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Evelo Biosciences: What's The Near-term Catalyst?

pharma 030317 01may19 lt

The clinical trial results of a drug company can impact its stock price depending upon the outcome - and more so if it is a small-/mid-cap biopharma stock.

Axsome Therapeutics Inc. (AXSM) was trading around $9 when we alerted readers to the stock on March 11, 1019, about its then pending clinical trial catalyst. Now the stock trades around $17, thanks to the positive results from its phase II trial of AXS-05 in smoking cessation.

A keen understanding of the target timeline of the clinical trials will help trade biotech stocks with some margin of safety around the catalyst events.

Another stock worth watching this quarter is Evelo Biosciences Inc. (EVLO).

Evelo Biosciences is a clinical-stage company pioneering the development of monoclonal microbials to treat all stages of major chronic diseases and cancer.

The Company has three drugs in clinical development:

-- EDP1066 under phase 1b trial in Atopic Dermatitis or Psoriasis
-- EDP1815 under phase 1b trial in Atopic Dermatitis or Psoriasis
-- EDP1503 under phase 1/2 trials in colorectal carcinoma, Triple-negative breast cancer, and PD-1 relapsed cancers. EDP1503 is also under a phase IIa investigator-sponsored study by the University of Chicago in the indication of melanoma.

The Company expects to report topline data from the phase 1b trial of EDP1066 in Atopic Dermatitis or Psoriasis this quarter (2Q, 2019).

The topline data from the phase 1b trial of EDP1815 6 in Atopic Dermatitis or Psoriasis is expected in the second half of this year.

The Company is slated to report its first quarter financial results and discuss recent business updates tomorrow. (May 2, 2019).

Based on yesterday's closing price of $8.39, shares of Evelo are down nearly 35% year-to-date. The stock has traded in a range of $6.51 to $16.75 in the last 1 year.

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