• Revenue: $3.3 million from the option and license agreement with MSD.
• Cash and Cash Equivalents: $6 million as of December 2024, up from $5.6 million at the end of 2023.
• Net Loss: $10.6 million for 2024, equating to $0.20 per basic and diluted share.
• Operational Cash Burn: Expected to be $14 million for 2025, consistent with 2024.
• Cash Runway: Sufficient funds to cover operating and capital expenditures into mid-2026.
• Equity Improvement: Cash and cash equivalents of $11.9 million as of January 27, 2025, with an additional $10.8 million from a public offering closing on January 31, 2025.

• Warning! GuruFocus has detected 3 Warning Signs with EVAX.

Release Date: April 01, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• Evaxion Biotech AS (NASDAQ:EVAX) entered into a transformational partnership with MSD in September 2024, which is tracking well towards potential option exercise in the second half of 2025.
• The company presented convincing one-year data for the EVX-01 Phase 2 trial, showing a 69% overall response rate and significant tumor reduction in patients.
• Evaxion Biotech AS (NASDAQ:EVAX) has extended its cash runway to mid-2026 through public offerings and investments from MSD Global Health Innovation Fund.
• The company has developed a new precision cancer vaccine concept using its AI-Immunology platform, targeting nonconventional endogenous retroviruses.
• Evaxion Biotech AS (NASDAQ:EVAX) is on track to achieve significant milestones in 2025, including the selection of lead antigens for its CMV vaccine candidate and the potential generation of two new business agreements.

Negative Points

• The company received a delisting determination from NASDAQ in 2024, although it was later withdrawn.
• Evaxion Biotech AS (NASDAQ:EVAX) recorded a net loss of $10.6 million for 2024, despite improvements in revenue and cost optimization.
• The conversion of a EUR3.5 million loan from the European Investment Bank into equity has been delayed to the second quarter of 2025.
• The collaboration with Expression Biotechnologies ended, requiring Evaxion Biotech AS (NASDAQ:EVAX) to find new solutions for antigen production.
• There is uncertainty around the data needed for potential transactions, as partners await results from similar trials by other companies like Merck and Moderna.

Q & A Highlights

Q: Christian, as you select new pipeline candidates, how are you certain that those will be partnerable assets? Are these being done with input from potential partners? A: Christian Kanstrup, CEO: It's crucial to create partnerable assets, especially with a multi-partner approach. We start with unmet medical needs and commercial potential. We engage in early dialogues with potential partners to shape the preclinical program according to their expectations. This early consultation is vital, especially in novel areas, to understand what potential buyers want.

Q: Regarding the CMV vaccine, was the decision to hand back the rights from Expression Biotech mutual, and does it affect your capabilities? A: Christian Kanstrup, CEO: The decision was on their end, and we acquired full rights as per contract. Birgitte Rno, CSO: Expression Technology was involved in production, but we are exploring other solutions. We aim to test our AI-Immunology identified targets on different models, preparing for vaccine antigen selection in the second half of 2025.

Q: For EVX-01, what data should we expect at AACR, and what data do potential collaborators need for a transaction? A: Birgitte Rno, CSO: At AACR, we will present biomarker data and additional T cell data. Christian Kanstrup, CEO: The data we are generating is what we need. Collaborators are also interested in data from Merck and Moderna's trials. We expect early Phase 3 data from them later this year, which will be crucial.

Q: What types of cancers could potentially be targeted with the ERV vaccines? A: Birgitte Rno, CSO: We've mapped out indications with a high ERV burden, leading to our precision group vaccine concept. We have a list of cancer indications to explore further and will share more information by the end of the year.

Q: Will you release any data on EVX-B2 and B3 before submitting to MSD for their option exercise decision? A: Christian Kanstrup, CEO: For B2, MSD is conducting confirmatory work, so no additional data will be released. For B3, the work plan agreed upon in 2023 is being completed, with major work done by MSD.

For the complete transcript of the earnings call, please refer to the full earnings call transcript.