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)

Key Figures

EVX-B3 milestones up to $592 million Potential milestone payments tied to EVX-B3 development and sales

Annual Gonorrhea cases more than 80 million people Estimated global Gonorrhea infections per year

Cash runway second half of 2027 Company-stated cash runway unaffected by MSD’s EVX-B2 decision

Market Reality Check

$4.70 Last Close

Volume Volume 73,414 is below the 20-day average of 95,667 (relative volume 0.77). normal

Technical Price at 5.75 is trading above the 200-day MA of 3.38, despite a -1.88% move over 24h.

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.

Pattern Detected

Recent positive R&D and partnership updates have generally been followed by positive 24-hour price reactions.

Recent Company History

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

This announcement clarifies that MSD declined its option on EVX‑B2, leaving Evaxion with global rights while it seeks another partner. The company notes no impact on its cash runway, which extends into the second half of 2027, and highlights existing potential milestones up to $592M from EVX‑B3. Investors may focus on upcoming partnering efforts for EVX‑B2, progress on the mRNA version, and continued validation of the AI‑Immunology™ platform.

Key Terms

milestone payments financial

"Evaxion is eligible for milestone payments up to $592 million associated"

Milestone payments are predetermined sums a company agrees to pay or receive when specific development, regulatory, or commercial goals are reached in a partnership or license deal. Think of them like progress bonuses: they turn uncertain future outcomes into conditional cash events, so investors track them as potential sources of revenue, value inflection points, and risk—payments only arrive if the agreed milestones are actually achieved.

royalties financial

"as well as royalties on net sales."

Payments made to the owner of an asset or intellectual property each time that asset is used or a product is sold, often calculated as a percentage of sales or a set amount per unit. Royalties matter to investors because they create predictable, ongoing income streams and affect a company’s cash flow and valuation—like a landlord collecting rent or an author getting a steady cut whenever a book is sold.

preclinical studies medical

"EVX-B2, which has shown to be protective against Gonorrhea in preclinical studies"

Preclinical studies are initial research tests conducted in laboratories and on animals to evaluate the safety, effectiveness, and potential risks of a new medical treatment or drug before it is tested in humans. For investors, these studies are an important early step that can indicate whether a product has the potential to advance toward approval and commercial use, influencing the future prospects and valuation of related companies.

mRNA-version medical

"Separately, Evaxion is also developing an mRNA-version of the candidate"

An mRNA-version is a product—often a vaccine or therapeutic—designed using messenger RNA, a genetic instruction that tells cells to make a specific protein to trigger an immune response or treat a condition. For investors, mRNA versions matter because they can be developed and adapted faster than traditional drugs, so progress, trial results, manufacturing scale-up, or regulatory approval can quickly change a company’s potential value, similar to how a software update can rapidly improve a product’s usefulness.

in-licensing financial

"Evaxion did not include a potential in-licensing of EVX-B2 by MSD"

Acquiring the rights to develop, make, or sell a product or technology that another company already owns, usually through a contract that spells out payments, territory and responsibilities. For investors, in-licensing can speed growth and add potential revenue without building the product from scratch—like a restaurant using a successful chef’s recipe—but it also creates ongoing costs and dependence on an outside party’s data and performance.

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 $592 million associated with the development of EVX-B3, as well as royalties on net sales.

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?

The company announced MSD will not exercise its option on the protein-based EVX-B2; no further reason was provided.

Does Evaxion (EVAX) still own rights to the Gonorrhea vaccine candidate EVX-B2 after MSD's decision?

Yes. Evaxion retains global rights to EVX-B2 and will seek another licensing partner.

How does MSD's decision affect Evaxion's (EVAX) cash runway and financial outlook?

Evaxion stated the MSD decision does not impact cash runway, which extends to the second half of 2027.

What clinical evidence supports Evaxion's EVX-B2 (EVAX) Gonorrhea vaccine candidate?

Evaxion reported that preclinical studies demonstrate EVX-B2 protects against the Gonorrhea bacteria.

What are the commercial prospects for Evaxion's EVX-B3 and potential payments to EVAX shareholders?

Evaxion is eligible for up to $592 million in milestone payments for EVX-B3, plus royalties on net sales.

Is Evaxion developing other versions of EVX-B2 (EVAX) after MSD declined the protein option?

Yes. Evaxion is also developing an mRNA version of EVX-B2 in collaboration with Afrigen Biologics.