Evaxion Biotech (EVAX) Q1 2025 earnings summary

Executive summary

• Achieved key milestones in 2025, including positive phase II data and extension dosing for EVX-01, and continued execution on strategic objectives.

• Partnership with Merck/MSD remains on track, with a potential $10 million milestone in H2 2025 if options are exercised.

• Optimized AI-Immunology™ platform and advanced infectious disease vaccine candidate selection with expert panel guidance.

• Business development pipeline supports the full-year target of at least two new deals, despite increased macroeconomic and regulatory risks.

• Active participation in major scientific conferences has enhanced engagement with the scientific community and potential partners.

Financial highlights

• Cash and cash equivalents increased to $17.8 million (DKK 17.8 million) at March 31, 2025, up from $6 million at year-end 2024, due to capital market activities.

• Cash runway extends to mid-2026, covering key upcoming milestones.

• Net loss of $1.6 million in Q1 2025, compared to net income of $1.2 million in Q1 2024, mainly due to changes in financial income from derivative liabilities.

• Total equity at end of Q1 was $10.3 million, significantly strengthened versus end of 2023.

• R&D expenses decreased to $2.2 million from $2.8 million year-over-year; G&A expenses increased to $1.7 million from $1.6 million.

Outlook and guidance

• Confident in achieving at least two new business development deals in 2025, though macroeconomic risks are rising.

• Key milestones ahead include Merck's option exercise decision, EVX-01 phase II two-year readout, and selection of new pipeline candidates.

• Cash position expected to last beyond major 2025 milestones, with potential to extend into 2027 if Merck options are exercised.

• Operational cash burn for 2025 expected at ~$14 million, with strict cost control measures in place.