EVLO - Evelo slumps ~40% as eczema drug program abandoned after trial fails; cuts staff

2023-04-26 08:25:10 ET

Evelo Biosciences ( NASDAQ: EVLO ) said it will stop development of EDP1815 in atopic dermatitis (eczema) after the drug failed to meet the main goal in the fourth group of a phase 2 trial.

The trial's first three groups had also not met their main goals  following which the company had announced cost-saving initiatives, including workforce reductions, in February.

EDP1815-207 trial did not meet the main objective of the proportion of patients who achieved at least a 50% improvement from baseline in Eczema Area and Severity Index (EASI) score, an EASI-50 response, compared to placebo at week 16.

About 37.9% of patients on EDP1815 saw EASI-50 response or greater, compared to 44.7% on placebo in the fourth cohort.

The company now plans to focus its resources on developing extracellular vesicles (EVs). Data from a phase 2 trial of  EDP2939 in moderate psoriasis is expected in early Q4 2023.

"Given these results, we will cease further development of EDP1815 in atopic dermatitis, following a wind-down of the study. We will focus resources on the next generation extracellular vesicle (EV) platform and on EDP2939, our first EV candidate, currently in a Phase 1/2 study in psoriasis," said Evelo CEO Simba Gill.

Gill added that the company is reducing its workforce to save costs.

EVLO -42.28% to $0.086 premarket April 26

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