Benzinga·2025-12-19 17:43Core Viewpoint - Merck & Co. Inc. will not exercise its option for Evaxion A/S's Gonorrhea vaccine candidate EVX-B2, allowing Evaxion to retain global rights and seek another licensing partner [1][2]. Group 1: Company Developments - Evaxion's Gonorrhea vaccine candidate EVX-B2 has shown protective effects against the bacteria in preclinical studies, yet no vaccine has been approved for Gonorrhea despite over 80 million infections annually [2]. - Evaxion's CEO, Helen Tayton-Martin, stated that the decision by Merck does not affect the company's cash runway, which extends to the second half of 2027 [2]. - Merck's option was specifically for the protein-based version of EVX-B2, while Evaxion is also developing an mRNA version in collaboration with Afrigen Biologics [3]. Group 2: Financial Aspects - Evaxion received a cash payment of $7.5 million from Merck and is eligible for future milestone payments of up to $592 million, along with royalties on net sales for the EVX-B3 vaccine [4]. - Merck will take full responsibility for the further development and associated costs of the EVX-B3 vaccine [4]. Group 3: Market Reaction - Following the news, Evaxion's stock (EVAX) experienced a decline of 14.61%, trading at $4.91 [5].