteria. As such, it exemplifies the potential of Evaxion’s AI-Immunology™ platform to discover novel vaccine candidates.
“While we are disappointed by MSD’s decision not to exercise its option, we remain excited by, and committed to, the EVX-B2 program. The data we have generated to date are encouraging and underscore EVX-B2’s potential to be the first approved vaccine for Gonorrhea, addressing a major unmet medical need. We will now initiate the process of finding another partner on EVX-B2,” says Helen Tayton-Martin, CEO at Evaxion.
Evaxion did not include a potential in-licensing of EVX-B2 by MSD in its cash-flow outlook. Thus, the decision by MSD does not impact our cash runway which still extends to the second half of 2027.
MSD’s option was on the protein-based version of EVX-B2. Separately, Evaxion is also developing an mRNA-version of the candidate in collaboration with Afrigen Biologics.
Contact information
Evaxion A/S
Mads Kronborg
Vice President, Investor Relations & Communication
+45 53 54 82 96
mak@evaxion.ai
About Evaxion
Evaxion is a pioneering TechBio company based upon its AI platform, AI-Immunology™. Evaxion’s proprietary and scalable AI prediction models harness the power of artificial intelligence to decode the human immune system and develop novel immunotherapies for cancer, bacterial diseases, and viral infections. Based upon AI-Immunology™, Evaxion has developed a clinical-stage oncology pipeline of novel personalized vaccines and a preclinical infectious disease pipeline in bacterial and viral diseases with high unmet medical needs. Evaxion is committed to transforming patients’ lives by providing innovative and targeted treatment options. For more information about Evaxion and its groundbreaking AI-Immunology™ platform and vaccine pipeline, please visit our website.
Forward-looking statement
This announcement contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. The words “target,” “believe,” “expect,” “hope,” “aim,” “intend,” “may,” “might,” “anticipate,” “contemplate,” “continue,” “estimate,” “plan,” “potential,” “predict,” “project,” “will,” “can have,” “likely,” “should,” “would,” “could,” and other words and terms of similar meaning identify forward-looking statements. Actual results may differ materially from those indicated by such forward-looking statements as a result of various factors, including, but not limited to, risks related to: our financial condition and need for additional capital; our development work; cost and success of our product development activities and preclinical and clinical trials; commercializing any approved pharmaceutical product developed using our AI platform technology, including the rate and degree of market acceptance of our product candidates; our dependence on third parties including for conduct of clinical testing and product manufacture; our inability to enter into partnerships; government regulation; protection of our intellectual property rights; employee matters and managing growth; our ADSs and ordinary shares, the impact of international economic, political, legal, compliance, social and business factors, including inflation, and the effects on our business from other significant geopolitical and macro-economic events; and other uncertainties affecting our business operations and financial condition. For a further discussion of these risks, please refer to the risk factors included in our most recent Annual Report on Form 20-F and other filings with the US Securities and Exchange Commission (SEC), which are available at www.sec.gov. We do not assume any obligation to update any forward-looking statements except as required by law.
FAQ
Why did MSD decline the option for Evaxion's EVX-B2 (EVAX) on December 19, 2025?
Does Evaxion (EVAX) still own rights to the Gonorrhea vaccine candidate EVX-B2 after MSD's decision?
How does MSD's decision affect Evaxion's (EVAX) cash runway and financial outlook?
What clinical evidence supports Evaxion's EVX-B2 (EVAX) Gonorrhea vaccine candidate?
What are the commercial prospects for Evaxion's EVX-B3 and potential payments to EVAX shareholders?
Is Evaxion developing other versions of EVX-B2 (EVAX) after MSD declined the protein option?
