Shares of biotech stock Evelo Biosciences (NASDAQ:EVLO) collapsed in today’s trading session. This can be attributed to the company’s eczema treatment, which failed to meet its mid-stage trial goal of reducing the size and severity of the skin disease.
Claim 70% Off TipRanks This Holiday Season
- Unlock hedge fund-level data and powerful investing tools for smarter, sharper decisions
- Stay ahead of the market with the latest news and analysis and maximize your portfolio's potential
Therefore, the failed results, in addition to the tough macroeconomic environment, have led to management’s decision to look for cost-cutting strategies such as layoffs.
The past year has not been kind to EVLO stock shareholders. In addition to today’s almost 22% fall, the stock has shed 77% over the past 12 months. Without any positive catalysts in sight, things aren’t looking good for both the stock and the underlying business.