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.
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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.