Why Is EVMN Stock Down 13% After-Hours?

Evommune said on Tuesday that its mid-stage trial involving its experimental eczema pill EVO756 failed a mid-stage study.

• In June, EVO756 failed in a trial evaluating it for the treatment of chronic hives. 
• The company is now testing the drug as a possible migraine preventative. 
• Chief Executive Luis Peña said Evommune still wants to help eczema patients — through a different drug called EVO301.

Shares of Evommune (EVMN) slumped 13% after-hours on Tuesday after the company said its experimental eczema pill failed a mid-stage study and will not move forward in that disease.

The Palo Alto biotech’s investors had been waiting on the readout as a second chance for EVO756, an oral drug that already missed its main goal in chronic hives earlier this year in June. The stock had gained 7% in the regular trading session.

Trial Misses, Program Dropped In Eczema

The mid-stage study enrolled 121 adults with moderate-to-severe atopic dermatitis, a common form of eczema. Patients took one of several doses of EVO756 or a dummy pill for 12 weeks. The drug did not beat placebo on the study’s main measure of skin clearance, or on secondary goals, at any dose tested, the firm said.

Evommune said it will stop developing EVO756 for eczema. The medicine was generally well tolerated, with a safety picture in line with earlier studies.

“We are disappointed that this trial of EVO756 did not meet its primary endpoint, particularly given the need for new treatment options for patients suffering from AD,” Chief Medical Officer Eugene Bauer said.

The company will keep testing the same pill as a possible migraine preventive. That mid-stage study is already underway. Bauer said the safety results from the eczema trial support that next step.

A Different Eczema Bet

Chief Executive Luis Peña said Evommune still wants to help eczema patients — through a different drug. EVO301, an injectable protein that showed a positive mid-stage signal earlier this year, is now the company’s lead eczema program. The company plans a larger mid-stage trial for mid-2027.

Peña said the company has cash to fund operations into 2029 and will keep working across chronic inflammatory diseases. “This trial did not deliver the outcome we and the AD community were hoping for,” he said.

In late June, after the company announced its hives trial had failed, Martin Shkreli, the hedge-fund manager turned drug-company executive known as “Pharma Bro,” posted that he was going long EVMN on the drop and that it was a new position. His pitch was that the failed hives program was now out of the way and the remaining story was EVO301.

How Did EVMN Retail Traders React?

On Stocktwits, retail sentiment around EVMN stock jumped from ‘neutral’ to ‘bullish’ over the past 24 hours, while message volume increased from ‘normal’ to ‘high’ levels.

EVMN stock has lost 24% year-to-date. 

For updates and corrections, email newsroom[at]stocktwits[dot]com.