The Evelo Biosciences Inc (NASDAQ: EVLO) stock price soared 330.5% after investors got wind of the patent it had been awarded by The United States Patent and Trademark Office (USPTO) regarding its work on Probiotic and prebiotic compositions.
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The patent number US 11,672,834 B2 is titled “Probiotic and prebiotic compositions, and methods of use thereof for modulation of the microbiome”. It recognises Evelo Biosciences’ innovative work developing compositions and methods for modulating the microbiome.
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Today’s rally is a late reaction to the patent award, which took place on June 13, 2023, a few days ago, yet investors were unaware of the same. The move higher was also driven by the massive investor interest in the company since over 38.99 million EVLo shares had changed hands at the time of writing.
Evelo had initially filed for the patent on March 26, 2021, with the verification and award of the patent taking a little over two years. The US Patent Office also gave the inventors of the patented methods credit for their role in discovering the new methods.
The last significant announcement from Evelo Biosciences was on April 26, 2023, when it gave some updates on its clinical trials, including topline data from the fourth cohort of the EDP1815 Phase 2 trial in atopic dermatitis, which did not meet the primary endpoint.
The clinical updates triggered a further decline in Evelo’s share price. Hence, seeing the company’s shares surge higher by such a massive margin following the patent award is refreshing. Following the disappointing phase 2 clinical trial data, the company abandoned the project.
However, Evelo Biosciences chose to focus on developing extracellular vesicles (EVs), the first EV candidate, EDP2939, was in a Phase 2 moderate psoriasis study, which was fully enrolled. Topline data from the study is anticipated in early Q4 2023.
It remains to be seen whether today’s rally higher will translate into a sustained uptrend for EVLO stock, which could keep rising. However, we are more likely to get a pullback over the coming days than an extended rally.
*This is not investment advice.
Evelo Biosciences (EVLO) stock price.
The Evelo Biosciences (EVLO) stock price soared 330.52% to trade at $0.3569, from Thursday’s closing price of $0.0829.
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