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Jun 30, 2023
Evelo Q2 2023 Earnings Report
Announced second quarter 2023 financial results and recent business highlights.
Key Takeaways
Evelo Biosciences reported a net loss of $21.1 million for the second quarter of 2023, with cash and cash equivalents at $7.6 million as of June 30, 2023. The company is on track for a top line read-out from their Phase 2 study in moderate psoriasis with EDP2939 early in the fourth quarter of 2023 and completed a $25.5 million private placement.
EDP2939 Phase 2 trial in moderate psoriasis is fully enrolled with topline data expected early Q4 2023.
Completed a $25.5 million private placement in July 2023.
Restructured and reduced secured debt with Horizon Technology Finance Corporation.
Cash and cash equivalents were $7.6 million as of June 30, 2023.
Evelo
Evelo
Forward Guidance
Evelo is on track for a top line read-out from their ongoing Phase 2 study in moderate psoriasis with EDP2939 early in the fourth quarter of 2023 and with their recent financing combined with the restructuring and reduction of their debt, they now have the financial resources to take them past the Phase 2 clinical readout of EDP2939 and into the first quarter of 2024.
Positive Outlook
- Phase 2 study with EDP2939 in moderate psoriasis is fully enrolled.
- Top line data readout for EDP2939 Phase 2 study expected in early Q4 2023.
- Completed a private placement in July 2023, resulting in gross proceeds of approximately $25.5 million.
- Restructured debt agreement with Horizon Technology Finance Corporation, paying down $5.0 million of existing debt and converting $5.0 million from debt to equity.
- Financial resources to take them past the Phase 2 clinical readout of EDP2939 and into the first quarter of 2024.
Challenges Ahead
- Incurred significant losses and are not currently profitable.
- Need for additional funding.
- Reliance on third parties and collaborators to conduct clinical trials.
- Unfavorable global economic or political conditions.
- Lengthy, expensive, and uncertain process of clinical drug development, including potential delays in regulatory approval.