Evaxion Biotech Reports Q1 Revenue Dip, Focuses on Key Trials and Partnerships

Evaxion Biotech reported no revenue in Q1, a decline from $51,000 in the same period last year. Despite this, the company is focusing on progressing the EVX-01 phase 2 trial and advancing collaborations with MSD on EVX-B2 and EVX-B3. The company has a cash runway into mid-2026 and is on track to achieve significant milestones in 2025.

Evaxion Biotech, a clinical-stage TechBio company specializing in AI-Immunology™ powered vaccines, reported its first quarter 2025 financial results, highlighting progress on its lead asset EVX-01 and collaborations with MSD. Despite no revenue recorded in Q1 2025, the company demonstrated significant advancements in its pipeline and strategic initiatives.

The company reported a net loss of $1.6 million for the quarter ended March 31, 2025, compared to a net income of $1.2 million in the same period last year. This decline is primarily attributed to a change in financial income, with remeasurement of the derivative liability from investor warrants from the January 2025 public offering [1].

Evaxion's cash position remains robust, with cash and cash equivalents totaling $17.8 million as of March 31, 2025, extending its cash runway to mid-2026. The company's successful capital markets initiatives in January 2025 significantly improved its cash position, compared to $6.0 million as of December 31, 2024 [1].

The company's research and development expenses decreased to $2.2 million for the period ended March 31, 2025, from $2.8 million in the same period last year, reflecting cost management and efficiencies. General and administrative expenses increased to $1.7 million, up from $1.6 million in the same period last year, primarily due to capital market transaction costs and increased investor relations activities [1].

Evaxion's strategic focus remains on the EVX-01 phase 2 trial, which is on track for a two-year readout in the second half of 2025. The company also reported positive data from the EVX-01 phase 2 trial, with 80% of vaccine targets triggering a tumor-specific immune response, as presented at the AACR Annual Meeting in April [1]. The company is also advancing collaborations with MSD on EVX-B2 and EVX-B3, with potential option exercise in the second half of 2025 [1].

The company's pipeline includes innovative development candidates for both cancer and infectious diseases. Evaxion is also developing a precision vaccine concept targeting non-conventional endogenous retrovirus (ERV) tumor antigens shared across patients, with plans to select the lead candidate for the program in the second half of 2025 [1].

Evaxion's business development strategy aims to create and improve opportunities for partnerships. The company is engaged in multiple parallel partnership discussions and expects to achieve at least two new agreements in 2025. However, the current turmoil in financial markets and increased regulatory uncertainty may impact decision processes with some potential partners [1].

The company's equity position improved significantly, with total equity amounting to $10.3 million as of March 31, 2025, compared to a negative equity of $(1.7) million as of December 31, 2024. The conversion of a €3.5 million loan from the European Investment Bank (EIB) into an equity-type instrument is expected to be finalized in the second quarter of 2025, further enhancing the company's financial flexibility and cash flow [1].

References:
[1] https://finance.yahoo.com/news/evaxion-announces-business-first-quarter-113000207.html