NASDAQ:EVAX
READ THE FULL EVAX RESEARCH REPORT
Evaxion (NASDAQ:EVAX) is a clinical stage company that is making AI useful in the current environment by using the technology to develop new cancer-fighting vaccines. The company notes that it has demonstrated that it can identify, through the company’s AI models, novel targets within days, rather than the traditional years it commonly takes with standard drug discovery methods. The use of AI also allows the company to decrease the risk of failure as the technology filters out those results that may result in low efficacy or unacceptable toxicity.
The company announced its 3Q financial results, which showed earnings per share of a loss of $0.04 on revenue of $3 million, both of which were better than estimates. Company management, during the conference call accompanying the release, noted that 2024 spending was lower than 2023 as cost reduction initiatives take hold. The company also noted that the cash on hand was projected to be sufficient for operations through March 2025.
The company also highlighted that it has entered into an option and license agreement with MSD (which is the tradename of Merck & Co., Inc, Rahway, NJ) for two preclinical vaccine candidates, which we have written about before. The company has collaborated with MSD in the past and we were pleased to see the relationship expand—as it will benefit both the company and potential patients. Under the terms of the agreement, Evaxion grants MSD the option to exclusively license two preclinical vaccine candidates: EVX-B2 and EVX-B3—the former of which is a protein-based candidate for gonorrhea and the latter targeting an undisclosed infectious agent. In return, Evaxion received an upfront payment of $3.2 million and could receive an additional $10 million in 2025, the payment amount dependent on MSD exercising it option to license one or both candidates.
In addition, the company reminded investors that its ongoing Phase 2 trial of its personalized cancer vaccine, EVX-01, triggered a 79% tumor-specific response, a substantial increase from the 58% response rate seen in the Phase I trial. As we’ve talked about in previous reports, the AI-Immunology platform of Evaxion showed the promise of improving treatment for patients by being able to “learn” from previous trials and improve upon the treatment as it moves along the approval process. This result is further confirmation of the vast potential that this platform has and illustrates why we continue to have a very positive view on the company.
Specifically in the case of EVX-01, these results, in our view, greatly improve the chance that the treatment will be able to make in through the approval process and reach commercialization stage. Immune responses to such treatments are looked at closely by regulators and these results, according to the company, compare favorably to other personalized cancer neoantigen trials.
It is updates like these that continue to excite us about the investment opportunities offered by EVAX. In our view, this is the tip of the iceberg of what the AI platforms developed by Evaxion can achieve and positive news will continue to come out as we move forward. We suggest investors investigate EVAX further and consider investing, as we believe the company is at an inflection point that is the start of sustained uptrend.
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