Merck & Co. Inc. (NYSE:MRK) will not exercise its option for Evaxion A/S (NASDAQ:EVAX) Gonorrhea vaccine candidate EVX-B2.
Gonorrhoea is a common, sexually transmitted infection caused by Neisseria gonorrhoeae.
Consequently, Evaxion retains global rights to EVX-B2 and will look for another potential licensing partner.
Gonorrhea infects more than 80 million people worldwide each year. Despite decades of research, no vaccine has been approved to date. Preclinical studies demonstrate that EVX-B2 protects against the Gonorrhea-bacteria.
“Evaxion did not include a potential in-licensing of EVX-B2 by MSD in its cash-flow outlook. Thus, the decision by MSD does not impact our cash runway, which still extends to the second half of 2027,” says Helen Tayton-Martin, CEO at Evaxion.
Merck’s option was on the protein-based version of EVX-B2. Separately, Evaxion is also developing an mRNA version of the candidate in collaboration with Afrigen Biologics.
In September, Evaxion out-licensed its vaccine candidate EVX-B3 to Merck under the option and license agreement entered into by the two companies in September 2024.
Evaxion received a cash payment of $7.5 million and will be eligible for future development, regulatory, and sales milestone payments of up to $592 million, as well as royalties on net sales.
Merck will assume full responsibility and carry all costs for the further development of the EVX-B3 vaccine.
Last week, the U.S. Food and Drug Administration (FDA) approved GSK Plc’s (NYSE:GSK) supplemental New Drug Application for gepotidacin as an oral option for uncomplicated urogenital gonorrhoea.
Price Action: EVAX stock is down 14.61% at $4.91 at the last check on Friday.
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