Evaxion Biotech expands vaccine development collab with Merck

Evaxion Biotech (EVAX) announced that it has entered into an option and license agreement with MSD (MRK) for two preclinical vaccine candidates. 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 $3.2 million and up to $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 $592 million per product, as well as royalties on net sales.