The agreement expands the companies’ current collaboration and carries significant value for Evaxion.

Under the terms of the agreement, Evaxion has granted MSD an option to exclusively license Evaxion’s 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.

In return, Evaxion receives an upfront payment of USD 3.2 million and up to USD 10 million in 2025, contingent upon MSD exercising its option to license either one or both candidates.

In return, Evaxion receives an upfront payment of USD 3.2 million and up to USD 10 million in 2025, contingent upon MSD 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 USD 592 million per product, as well as royalties on net sales.

“This expanded collaboration provides strong validation of our AI-Immunology platform and novel vaccine candidates. The agreement follows our strategy of leveraging external collaborations to unlock the value of our technology while advancing our innovative pipeline to create long-term value for patients and our shareholders,” says Christian Kanstrup, CEO, Evaxion.

Evaxion and MSD have been collaborating on EVX-B3 since 2023. Also in 2023, MSD, 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