The Evelo Biosciences Inc (NASDAQ: EVLO) stock price soared 86.1% despite yesterday’s clinical updates saw its stock price fall 32.9%. Today’s rebound can be attributed to a shift in investor sentiment as busters stepped in and bought Evelo shares despite yesterday’s disappointing trial results.
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The rally in the EveloBiosciences stock is impressive and looks like a short squeeze as retail investor interest in the company’s stock has risen significantly. Over 7.5 million Evelo shares had changed hands at writing as retail investors bought the stock in large numbers. Evelo’s low stock price makes it easy for investors to buy it.
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Yesterday, Evelo Biosciences released disappointing topline clinical data from the fourth cohort of its EDP1815 Phase 2 clinical trial in atopic dermatitis, which did not meet the primary endpoint as described in the study guidelines.
The disappointing results left the company with no choice but to abandon the atopic dermatitis clinical trial and focus on developing the next-generation extracellular vesicle (EV) platform. The firm will now focus on EDP2939, its first EV candidate, in a Phase 1/2 clinical study in psoriasis.
Simba Gill, PhD, Evelo Biosciences CEO, said: “In the fourth cohort of the study of EDP1815 in atopic dermatitis, consistent with the first three cohorts, the primary endpoint was not met. The primary endpoint was the proportion of patients who achieved an EASI-50 response at week 16,”
Adding:
“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 EDP2939, our first EV candidate, currently in a Phase 1/2 study in psoriasis.”
Dr Gill continued: “In preclinical studies, EVs have shown substantially more potent activity than EDP1815. We believe that this, together with our previously reported positive Phase 2 clinical data in psoriasis with EDP1815, supports the potential of EDP2939, if approved, to be an attractive and unique foundational oral treatment to address all stages of psoriasis and other Th1/Th17 driven inflammatory diseases.”
*This is not investment advice.
Evelo Biosciences (EVLO) stock price.
The Evelo Biosciences (EVLO) stock price rallied 86.10% premarket to trade at 0.1861, from Wednesday’s closing price of $0.1000.
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