Evaxion slides after Merck opts out of gonorrhea vaccine licensing agreement

Shares of Denmark-based drug developer Evaxion EVAX.O fall 9.4% to $5.21

Says Merck & Co MRK.N will not exercise its option to license Evaxion's experimental gonorrhea vaccine, EVX-B2, leaving EVAX with global rights to the program

Evaxion says it will look for another potential licensing partner

Earlier this year, Merck exercised its option on a separate Evaxion vaccine candidate, EVX-B3, under a deal that could bring Evaxion up to $592 million in milestone payments plus royalties

Evaxion added that Merck's decision does not affect its cash runway, which extends into H2 2027

Including session moves, EVAX up 25.4% YTD