Evelo Biosciences shares are trading lower after the company reported the primary endpoint in its Phase 2 clinical study with EDP2939 in moderate psoriasis was not achieved. The company also initiated a process to explore strategic alternatives.
Portfolio Pulse from Benzinga Newsdesk
Evelo Biosciences' shares are trading lower after the company reported that the primary endpoint in its Phase 2 clinical study with EDP2939 in moderate psoriasis was not achieved. The company is also exploring strategic alternatives.
October 17, 2023 | 2:23 pm
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Evelo Biosciences' stock price is expected to decrease in the short term due to the failure of its Phase 2 clinical study with EDP2939 in moderate psoriasis.
The failure of a clinical study often leads to a decrease in the stock price of a biotech company as it indicates a setback in the company's product pipeline. This is particularly relevant for Evelo Biosciences as the failed study was in Phase 2, a critical stage in drug development. The company's decision to explore strategic alternatives also suggests uncertainty about its future direction, which could further impact the stock price.
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