Evelo Biosciences hits record low after eczema drug fails study

Evelo Biosciences

01/02/2023 16:08

(Updates)
    ** Shares of Evelo Biosciences Inc  EVLO.O  fall as much as
27.9% to hit record low of $0.75 
    ** Stock set for worst day since July 2021, if losses hold
    ** Co says its experimental drug, EDP1815, failed to meet
the main goal of a mid-stage trial testing it as a treatment for
atopic dermatitis, or eczema
        ** Data from first three groups in the study showed
unusually high placebo response rate - company
  
        ** Evelo expect to report data from fourth cohort in Q2,
with results to determine path forward for the drug in atopic
dermatitis  
  
        ** EVLO is designing a late-stage study to test drug's
efficacy in treating psoriasis, after considering the feedbacks
of different regulators
  
    ** Co adds that it has implemented cost-saving initiatives 
due to challenging macro-environment, which includes reduction
in its workforce 
    ** Board of directors has asked Chief Executive Simba Gill,
who was going to step down, to continue in his role - EVLO
    ** Stock has declined 85% in last 12 months
 (Reporting by Raghav Mahobe and Aditya Samal)
 ((Raghav.Mahobe@thomsonreuters.com;))