Evommune (Evommune (EVMN)) had a rough Monday. The clinical-stage biotech announced that its investigational drug EVO756 failed to hit the primary endpoint in a mid-stage study for chronic spontaneous urticaria (CSU)—a fancy name for a condition that causes random, itchy hives and swelling that just won't quit. The stock promptly dropped 36.3% to $16.04.
The trial enrolled 160 patients with moderate-to-severe CSU that wasn't controlled by antihistamines. The goal was to measure the change in the Urticaria Activity Score over seven days (UAS7) at Week 12. None of the doses tested showed a statistically significant benefit over placebo. That's about as clear a failure as you can get, and Evommune is pulling the plug on EVO756 for CSU.
But it's not all doom and gloom. Eugene Bauer, Evommune's Chief Medical Officer, noted that EVO756 had previously shown positive Phase 2 data in chronic inducible urticaria and clear target engagement in Phase 1. Still, he acknowledged that the lack of efficacy at Week 12 in this study means the company won't pursue CSU further.
CEO Luis Peña struck an optimistic tone, saying, "While we are disappointed with the trial results in this indication, we continue to believe that modulation of MRGPRX2 represents a new potential therapeutic option to reduce inflammation and provide rapid relief of symptoms." He added that the company is on track to report top-line Phase 2b data for EVO756 in atopic dermatitis (AD) in the third quarter of 2026. They've also started screening for a Phase 2b trial of EVO756 in migraine prophylaxis, with patient dosing expected to start soon.
Peña also highlighted EVO301, an IL-18BP fusion protein, which recently showed positive Phase 2a proof-of-concept data in AD. "We look forward to moving the program into a robust Phase 2b AD trial," he said. And with a strong cash position funding operations through 2028, the company believes it can execute on key milestones.
William Blair analyst Matt Phipps downgraded Evommune from Outperform to Market Perform on Monday. He acknowledged that EVO301 has strong proof of concept in AD and could be a major value driver with blockbuster potential. But the Phase 2b trial for EVO301 isn't expected to start until mid-2027, with results in the second half of 2028. That's a long wait for investors who just watched a key program implode.
For now, Evommune's pipeline has some irons in the fire, but Monday's news is a stark reminder that biotech investing is a high-stakes game. The stock's 36% haircut reflects the market's disappointment, but the company's cash runway and other programs offer a glimmer of hope—if they can deliver.
