Evelo Biosciences slumps as EDP2939 disappoints

Shares USA-based clinical-stage biotech Evelo Biosciences (Nasdaq: EVLO) plummeted 59% to $1.20 yesterday, as it announced disappointing top-line results from its Phase II clinical study with EDP2939 in moderate psoriasis.

Evelo said that the study’s primary endpoint, the difference in the proportion of patients who achieved an outcome of a 50% improvement from baseline in Psoriasis Area and Severity Index (PASI) score (a PASI-50 response) between EDP2939 and placebo after 16 weeks of daily treatment, was not achieved.

The company is continuing to gather and analyze the study data, but it said that, based on these results, Evelo has initiated a process to explore strategic alternatives.