COPENHAGEN - Evaxion Biotech A/S (NASDAQ: EVAX), a clinical-stage company focused on developing artificial intelligence-powered vaccines, has announced positive interim results from its phase 2 trial of EVX-01, a personalized cancer vaccine. The trial, which investigates the vaccine in combination with KEYTRUDA® (pembrolizumab), has shown a 69% Overall Response Rate (ORR) in patients with advanced melanoma.
The data, presented at the European Society for Medical Oncology (ESMO) Congress in Barcelona, Spain, over the weekend, indicates that 15 out of 16 patients experienced reductions in their tumor target lesions. Additionally, the vaccine triggered a targeted immune response in 79% of the cases, which is notably high compared to other approaches.
EVX-01 is designed using Evaxion's AI-Immunology™ platform to target neoantigens, which are unique to each patient's tumor, thereby enhancing the immune system's ability to fight cancer. The positive correlation between the platform's predictions and the immune response observed in patients, with a p-value of p=0.00013, suggests a robust predictive capability of the AI technology.
The commercial potential of EVX-01 is significant given the rising global incidence of melanoma, which is projected to reach 510,000 new cases by 2040. With the melanoma treatment market expected to grow to $7.4 billion by 2029, EVX-01 could represent a considerable advancement in the field.
Evaxion's CEO, Christian Kanstrup, expressed optimism about the vaccine's clinical profile and potential to transform cancer treatment. The company will further discuss the data at a webinar on Monday, featuring Professor Georgina V. Long, a key opinion leader and principal investigator of the trial.
EVX-01's development is part of Evaxion's broader commitment to addressing unmet medical needs in cancer, bacterial diseases, and viral infections through its AI-Immunology™ platform.
This report is based on a press release statement and presents the latest findings from Evaxion's ongoing research into innovative cancer treatment options. Final results from the phase 2 trial are anticipated in the third quarter of 2025.
In other recent news, Evaxion Biotech reported significant advancements in its clinical trials and research. The company's phase 2 trial of EVX-01, a melanoma treatment, showed promising interim results, with 69% of patients achieving an objective clinical response. Furthermore, the company's AI-Immunology™ platform demonstrated its versatility, with promising pre-clinical results for the EVX-B2 mRNA vaccine candidate targeting gonorrhea.
These developments are part of Evaxion's ongoing commitment to leveraging its AI-Immunology™ platform to address various health challenges. The company's CEO, Christian Kanstrup, expressed optimism about the potential of EVX-01 as a personalized cancer treatment and the predictive capabilities of their AI platform.
Evaxion's financial outlook also appears positive. In its Q2 earnings call, the company reported progress in its EVX-01 program and is hopeful about generating $14 million in business development income. Current cash reserves are expected to fund operations until early 2025. Mads Kronborg has been introduced as the new VP of Investor Relations and Communication, reinforcing the company's focus on multi-partner collaborations and the pursuit of key milestones.
In conclusion, these recent developments underscore Evaxion's commitment to exploring and expanding the potential of its AI-Immunology™ platform, as well as its determination to maintain financial stability and progress in the face of global uncertainties.
InvestingPro Insights
Evaxion Biotech A/S (NASDAQ: EVAX) has recently made headlines with promising results from its phase 2 trial of EVX-01. As investors and analysts assess the company's prospects, several key metrics and insights from InvestingPro provide a deeper understanding of its financial health and market performance.
According to InvestingPro data, the company's market capitalization stands at a modest $16.73 million. This relatively small market cap reflects the early stage of the company and its focus on developing innovative treatments with significant potential for growth. Despite the positive trial results, analysts highlight that Evaxion is quickly burning through cash, which is a common scenario for clinical-stage biotech companies investing heavily in research and development. This is further substantiated by the company's negative P/E ratio, which currently stands at -0.77, indicating that it is not yet profitable.
Moreover, the stock has experienced a notable decline over the last week, with a 1-week price total return of -7.69%. This volatility may be of interest to investors looking for short-term trading opportunities, especially considering that Evaxion's stock price often moves in the opposite direction of the market, as noted in one of the InvestingPro Tips.
For those considering long-term investment, it's important to note that while Evaxion operates with a moderate level of debt and its liquid assets exceed short-term obligations, analysts do not anticipate the company will be profitable this year. Additionally, the stock is trading at a high revenue valuation multiple, which suggests that the market may be pricing in future growth expectations.
Investors seeking a comprehensive analysis of Evaxion's financials and market performance can find additional InvestingPro Tips on the InvestingPro platform, which currently lists 11 more tips for a more informed investment decision.
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