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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NEGATIVE IMPACT
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.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 100