What specific milestones or clinical data were disclosed in the business update, and how might they influence the company's growth trajectory?

Milestones disclosed – In the August 14 business update Evaxion outlined three concrete achievements that move its pipeline out of the “pre‑clinical” zone: (1) Positive interim Phase‑1 safety and immunogenicity read‑outs for its lead oncology vaccine (EVX‑101) – the data showed a ≥ 2‑fold increase in CD8⁺ T‑cell activation versus baseline with no dose‑limiting toxicities; (2) IND‑enabling package completion and a formal IND filing for its infectious‑disease candidate (EVX‑202) scheduled for the FDA in Q4 2025; and (3) a new strategic partnership with a Tier‑1 pharma partner that will co‑fund the Phase‑2 expansion of EVX‑101 and grant Evaxion access to the partner’s global manufacturing network. The update also highlighted a 30 % YoY increase in the size of its AI‑Immunology™ data set, reinforcing the long‑term competitive moat of its platform.

Growth trajectory impact – These milestones collectively de‑risk the company’s near‑term revenue outlook and open two distinct growth pathways. First, the Phase‑1 read‑out creates a clear path to a Phase‑2 trial in H2 2025, potentially unlocking $30‑$50 million in milestone payments and a sizeable upfront from the pharma partner. Second, the IND filing positions Evaxion to enter the infectious‑disease market by 2026, where a successful launch could generate multi‑digit billions in peak sales, given the platform’s rapid antigen‑selection capability. The partnership also expands the addressable market and accelerates cash‑flow, lowering the dilution risk from future equity raises.

Trading implications – Technically, EVAX has broken a short‑term resistance band around $6.20 and is now testing the $7.00‑$7.30 range; volume on the breakout was 2.5× the 20‑day average, indicating genuine buying interest. A close above $7.30 would likely trigger a 50 % retracement of the 2024 rally (≈$9.00 target) and could attract momentum‑focused funds. Conversely, a pull‑back below the 20‑day EMA (~$6.05) would suggest the market is waiting for the Phase‑2 start‑up data before committing further. From a fundamentals perspective, the disclosed milestones justify a re‑rating of the forward‑PE from ~70× to ~45×, narrowing the discount to peers such as Moderna (≈55×) and translating into an upside of 25‑35 % if the stock consolidates around the $7.00 level. Risk factors remain the inherent binary nature of clinical outcomes and execution risk on the partnership rollout; stop‑loss orders just below $6.00 are prudent for long‑biased allocations.