Evaxion Stock Jumps A Whopping 43% Pre-Market – Here’s What Happened

Evaxion A/S (EVAX) said on Thursday that it has out-licensed its vaccine candidate EVX-B3 to Merck (MRK), sending shares of the company rallying 42% in the pre-market session.

Evaxion will receive a cash payment of $7.5 million in addition to future milestone payments of up to $592 million, the company said. It will also be eligible for royalties on net sales.

The cash payment will extend Evaxion’s cash runway to the first half of 2027, it said. Cash at hand will be invested in operating and developing the business, it added.

The out-licensing is part of the option and license agreement between the two companies in September 2024. Merck will now be wholly responsible for the further development of the EVX-B3 vaccine, which is in preclinical development.

On Stocktwits, retail sentiment around EVAX stock stayed within the ‘extremely bullish’ territory over the past 24 hours, while message volume rose from ‘normal’ to ‘extremely high’ levels.

EVX-B3 was discovered and developed in a collaboration between Evaxion and Merck. It aims to address a serious global medical issue for which no vaccines are currently available, Evaxion said, without naming the condition.

Merck retains an option in a second vaccine candidate called EVX-B2. It is a preclinical vaccine candidate against Gonorrhea, and a decision on potential licensing is expected in the first half of 2026. Were Merck to exercise the option, Evaxion will receive a cash payment of $2.5 million and will be eligible for milestone payments of up $592 million in addition to royalties on sales.

EVAX stock is down 22% this year and approximately 77% over the past 12 months. 

Read also: Capricor Stock Rises Pre-Market Over Fresh Hopes of Deramiocel Approval In Treating Genetic Disorder

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