Should You Punt On This Small Cap Biotechnology Stock-EVMN

Acrobull Canada Advisory Inc.

February 04			2025
Name	Ticker	Sector/Industry		Market Cap	Risk Factor
Evommune, Inc.	NYSE-EVMN	Biotechnology		$582.565 Million	Medium

Evommune, Inc. is a clinical-stage biotechnology company based in the United States focused on the development of novel therapies targeting key drivers of chronic inflammatory diseases. The Company’s initial clinical development programs are centered on chronic spontaneous urticaria (CSU), atopic dermatitis (AD), and ulcerative colitis (UC).

Recent Highlights

Medicine Testing- EVO301: EVO301 is a long-acting fusion protein that combines an interleukin-18 (IL-18) binding protein with an anti-serum albumin Fab-associated domain. The molecule is designed to enhance tissue distribution and durability of exposure in inflamed tissues compared to traditional monoclonal antibodies.

Phase 2a Clinical Development: In March 2025, the Company initiated a Phase 2a clinical trial (n=60) evaluating EVO301 in adult patients with moderate-to-severe atopic dermatitis (AD). The trial is fully enrolled, and the Company expects to report top-line data in the first half of 2026.

Third Quarter 2025 Financial Highlights

Cash, Cash Equivalents and Investments: As of September 30, 2025, the Company reported cash, cash equivalents and investments totaling $76.0 million, an increase from $72.0 million as of December 31, 2024. The increase primarily reflects proceeds from the Company’s strategic collaboration activities, partially offset by ongoing operating expenditures.

Revenue: Revenue for the quarter ended September 30, 2025 was $10.0 million, compared to no revenue for the same period in 2024. Revenue recognized during the quarter was entirely attributable to the Company’s strategic collaboration with Maruho, related to the licensing of EVO756 in Japan.

Research and Development Expenses: Research and development expenses were $19.6 million for the third quarter of 2025, representing an increase from $13.3 million for the third quarter of 2024. The increase was primarily driven by expanded clinical development activities, higher personnel-related costs, and increased manufacturing and preclinical expenses to support the advancement of the Company’s pipeline.

General and Administrative Expenses: General and administrative expenses totaled $3.7 million for the third quarter of 2025, compared to $3.2 million for the same period in 2024. The increase was primarily attributable to higher personnel costs, professional fees, and public company-related expenses.

Net Loss: Net loss for the third quarter of 2025 was $12.5 million, compared to a net loss of $15.9 million for the third quarter of 2024. The decrease in net loss was primarily driven by the recognition of collaboration revenue, partially offset by increased operating expenses associated with the Company’s research and development efforts.

Stock Observation- Revenue: Revenue for the quarter ended September 30, 2025 was $10.0 million, compared to no revenue for the same period in 2024. The Company expects future revenue to be driven primarily by continued progress under its strategic collaboration agreements, including potential milestone payments and other development-related revenues, although the timing and amount of such revenue remain subject to the achievement of specified clinical and regulatory milestones.

Risk Involved- Financial performance of the company may have an impact on the company stock performance.

Considering all the factors and financials of the company Acrobull Canada Advisory Inc. maintains Customer Choose Buy for the stock.

Disclaimer- Though our research is fundamentally and technically based on Acrobull Canada Advisory Inc. only provides general advice on the stocks and it is imperative for the investors to do the risk assessment for themselves before investing as Acrobull Canada Advisory Inc. would not be liable for any loss or profit arising out through the investment made by the investors on our recommendations.

It is also advisable for the investors to consult with Financial Advisor, Broker or to seek any legal assistance as the research conducted by Acrobull Canada Advisory Inc. is factually based and recommendations are given in accordance with that, but it is imperative to understand that Acrobull Canada Advisory Inc. does not guarantee returns.

Acrobull Recommendation Based on Evaluation

Current Market Price	$18.48 USD
Acrobull Recommendation	Buy at $17.70 USD
Target Price	$20.21 USD
RSI Level	48 RSI
Total Shares Outstanding	31.52 Million
Shares Held by Insiders Shares Held by Institutions Risk Factor Stop Loss	12.13% 47.50% Medium 5%