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News  ›  Benzinga

Evaxion Seeks New Partner For Gonorrhea Vaccine After Merck Opts Out

Benzinga Logo Benzinga By Vandana Singh
Evaxion Seeks New Partner For Gonorrhea Vaccine After Merck Opts Out

Merck & Co. has decided not to exercise its option for Evaxion's gonorrhea vaccine candidate EVX-B2 (protein-based version), allowing Evaxion to retain global rights and seek alternative licensing partners. The decision does not impact Evaxion's cash runway extending to mid-2027. Evaxion continues developing an mRNA version with Afrigen Biologics and previously out-licensed EVX-B3 to Merck in September for $7.5 million upfront plus up to $592 million in milestone payments.

Insights
BACpL   positive

Maintains Buy rating and sees promising growth potential for Medtronic's medical technologies


EVAX   negative

Merck's decision to opt out of the EVX-B2 protein-based vaccine represents a setback, requiring Evaxion to find a new partner. Stock declined 14.61% on the news. However, the company maintains cash runway and retains global rights to the candidate, providing some mitigation.