Evaxion Biotech (EVAX) Q3 2024 earnings summary

Executive summary

• Achieved significant milestones, including a transformative licensing agreement and expanded vaccine collaboration with MSD for EVX-B2 and EVX-B3, providing substantial financial and strategic value.

• Released positive one-year clinical data from the phase 2 trial of EVX-01, which showed a 69% overall response rate in advanced melanoma, and presented pre-clinical proof of concept for the mRNA-based B2 vaccine.

• Launched an upgraded/improved version of the EDEN AI/AI-Immunology platform for vaccine antigen prediction.

• Appointed a new interim CFO, Thomas Schmidt, and saw increasing external interest and ongoing partnership discussions.

Financial highlights

• Q3 2024 revenue was $3 million, primarily from the MSD agreement, compared to nil in Q3 2023.

• Net loss for Q3 2024 was $1.9 million ($0.04 per share), a significant improvement from $5.7 million ($0.21 per share) in Q3 2023, driven by recognized revenue and reduced expenses.

• Cash and cash equivalents stood at $4.6 million at the end of September 2024, not including the $3.2 million MSD upfront payment received in October.

• R&D expenses decreased to $2.6 million from $2.8 million year-over-year; G&A expenses were $2.1 million, down from $2.9 million YoY.

• Total equity stood at $0.1 million as of September 30, 2024, with total assets of $15.2 million and liabilities of $15.1 million.

Outlook and guidance

• Existing cash is expected to fund operations into March 2025; further business development income or funding is required to extend runway.

• Up to $10 million in milestone payments from MSD expected in 2025, contingent on option exercises, in addition to the $3.2 million upfront received.

• Business development income target of $14 million for 2024 will not be met; some deals may close in 2025.

• Ongoing focus on business development and capital market activities to improve cash flow.