Evaxion Biotech A/S (NASDAQ:EVAX) inked an option and licensing deal with Merck & Co., Inc (NYSE:MRK) for two preclinical vaccine candidates.
Evaxion also granted Merck an option to license preclinical vaccine candidates EVX-B2 and EVX-B3.
EVX-B2 is a protein-based candidate for Gonorrhea, and EVX-B3 targets an undisclosed infectious agent.
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Evaxion will receive an upfront payment of $3.2 million and up to $10 million in 2025 as part of the deal. The agreement is contingent upon Merck exercising its option to license either one or both candidates.
In addition, Evaxion is eligible for development, regulatory, and sales milestone payments with a potential value of up to $592 million per product, and royalties on net sales.
Christian Kanstrup, CEO of Evaxion, called the collaboration “transformative” and a “strong validation” of the company’s AI-Immunology platform and vaccine candidates.
Evaxion and Merck have been collaborating on EVX-B3 since 2023. At the time, Merck, through its Global Health Innovation Fund (MGHIF), led a private placement round of financing for Evaxion to become the company’s single largest shareholder.
MGHIF also participated in Evaxion’s public offering in February this year.
Last year, Evaxion Biotech collaborated with Afrigen Biologics to develop a prophylactic vaccine based on Evaxion’s EDEN-discovered gonorrhea targets.
Price Action: EVAX stock is up 8.83% at $3.08 at last check Thursday.
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Image: Courtesy of Merck
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