Evommune secures $115M to speed up immune drug trials

California-based biotech startup Evommune has successfully raised $115 million to advance its development of two promising drugs designed to treat chronic immune conditions. The recent Series C funding, announced on Thursday, will facilitate a series of Phase 2 clinical trials, with all results expected by the close of 2026.

Evommune’s most advanced drug, EVO756, is a small molecule currently undergoing Phase 2 testing for chronic skin hives, also known as urticaria. A second study for EVO756 is planned to commence next year. Additionally, another drug, EVO301, is anticipated to begin Phase 2 trials for a common type of eczema by 2025.

Urticaria encompasses a range of inflammatory skin conditions that result in hives, severe itching, burning, or swelling, which can appear spontaneously or be triggered by environmental factors like temperature changes. This condition affects millions in the U.S., with patients typically relying on antihistamines or the biologic Xolair for relief. However, these treatments often fail to provide timely or sufficient relief, prompting several pharmaceutical companies to develop improved therapies. Among these experimental treatments are Celldex Therapeutics’ barzovolimab and Sanofi and Regeneron’s Dupixent, which require infusion or subcutaneous injection. In contrast, Evommune’s EVO756 is administered orally and targets a specific protein, mas-related G-protein coupled receptor X2 (MRGPRX2), expressed on mast cells believed to contribute to urticaria.

Evommune isn’t the only company working on such treatments. Another startup, Escient Pharmaceuticals, is also developing a similar drug, acquired by Incyte in April. Despite this competition, CEO Luis Pena believes EVO756 could be a first-of-its-kind treatment for mast cell-triggered conditions. The company released initial proof-of-concept results in July and plans to present more detailed data at an upcoming conference. The ongoing Phase 2 trial for inducible urticaria is expected to deliver results in the first quarter of 2025, with further data from a spontaneous urticaria study anticipated in 2026.

Alongside EVO756, Evommune is also developing EVO301, a fusion protein that targets the inflammatory cytokine IL-18. The company licensed this drug from Korean biotech AprilBio earlier this year and is evaluating it for atopic dermatitis. During Phase 1 trials, EVO301 demonstrated a promising clinical profile with potentially convenient dosing intervals, according to Pena.

On October 31, 2024, Evommune, headquartered in Palo Alto, announced it had secured $115 million in its latest funding round. The company, led by CEO Luis Pena, who previously served as chief development officer at Dermira, has raised over $130 million from previous funding rounds in 2021 and 2023, with investments from Pivotal bioVenture Partners, EQT Life Sciences, and other backers.

The latest financing round was co-led by RA Capital Management and Sectoral Asset Management, organizations that invest in both public and private companies. Such crossover funding rounds often precede initial public offerings (IPOs), although the sector has experienced a recent downturn. Pena highlighted that Evommune’s leadership team has experience in managing both private and public enterprises. With this new capital and multiple data readouts on the horizon, the company is well-positioned to explore various strategic options, including a potential IPO.

Should Evommune decide to pursue an IPO, it would align with a recent trend where a significant number of life sciences companies, particularly those with lead programs in advanced clinical stages, have gone public. According to BioPharma Dive data, 14 out of 23 life sciences companies that completed an IPO this year had key programs in Phase 2 trials or later.