Evommune (NYSE: EVMN) got a nice bump today after the company announced positive top-line results from its Phase 2a proof-of-concept trial in adults with moderate-to-severe atopic dermatitis. 

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If you’re unfamiliar, this is a chronic inflammatory skin condition that affects millions and remains underserved by existing therapies.

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The randomized, double-blind, placebo-controlled study for “EVO301” met its primary efficacy endpoint at Week 12 and produced rapid, statistically significant improvements in severity scores across multiple time points.

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Specifically, patients receiving EVO301 achieved a 33% placebo-adjusted improvement on the Eczema Area and Severity Index (EASI) at 12 weeks, and 23% achieved clear or nearly clear skin, compared with 0% in the placebo group. 

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To be sure, this is a meaningful, measurable clinical impact in this disease setting.  And it’s why the market rewarded the stock today. Check out this chart …

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Looking ahead, the company is already planning a Phase 2b dose-ranging trial to explore optimized dosing and formulation and may investigate additional indications beyond atopic dermatitis (including inflammatory diseases such as ulcerative colitis), where EO301 could hold promise.

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For biotech stocks, clinical catalysts typically set the stage for progress.  And this is exactly the kind of event that can act as a valuation inflection point, moving a story from “early development” to one with credible evidence of clinical benefit in humans. 

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That, dear reader, is the moment when Wall Street starts taking biotechs seriously.

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While Evommune still carries risk, these latest results are certainly positive enough to placate investors who have been patiently waiting for some action on this stock. 

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You can read more about Evommune’s progress here. 

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