Evaxion Biotech (EVAX) Q1 2025 earnings summary

Executive summary

• Strong progress in business development, R&D, and financials in Q1 2025, with key milestones achieved and a busy second half anticipated.

• Achieved first two milestones for 2025, progressing lead asset EVX-01 in phase 2 trial with positive immune response data and trial extension dosed in May.

• Partnership with Merck (MSD) remains on track, with a potential $10 million milestone if options are exercised in H2 2025.

• Optimized AI-Immunology™ platform and advanced infectious disease vaccine candidate selection with expert panel guidance.

• Active participation in major scientific conferences has enhanced visibility and partner engagement.

Financial highlights

• Cash and cash equivalents rose to $17.8M (DKK 17.8 million) at March 31, 2025, from $6.0M at December 31, 2024, due to capital market activities.

• Operational cash burn estimated at ~$14M for 2025, with runway until mid-2026.

• Total equity at Q1 end was $10.3 million, a significant increase from end-2023 and from negative $1.7M at year-end 2024.

• Operating loss of DKK 3.9 million in Q1 2025, slightly improved from DKK 4 million in Q1 2024.

• Net loss of $1.6M (EPS $(0.01)) in Q1 2025, versus net income of $1.2M in Q1 2024, mainly due to lower financial income from derivative liability remeasurement.

Outlook and guidance

• Confident in achieving at least two new business development deals in 2025, though macro risks are rising.

• Key H2 2025 milestones: Merck option decision, EVX-01 phase II two-year readout, selection of lead candidate for precision cancer vaccine, and addition of new infectious disease candidate.

• Cash runway extends beyond major upcoming milestones, potentially into 2027 if Merck options are exercised.

• Operational cash burn for 2025 expected at ~$14M, with strict cost control measures in place.