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Merck discloses stake in Evaxion, shares rise on deal signal
Merck disclosed it holds 1,214,126 shares of Evaxion, and Argus later lifted its Merck price target to $145 from $130 with a Buy rating.
Merck & Company disclosed in a regulatory filing on August 10 that it holds 1,214,126 shares of Evaxion A/S, a micro-cap AI immunology firm listed on Nasdaq under EVAX. The filing followed Merck's September 2025 decision to exercise an option to in-license EVX-B3, Evaxion's discovery-stage vaccine candidate targeting an undisclosed bacterial pathogen.
The disclosure was followed by a move in Evaxion shares, which were up 2% to $3.17 in early trading, according to the report. Separately, Argus raised its price target on Merck on August 11 from $130 to $145, reiterating a Buy rating.
The article also contrasts the companies' financial profiles, noting Merck operates at mega-cap scale and reported Q2 2026 revenue of $16.6 billion, including $8.4 billion from KEYTRUDA and $588 million from WINREVAIR. It reported a GAAP net loss of $1.335 billion, tied to a temporary $5.7 billion R&D charge from acquiring Terns Pharmaceuticals, while also raising full-year sales guidance to $66.3 billion to $67.3 billion.
By comparison, Evaxion’s Q1 2026 results were described as consistent with a pre-revenue biotech model, with $0 quarterly revenue and a net loss of $3.6 million, or a $(0.50) loss per share. The report characterizes Evaxion’s cash needs as driven by clinical trial funding and development of its AI platform through capital raises, while positioning Merck’s stake and licensing of EVX-B3 as potential validation for the smaller company.
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