Evaxion Biotech (EVAX) Q2 2024 earnings summary

Executive summary

• Advanced multiple business development discussions and multi-partner business model, with strong interest in both AI-Immunology platform and pipeline candidates.

• Achieved positive phase 2 immune data for EVX-01, with a 67% objective response rate in phase 1 and all patients showing T-cell responses in phase 2; data presented at ASCO, with one-year clinical data readout expected at ESMO in September 2024.

• Several milestones on track for 2024, including preclinical proof-of-concept for EVX-B2-mRNA, launch of EDEN model 5.0, and other program updates in late 2024.

• Strengthened AI-Immunology platform with improved predictive capabilities, positive patent feedback, and presentation of updated EvaxMHC building block at major conferences.

Financial highlights

• Cash and cash equivalents stood at $8 million as of June 13, 2024, and $8.0 million as of June 30, 2024, expected to fund operations into February 2025, or March 2025 if all pre-funded warrants are exercised.

• Net loss of $6.2 million for Q2 2024 ($0.12 per share), compared to $5.7 million ($0.21 per share) for Q2 2023.

• R&D expenses for H1 2024 were $5.6 million, down $1.2 million year-over-year; Q2 2024 R&D expenses were $2.8 million.

• G&A expenses for H1 2024 were $3.6 million, down $1.7 million year-over-year; Q2 2024 G&A expenses were $2.0 million.

• Total equity at $1.3 million as of June 30, 2024, with total assets of $15.2 million and total liabilities of $14.0 million.

Outlook and guidance

• Ambition to generate $14 million in business development income or cash in 2024, though timing of accounting recognition may extend into 2025.

• Existing cash expected to fund operations into February 2025; further business development income or funding required to address going concern risk.

• Lower R&D and G&A spending expected in H2 2024, with cash outflows skewed toward H1.

• Multiple milestones expected in H2 2024, including clinical and preclinical data readouts and technology launches.