Evommune secures $115M for I&I pipeline, anticipates Phase 2 results

Evommune, a startup specializing in inflammation and immunology, has recently secured $115 million in Series C funding to advance its research and development pipeline. This financial boost is expected to support multiple Phase 2 clinical trials over the next 18 months. This development comes after Evommune halted the Phase 2a trials of its IRAK4 inhibitor for treating atopic dermatitis last September. Despite this setback, the company has quickly progressed with mid-stage trials for its MRGPRX2 inhibitor, designated as EVO756, and plans additional studies shortly.

EVO756, an oral medication taken once daily, is under investigation for various indications, including chronic inducible urticaria, chronic spontaneous urticaria, atopic dermatitis, among others. Evommune has also established a partnership with Maruho to develop and commercialize this drug in select Asian markets. Interestingly, another company, Septerna, which recently went public, is also exploring MRGPRX2 inhibitors.

Additionally, Evommune has developed an IL-18-targeted fusion protein called EVO301, intended for atopic dermatitis. According to CEO Luis Peña, this treatment will enter Phase 2 trials within the first quarter of the next year. This asset was licensed from South Korean company AprilBio for an upfront payment of $15 million, with potential future payments totaling around $475 million.

Evommune has not completely abandoned its IRAK4 inhibitor, known as EVO101. Currently, an investigator-initiated trial is testing EVO101 for hidradenitis suppurativa, a chronic skin condition that has garnered attention recently. Positive data from this trial could prompt Evommune to resume development of EVO101.

The recent Series C funding round was co-led by RA Capital and Sectoral Asset Management, coming 18 months after the company raised $50 million in a Series B round. This new funding is expected to provide Evommune with several years of operational runway. CEO Luis Peña indicated that the company might consider going public, especially after releasing Phase 2 data for EVO756 in chronic inducible urticaria around mid-next year.

Peña also mentioned that Evommune might draw interest from pharmaceutical companies looking to acquire innovative assets. Evommune's leadership comprises former Dermira executives, who previously facilitated Dermira's sale to Eli Lilly for $1.1 billion in early 2020. Peña emphasized that while the company is open to partnerships, they possess substantial development expertise internally and do not require co-development assistance. However, they are open to acquisition offers if they align with the company's strategic goals.

Peña declined to comment on any existing takeover proposals, emphasizing that companies should not be structured solely with the intent of being acquired. He formed Evommune shortly after his departure from Eli Lilly in 2020, following Lilly's acquisition of Dermira. Notably, the primary drug from that acquisition, lebrikizumab, received FDA approval for treating eczema last month.

Evommune has also obtained licenses for its IRAK4 inhibitor and EVO756, among other programs, directly from Eli Lilly. This strategic licensing and the recent funding are set to propel the company's ambitious pipeline forward, potentially offering novel treatment options for various inflammatory and immunological conditions.