Evelo Biosciences (NASDAQ:EVLO) stock is on the rise Thursday after the company said it’s shifting focus toward extracellular vesicle (EV) development.
With this news, Evelo Biosciences will put a greater focus on EDP2939, which is its first EV treatment. EDP2939 is currently in a Phase 1/2 study in psoriasis. Early results have already shown the treatment is well tolerated.
Evelo Biosciences notes that it already has patients signed up for the second Phase of the clinical trial. This has it expecting data from that trail during the fourth quarter of 2023. If all goes well, that could lead to a Phase 3 trial sometime next year.
Why Is EVLO Switching Focus?
Evelo Biosciences is giving its attention to EDP2939 following results from a clinical trial testing EDP1815. This sought to determine the effectiveness of the treatment in atopic dermatitis. The clinical trial failed to meet its primary endpoint.
Simba Gill, Ph.D., CEO of Evelo Biosciences, said the following about the news:
“We are prioritizing investment in the EV platform and in EDP2939 clinical development and are reducing our workforce to save costs. I would like to express my sincere thanks to the patients and clinicians involved in our studies and to our team for advancing our programs.”
With this news comes heavy trading of EVLO stock as some 11 million shares change hands. That’s a massive surge compared to the company’s daily average trading volume of about 379,000 shares.
EVLO stock is up 78.2% as of Thursday morning.
Investors will want to stick around for more of the most recent stock market news!
We’ve got all of the latest details moving stocks on Thursday! That includes the biggest pre-market stock movers this morning, as well as the latest on U.S. debt, and more. You can catch up on all of this news at the following links!
More Thursday Stock Market News
- Today’s Biggest Pre-Market Stock Movers: 10 Top Gainers and Losers on Thursday
- How Much Is the U.S. in Debt? What Does It Mean to Raise the Debt Ceiling?
- Why Is Crown ElectroKinetics (CRKN) Stock Up 120% Today?
On Penny Stocks and Low-Volume Stocks: With only the rarest exceptions, InvestorPlace does not publish commentary about companies that have a market cap of less than $100 million or trade less than 100,000 shares each day. That’s because these “penny stocks” are frequently the playground for scam artists and market manipulators. If we ever do publish commentary on a low-volume stock that may be affected by our commentary, we demand that InvestorPlace.com’s writers disclose this fact and warn readers of the risk.
Read More: Penny Stocks — How to Profit Without Getting Scammed
On the date of publication, William White did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
