Evaxion will receive a cash payment of USD 7.5 million and will be eligible for future development, regulatory and sales milestone payments of up to USD 592 million, as well as royalties on net sales. MSD will assume full responsibility and carry all costs for the further development of the EVX-B3 vaccine.

This has significant financial value for us, but equally important is the massive validation of our AI-Immunology platform by MSD, the world leader in vaccine development and commercialization.

“This has significant financial value for us, but equally important is the massive validation of our AI-Immunology platform by MSD, the world leader in vaccine development and commercialization. We could not have found a better partner to develop and maximize the full potential for our AI-discovered vaccine candidate. Further, this exemplifies our strategic approach to monetize value through high-impact partnerships,” says Birgitte Rønø, CSO and interim CEO of Evaxion.

EVX-B3

EVX-B3, currently in preclinical development, aims to address a serious global medical issue, targeting a pathogen associated with repeated infections, increasing incidence and often serious medical complications, and for which no vaccines are currently available. Identified with Evaxion’s AI-Immunology platform, EVX-B3 showcases the platform’s ability to uncover novel targets that would otherwise remain undiscovered, describes the company.

EVX-B3 was discovered and developed in a collaboration between Evaxion and MSD originally established in September 2023. A year later, the collaboration was expanded through the option and license agreement also covering EVX-B2, a preclinical vaccine candidate against Gonorrhea.

Extend the evaluation period

Evaxion and MSD have agreed to extend the evaluation period for EVX-B2 as an amendment to the option and license agreement. The extension follows an expansion of the initial evaluation plan encompassing further experiments. Consequently, a decision on potential in-licensing of EVX-B2 by MSD is now expected in the first half of 2026.

Should MSD exercise the option on EVX-B2, Evaxion will receive a cash payment of USD 2.5 million and be eligible for future development, regulatory and sales milestone payments of up to USD 592 million as well as royalties on sales as for EVX-B3. The milestones are not additive per product to get to total deal value as some discount may occur if both programs progress successfully.