Why Is Psoriasis Company Evelo Biosciences Stock Plunging Today?
Portfolio Pulse from Vandana Singh
Evelo Biosciences Inc (NASDAQ:EVLO) announced that it did not achieve the primary endpoint in its Phase 2 clinical study with EDP2939 in moderate psoriasis. The company will cease the development of EDP2939 and is considering strategic alternatives, including partnering EDP1815 and the SINTAX platform. Following the news, EVLO shares dropped 48.3%.
October 17, 2023 | 1:49 pm
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Evelo Biosciences' stock price plunged following the announcement of the failure of its Phase 2 clinical study with EDP2939. The company's decision to cease the development of EDP2939 and consider strategic alternatives could further impact the stock price.
The failure of a clinical study is a significant setback for any biotech company, as it represents a loss of potential future revenue and a waste of the resources invested in the study. This news directly impacts Evelo Biosciences and is the primary reason for the sharp drop in the company's stock price.
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