Merck Licenses AI-Driven Vaccine Candidate from Evaxion in $592M Deal

Merck & Co. has exercised its option to license a preclinical vaccine candidate from Danish biotech Evaxion Biotech, marking a significant development in the application of artificial intelligence to vaccine discovery. The deal, potentially worth up to $592 million, underscores the growing interest in AI-driven approaches to addressing global health challenges.

Evaxion's AI Platform Yields Promising Vaccine Candidate

Evaxion's AI-Immunology platform has identified a novel vaccine candidate, EVX-B3, targeting a pathogen associated with repeated infections and potentially serious complications. The candidate addresses what the companies describe as "a serious global medical issue" for which no vaccines are currently available.

Tarit Mukhopadhyay, Vice President and Head of Infectious Diseases and Vaccine Discovery at Merck Research Laboratories, highlighted the significance of the AI-driven approach: "With its AI-Immunology platform, Evaxion has identified novel protective vaccine targets for a pathogen long considered difficult to address. We look forward to further evaluating EVX-B3 as part of our early vaccine pipeline."

Deal Structure and Financial Impact

The licensing agreement stems from a broader collaboration between Merck and Evaxion initiated in 2024. Under the terms of the deal:

• Merck will pay $7.5 million upfront to exercise its option for EVX-B3.
• Evaxion is eligible for up to $592 million in milestone payments, plus royalties.
• The upfront payment extends Evaxion's cash runway into the first half of 2027.

Moving forward, Merck will assume full responsibility for the development of EVX-B3. This deal structure allows Evaxion to benefit from Merck's extensive resources and expertise in vaccine development while retaining potential long-term value through milestone payments and royalties.

Future Prospects and Ongoing Collaboration

The partnership between Merck and Evaxion extends beyond EVX-B3. The companies have announced an extension to the evaluation period for a second preclinical vaccine candidate, EVX-B2, which targets gonorrhea. A decision on potential licensing for this candidate is expected in the first half of next year.

If Merck opts to license EVX-B2, Evaxion will receive an additional $2.5 million upfront payment and could earn up to $592 million in milestone payments. This ongoing collaboration demonstrates the potential for AI-driven approaches to continually yield promising vaccine candidates across multiple disease areas.