Evelo restructures second-quarter finances to carry drug candidate through phase 2 trial

Key takeaways:

• Evelo’s psoriasis drug candidate, EDP2939, is currently being evaluated in a phase 2 trial.
• A readout of the trial’s top line data is anticipated early in the fourth quarter of 2023.

Evelo Biosciences announced that it has accumulated enough financial resources to take its psoriasis drug candidate past the phase 2 clinical readout, according to the company’s second-quarter 2023 financial results.

“With our recent financing combined with the restructuring and reduction of our debt, we now have the financial resources to take us past the phase 2 clinical readout of EDP2939 and into the first quarter of 2024,” Simba Gill, PhD, CEO of Evelo, said in the press release.

EDP2939 is a next generation product candidate for the treatment of psoriasis. According to Gill, EDP2939 has the potential, if approved, to be effective, safe, well tolerated and affordable.

The ongoing phase 2 trial evaluating the drug is fully enrolled with an anticipated top line data readout date set for early in the fourth quarter of 2023, according to the press release.

The company’s other financial news included the completion of a private placement in July which resulted in gross proceeds of approximately $25.5 million. After a debt agreement restructuring with Horizon Technology Finance Corporation, Evelo also paid down $5 million of its debt and converted another $5 million from debt to equity.

Evelo’s net loss was $21.1 million in the second quarter, a significant decrease compared with the $30.6 million net loss in the same quarter of last year.