Evommune Secures $150M in IPO Amid Federal Shutdown, Advancing Immune Disorder Treatments

Evommune, a Palo Alto-based biotechnology company, has successfully priced its initial public offering (IPO) at $150 million, despite the ongoing federal government shutdown. The company, which specializes in developing treatments for immune conditions, sold nearly 9.4 million shares at $16 each and is set to begin trading on the New York Stock Exchange under the ticker symbol "EVMN".

Novel Approach to IPO During Government Shutdown

Evommune's successful IPO comes as a result of utilizing a little-known provision in the Securities Act. This workaround allows companies with existing IPO registration statements to go public by filing an amended version that removes specific legal language. The offering then automatically prices after 20 days.

This strategy was also recently employed by MapLight Therapeutics, marking a trend in biotech companies finding innovative ways to navigate the challenges posed by the federal shutdown.

Promising Pipeline for Immune Disorders

Evommune is developing potential competitors to widely used inflammatory disease drugs such as Xolair and Dupixent. The company's lead candidate, EVO756, is an oral medicine targeting MRGPRX2, which Evommune believes may provide quicker relief from disease symptoms compared to injectable alternatives.

Key developments in Evommune's pipeline include:

• Two Phase 2 studies of EVO756 in chronic spontaneous urticaria and atopic dermatitis, with results expected next year
• EVO301, a second drug in mid-stage testing for atopic dermatitis, which targets IL-18, a cytokine implicated in inflammation
• Plans to test EVO301 in ulcerative colitis trials next year, with potential expansion into other indications such as Crohn's disease

Financial Backing and Industry Context

Prior to its IPO, Evommune had raised $267 million in private financing, supported by investors including EQT Life Sciences, Pivotal bioVenture Partners, and RA Capital Management. The company's successful public offering stands out in a year that has seen only a dozen biotech IPOs, approximately half the number observed at this point last year.

Evommune's IPO, along with recent offerings from MapLight Therapeutics and LB Pharmaceuticals, represents a small but significant group of drug startups completing major stock offerings in a challenging market environment.