Evommune Inc (NYSE: EVMN) soared by nearly 75 per cent in premarket trading on Feb. 10. Stock shot up from US$17 to nearly US$30 after the biopharma operator shared strong early results from a Phase 2a trial of its drug EVO301.
This therapeutic is an emerging treatment for moderate-to-severe eczema (atopic dermatitis) in adults. In the study that produced the positive findings, a total of 70 patients participated.
The company’s key finding was that those who received EVO301 saw a 33 per cent higher rate of decline in their eczema severity scores after 3 months than those who got the placebo. Additionally, 23 per cent of trial participants who took the drug had almost perfectly clear skin after that duration while none of the patients who were administered the placebo (via IV) did.
No serious side effects of any kind were reported during the assessment.
Analysts have viewed these results favourably. Evercore Inc‘s (NYSE: EVR) (FRA: QGJ) equity research and advisory arm Evercore ISI upped its share target by US$15 to US$55 following the development while giving an Outperform rating. Moreover, H.C. Wainwright boosted its target by US$30 to US$65 while maintaining its “Buy” stance on the stock.
Evommune is now planning a larger study on that skin condition treatment that will examine a shot-under-the-skin (subcutaneous injection) variation rather than intravenous.
While Evommune’s drug provided quick relief in the recent analysis, the company was not the only one to see its shares rally on the markets due to positive eczema treatment data this week.
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Nektar gains steam from long-term data release
Tuesday saw Nektar Therapeutics (NASDAQ: NKTR) (FRA: ITH0) stock climb by 51 per cent as the company dropped new long-term data on its eczema therapeutic rezpegaldesleukin (called rezpeg). It works by boosting the body’s production of helpful immune cells.
Nektar’s Phase 2B trial, designated as REZOLVE-AD, saw 393 patients participate. During a 52-week period of treatment, between 71 to 83 per cent of the participants observed a minimum of 75 per cent improvement in their eczema scores.
Many of these, 63 to 85 per cent, had clear or almost completely clear skin by the conclusion of that period. Only mild side effects were reported during the study, such as minor injection site reactions.
Nektar is now scheduling Phase 3 trials to begin mid-way through this year and is shooting to file for approval of the drug in 2029.
These two companies intend to compete with the world’s leading eczema therapeutic Dupixent, produced by Sanofi SA (NASDAQ: SNY) and Regeneron Pharmaceuticals Inc (NASDAQ: REGN) (ETR: RGO), but in different ways.
Evommune’s drug works by blocking a specific protein and could potentially work efficiently as a single shot. On the other hand, Nektar’s rezpeg focuses on long-lasting control with shots administered every few months.
Evommune is a newer company that recently went public. Its market value is sitting around US$900 million and the company has a cash balance of approximately US$76 million. Meanwhile, Nektar is a more established biopharma operator with a valuation of US$1.1 billion. Its cash holdings total around US$270 million.
The dual rally highlights investor excitement about novel options for treating one of the world’s most prevalent skin ailments.
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