Evelo Biosciences slumps on eczema drug failing study, job cuts

Evelo Biosciences

01/02/2023 13:03

** Shares of Evelo Biosciences Inc  EVLO.O  fall ~21% to
$0.82 premarket
    ** Co says its experimental drug, EDP1815, failed to meet
the main goal of a mid-stage trial testing it for treating
atopic dermatitis, or eczema
    ** Co adds that it has implemented cost-saving initiatives 
due to challenging macro-environment, which includes reduction
in its workforce 
    ** Data from first three groups in the trial showed
unusually high placebo response rate - company
    ** Expect to report data from 4th cohort in Q2 of this year,
results from this to determine path forward for EDP1815 in
atopic dermatitis - Evelo
    ** Evelo, however, expects a "clear path" for registration
trials for EDP1815 for treating skin disease, psoriasis
    ** EVLO shares down ~53% in the past six months
 (Reporting by Raghav Mahobe)
 ((Raghav.Mahobe@thomsonreuters.com;))