Zacks Small Cap Research – EVAX Uses AI Platform to Generate Positive Treatment Data – Technologist

By Brad Sorensen, CFA

NASDAQ:EVAX

READ THE FULL EVAX RESEARCH REPORT

Evaxion (NASDAQ:EVAX) is a clinical stage company that is making AI useful in the current environment by using the technology to develop new cancer-fighting vaccines. The company notes that it has demonstrated that it can identify, through the company’s AI models, novel targets within days, rather than the traditional years it commonly takes with standard drug discovery methods. The use of AI also allows the company to decrease the risk of failure as the technology filters out those results that may result in low efficacy or unacceptable toxicity.

The company announced that its treatment, EVX-B2, which is a vaccine candidate in eliminating gonorrhea bacteria by triggering a targeted immune response, demonstrated positive pre-clinical data. The data, according to the company, provided “strong” Proof-of-Concept for the mRNA-based treatment. Following the announcement, CEO Christian Kanstrup commented, “In the case of gonorrhea, no vaccine exists today, so we have an opportunity here to develop a potentially groundbreaking treatment. Further, the data confirms that our platform is delivery modality agnostic, which is a very strong value proposition towards existing and new partners.”

Additionally, the company announced topline data from a one-year interim analysis of the ongoing Phase 2 trial of EVX-01—the company’s personalized peptide-based cancer vaccine. According to the company, the treatment is intended to be a first-line treatment of multiple solid advanced solid cancers. The interim data on patients with advanced melanoma showed that the treatment had a 69% Overall Response Rate (the percentage of patients that had a partial or complete response to a treatment). Additionally, vaccine-induced T cells were detected in all patients and, according to the company, a significant correlation between clinical response and the AI-Immunology predictions was observed, which the company believes supports the predictive power of the platform.

We believe Evaxion is at an inflection point and these announcements indicate to us that the company is turning the corner, and we are starting to see the beginnings of what we believe will be a flow of positive data. Moving from a cash burn company, as we’ve discussed, to one that is at least cash neutral, while seeing important trial results that validate the company’s process and AI technology should induce investors to start paying attention. If events for Evaxion continue to proceed along the lines as we’ve seen to this point, EVAX should start to rise in concert with the improving prospects. We urge investors with a modestly higher risk tolerance to take a look at EVAX at the current time, before even more potential market-moving news gets announced.

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