Evaxion Biotech A/S saw its shares surge more than 27% Thursday after announcing that Merck & Co. has exercised its option to license the Danish biotech's vaccine candidate EVX-B3. The Nasdaq-listed stock climbed to $4.20, gaining $0.79 from its previous close of $3.30, with trading volume spiking to 71.4 million shares—far exceeding its average volume of approximately 92,000 shares.

The licensing agreement includes a $7.5 million upfront payment to Evaxion, with potential development, regulatory and sales milestone payments reaching up to $592 million. Merck, known as MSD outside the United States, will also pay royalties on net sales and assume full responsibility for all future development costs of the preclinical vaccine candidate. The deal extends Evaxion's cash runway into the first half of 2027.

EVX-B3 targets an undisclosed pathogen associated with repeated infections, increasing incidence and serious medical complications. Both companies have maintained secrecy around the specific disease target, noting only that no vaccines currently exist for the condition. The candidate was discovered using Evaxion's AI-Immunology platform, which identifies novel targets that might otherwise remain undiscovered.

The collaboration represents a significant validation of Evaxion's technology platform, according to company executives. "This has significant financial value for us, but equally important is the massive validation of our AI-Immunology platform by MSD, the world leader in vaccine development and commercialization," said Birgitte Rønø, Evaxion's chief scientific officer and interim CEO. The companies have also extended the evaluation period for another vaccine candidate, EVX-B2, which targets gonorrhea, with a licensing decision expected in the first half of 2026.

Finnair is gradually restoring its Airbus A321 fleet to service after an uncertified cleaning procedure forced the grounding of eight aircraft. The airline confirmed that seat covers were washed with water, a method not properly certified to ensure fire protection standards were maintained. This safety concern prompted the removal of the affected aircraft from service, leading to operational disruptions across Finnair's European network.

The situation began improving over the weekend as Finnair started installing new seat covers on the grounded aircraft. The first A321 returned to service on Sunday, operating a flight from Helsinki to Rhodes. However, seven aircraft remain out of service with no confirmed timeline for their full return. The A321s typically seat approximately 200 passengers and are crucial for Finnair's European route operations.

The grounding has resulted in significant passenger disruptions, with Finnair implementing extensive rebooking procedures. On Sunday alone, approximately 460 passengers were moved to different flights due to aircraft downgrades. The airline has prioritized high-frequency routes such as Helsinki-Stockholm and Helsinki-London, ensuring alternative options are available. In some cases, Finnair has used smaller replacement aircraft and offered incentives for volunteers to switch flights.

To manage the capacity shortfall, Finnair has wet-leased two aircraft with crews from Danish carrier DAT since Wednesday. While flight cancellations have decreased to single digits in recent days, with some days passing without any cancellations, the airline acknowledges that irregularities may continue through the coming week. Finnair is providing accommodation and compensation to affected passengers in accordance with EU air passenger rights regulations as it works to fully resolve the operational challenges.