Evaxion Biotech deal underscores potential of AI models, says H.C. Wainwright

Evaxion (EVAX) has entered into an option and licensing agreement with Merck (MRK) for its preclinical vaccine candidates EVX-B2 and EVX-B3, under which Evaxion is expected to receive $3.2M in an upfront payment in 2024 and up to $10M in 2025, pending Merck exercising its option to in-license either one or both candidates, which is likely, H.C. Wainwright analyst Swayampakula Ramakanth tells investors. The firm, which made no change to its Buy rating or $14 price target on Evaxion shares, says the announcement underscores the potential of Evaxion’s AI models and provides additional validation of Evaxion’s AI-vaccine platforms and feels that EVX-B2 and -B3 are just the beginning of the company’s potential business development opportunities.