MSD has decided not to exercise its option for Evaxion A/S’s gonorrhea vaccine candidate EVX‑B2, eliminating a potential $2.5 million upfront payment and the possibility of future milestone and royalty payments that were contingent on the option being exercised. The decision was announced on December 19, 2025, and it removes a significant revenue opportunity that Evaxion had been counting on for the near term.
The loss of the EVX‑B2 option does not affect Evaxion’s current cash runway, which the company says extends to the second half of 2027. The company also received a $7.5 million cash payment from MSD when the company exercised its option on the related EVX‑B3 candidate, which carries a separate potential of up to $592 million in milestone and royalty payments. The $592 million figure belongs to EVX‑B3, not EVX‑B2, and the $2.5 million payment was a contingent amount that would have been paid only if the option had been exercised.
Evaxion’s EVX‑B2 program has shown promising pre‑clinical results and is being advanced in collaboration with Afrigen Biologics on an mRNA platform. With MSD’s decision, Evaxion will seek a new partner to continue development, which may delay additional funding and market entry for the candidate. Despite this setback, the company’s broader pipeline—including the EVX‑B3 deal and other candidates such as EVX‑01 and EVX‑04—remains a key driver of future growth.
CEO Helen Tayton‑Martin said the company remains committed to the EVX‑B2 program, noting that the data generated to date are encouraging and that the loss of the MSD partnership does not impact the company’s cash runway. She added that Evaxion will begin the search for a new licensing partner for EVX‑B2 immediately.
The decision underscores the importance of Evaxion’s AI‑driven immunology platform and its ability to attract large partners, but it also highlights the risk of relying on a single partner for a critical program. Investors will likely view the event as a short‑term funding challenge that is offset by the company’s strong cash position and the upside potential of its other pipeline assets.
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