NASDAQ$EVLO

Evelo Biosciences Inc · Q3 2022 earnings

Q3 2022 earnings · · Investor relations

Briefing

Reported third quarter financial results and business highlights.

Evelo Biosciences reported a net loss of $30.6 million for the third quarter of 2022, with cash and cash equivalents totaling $69.1 million as of September 30, 2022. The company is progressing with its clinical programs, including EDP1815 in atopic dermatitis and psoriasis, and EDP2939 in psoriasis, with multiple Phase 2 data readouts expected in 2023.

  • On track for multiple Phase 2 readouts for EDP1815 in atopic dermatitis in 2023, with data from first three cohorts expected in early 1Q 2023 and fourth cohort in 2Q 2023.
  • Phase 2 data for first extracellular vesicle product candidate EDP2939 in psoriasis anticipated in 2H 2023.
  • Continuing to advance regulatory discussions for registration trials for EDP1815 in psoriasis.
  • Cash and cash equivalents were $69.1 million as of September 30, 2022.

Headline financials

Total Revenue

$0.00

Previous: $0.00
EPS (adj)

-$5.60

Previous: -$12.60+55.6%
Capital Expenditures

-$9K

Previous: -$1.96M+99.5%
Free Cash Flow

-$22.6M

Previous: -$70.8M+68.1%
Net Income

-$30.6M

Previous: -$33.7M+9.3%
Operating Income

-$29.1M

Previous: -$32.7M+11.2%
Gross Profit

-$1.67M

Previous: $0.00
Cash & Equivalents

$69.1M

Previous: $95.9M-28.0%
Total Assets

$86.3M

Previous: $116M-25.9%
R&D Expense

$21.9M

Previous: $22.6M-3.0%

Revenue & EPS history

Evelo · Revenue · Quarterly

$0

Q3 2022

Forward guidance

Evelo Biosciences is on track to deliver on three Phase 2 clinical milestones throughout 2023.

Tailwinds

  • Data from the first three cohorts in the Phase 2 trial of EDP1815 in atopic dermatitis is expected early in the first quarter of 2023.
  • Data from the fourth cohort in the Phase 2 trial of EDP1815 in atopic dermatitis is expected in the second quarter of 2023.
  • Data from patients in the Phase 2 trial of EDP2939 in psoriasis is anticipated in the second half of 2023.
  • EMA and MHRA acknowledged the appropriateness of the proposed registration clinical trial design for EDP1815 in psoriasis.
  • The company has the technical and manufacturing operations in place that it believes will allow for registration trials and commercial launch.

Headwinds

  • Received a request from the MHRA for additional information with respect to the Clinical Trial Application (CTA) submission for the EDP2939 Phase 1/2 trial.
  • The lengthy, expensive, and uncertain process of clinical drug development, including potential delays in regulatory approval.
  • Reliance on third parties and collaborators to expand microbial library, conduct clinical trials, manufacture product candidates, and develop and commercialize product candidates, if approved.
  • Lack of experience in manufacturing, selling, marketing, and distributing product candidates.
  • Potential lawsuits for, or claims of, infringement of third-party intellectual property or challenges to the ownership of intellectual property.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q3 2022

Historical avgQ3 2022

+1.3%

Avg return

Earnings day

-1.4%

Avg return

5 days after

-9.7%

Avg return

30 days after

54%

13 / 24 earnings

Positive

+32.3%

Q2 2023

Best reaction

-20.3%

Q1 2022

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q4 2023+0.0%+0.0%-9.8%
Q3 2023-7.6%+4.5%+3.8%
Q2 2023+32.3%-30.5%-41.0%
Q1 2023+2.9%+10.2%-28.8%
Q4 2022-17.8%-27.0%-46.9%
Q3 2022+3.3%-3.3%-8.5%
Q2 2022-7.1%-10.5%-25.4%
Q1 2022-20.3%-14.5%-2.4%
Q4 2021+29.4%+13.5%-26.3%
Q3 2021+10.2%+27.0%+6.0%
Q2 2021-0.9%+5.0%+20.7%
Q1 2021+8.8%-14.4%+11.0%
Q4 2020+14.5%+21.2%+1.6%
Q3 2020-12.9%-5.9%+14.0%
Q2 2020-1.6%-0.5%+15.2%
Q1 2020-5.7%-14.0%-20.9%
Q4 2019+1.8%+12.2%-28.4%
Q3 2019-3.3%-6.1%-35.9%
Q2 2019+3.9%-2.2%+7.0%
Q1 2019+0.8%-1.5%-11.8%
Q4 2018+1.3%+3.0%-6.9%
Q3 2018+0.2%+3.4%+3.7%
Q2 2018-3.4%-5.9%+2.6%
Q1 2018+1.8%+2.2%-24.8%
Q4 2017
Q3 2017
Q2 2017
Q1 2017

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