EVAX

JonesResearch initiated coverage of Evaxion Biotech with a Buy rating and $10 price target. The firm says Evaxion is a clinical-stage company leveraging its AIdriven platform to develop vaccines. The company's Phase 2 data in melanoma showed a durable clinical benefit and sustained immune response at the two-year cutoff, the analyst tells investors in a research note.

Lake Street analyst Thomas Flaten raised the firm's price target on Evaxion Biotech (EVAX) to $11 from $6 and keeps a Buy rating on the shares after the company announced two-year Phase 2 data for its personalized cancer vaccine, EVX-01, in advanced melanoma. The two-year EVX-01 data and Merck's (MRK) option exercise for EVX-B3 further validate Evaxion's platform, the analyst tells investors.

H.C. Wainwright raised the firm's price target on Evaxion Biotech (EVAX) to $16 from $14 and keeps a Buy rating on the shares. The firm notes that as it expected, Merck (MRK) exercised its option to in-license EVX-B3, Evaxion's discovery-stage vaccine candidate against an undisclosed bacterial pathogen. Wainwright's positive takeaways are threefold, namely Merck's option exercise extends Evaxion's cash runway to the first half of 2027, carrying EVAX through several milestones across its infectious disease and oncology programs; Merck's decision to extend and expand review of the EVX-B2 program strengthens likelihood that it could choose to in-license the program in the first half of 2026; and this represents the second deal expansion with Merck, already a 20% owner of Evaxion, and thus deepens validation for the company's AI-Immunology target discovery platform.

Evaxion Biotech announced the pricing of a public offering of an aggregate of 3,997,361 of its American Depositary Shares and warrants to purchase up to 50% of the ADSs offered at a combined public offering price of $2.71 per ADS with one accompanying warrant for each two ADSs. MSD Global Health Innovation Fund, who became an Evaxion shareholder in December 2023, is also participating in this offering along with healthcare-focused investment funds. There is also participation from Evaxion's Board of Directors and Management. The warrants will have an exercise price of $2.71 per ADS, will be exercisable immediately upon issuance and will expire five years following the date of issuance. Each ADS represents fifty ordinary shares of the company. The closing of the offering is expected to occur on or about January 31, 2025, subject to the satisfaction of customary closing conditions. Lake Street Capital Markets and Jones are acting as the exclusive placement agents for the offering. The gross proceeds to the company from the offering are expected to be $10.8M, before deducting the placement agent's fees and other offering expenses payable by the company. The company intends to use the net proceeds of this offering to advance the company's preclinical and clinical pipeline, and for continuing operating expenses and working capital.