BUZZ-Evommune tumbles after eczema drug fails mid-stage trial goal

Shares of Evommune fell 16.7% to $10.89 premarket after the drug developer said late Tuesday it would not advance its experimental skin disease drug after it failed to meet the main goal in a mid-stage trial.

Its drug, EVO756, did not show a meaningful percent change in a scale that measures the severity of eczema when tested in patients with atopic dermatitis (AD).

AD is a chronic, inflammatory skin condition that causes dry, red, itchy and irritated patches of skin.

The company said it will continue to develop EVO756 for migraine prevention.

RBC said: "Failure of '756 in AD is disappointing, though after the lack of signals in the chronic spontaneous urticaria data, we believe expectations were low going in, and we had assumed a relatively niche potential opportunity for the drug upon success".

As of last close, the stock was down 23.6% year to date.