Evommune, Inc. (NASDAQ:EVMN) shares are trading lower on Thursday on profit-taking after the stock soared around 70% on Wednesday.
On Tuesday, the company shared positive results from its Phase 2a trial evaluating EVO301 for treating moderate-to-severe atopic dermatitis.
EVO301 Trial Shows 33% Improvement in EASI
In the recent trial, Evommune reported a 33% placebo-adjusted improvement in the Eczema Area and Severity Index (EASI) at week 12, with 23% of patients achieving a score of 0 or 1 on the Investigator’s Global Assessment for Atopic Dermatitis.
The company plans to advance to a Phase 2b dose-ranging trial using a subcutaneous formulation of EVO301, while also exploring additional indications, including ulcerative colitis.
Analyst Raises Probability of Success With Blockbuster Potential
William Blair on Tuesday wrote, “We believe the results provide clear proof of concept for EVO301 in AD, an asset that we believe had little valuation reflected in Evommune’s share price…”
Analyst Matt Phipps noted that full details from the Phase 2a study at an upcoming medical meeting and additional clarity on the subcutaneous doses being advanced into a Phase 2b study will further elucidate the product profile and positioning of EVO301 in the large AD market.
The analyst has increased its probability of success for EVO301 to 51%, up from 29%, and increased the 2035 sales estimate to $1 billion, up from $760 million.
“We believe this could still prove conservative, particularly if
efficacy is demonstrated in other diseases, namely ulcerative colitis,” Phipps further added.
The stock is currently trading 5.1% below its 20-day simple moving average (SMA) and 2.7% below its 50-day SMA, suggesting some short-term weakness. Over the past 12 months, shares have decreased by 16.02% and are positioned closer to their 52-week lows than highs, reflecting a challenging year for the stock.
EVMN’s Strong Long-Term Trend Despite Volatility
The stock is trading 38.7% above its 20-day SMA and 45.3% above its 50-day SMA, indicating a strong longer-term trend despite recent volatility. Shares have decreased by 16.02% over the past 12 months and are currently positioned closer to their 52-week lows than highs, suggesting potential challenges ahead.
The RSI is at 69.29, which is considered neutral territory, while MACD is above its signal line, indicating bullish momentum. The combination of neutral RSI and bullish MACD suggests mixed momentum.
- Key Resistance: $33.00
- Key Support: $25.00
Analyst Consensus & Recent Actions:
The stock carries a Strong Buy Rating with an average price forecast of $44.17. Recent analyst moves include:
- HC Wainwright & Co.: Buy (Raises Target to $65.00) (Feb. 10)
- Oppenheimer: Initiated with Outperform (Target $42.00) (Jan. 22)
- Raymond James: Initiated with Strong Buy (Target $40.00) (Jan. 8)
EVMN Price Action: Evommune shares were down 3.62% at $27.43 at the time of publication on Thursday, according to Benzinga Pro data.
Photo via Shutterstock
Recent Comments