Evelo Biosciences, Inc. (NASDAQ:EVLO) Q2 2020 Earnings Conference Call - Final Transcript

Jul 30, 2020 • 08:30 am ET


Evelo Biosciences, Inc. (NASDAQ:EVLO) Q2 2020 Earnings Conference Call - Final Transcript


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Balkrishan Gill

in inflammation, we are initially focused on the treatment of individuals with moderate disease. These people are not generally treated with existing anti-inflammatories, such as antibodies or JAK inhibitors because of safety concerns, cost or the inconvenience of injection or infusion. Over 3.5 million people in the US and EU5 alone, have mild to moderate psoriasis or atopic dermatitis. The numbers globally, including China, are estimated to be at least 5 times this level, almost 20 million potential patients globally. This also holds true for broader immune disorders with more than 600 million people around the world living with the conditions such as psoriatic arthritis, rheumatoid arthritis, asthma, allergy and multiple sclerosis.

As you know, resolving inflammation is important not just for the treatment of immune disorders, but also in treating viral infections such as COVID-19. The Goldilocks effect of EDP1815, we observed preclinically in which hyperinflammation is resolved whilst preserving antiviral activity, gives EDP1815 differentiated potential to help COVID-19 patients.

Turning to oncology. Our data suggests that EDP1503 is well tolerated and amplifies innate and adaptive immunity to augment tumor killing. EDP1503 has the potential to provide additional patient benefit in multiple tumors across all stages of cancer from first line to last line. We have a lot going on. And following the $52 million financing that we completed in June, we can execute on our clinical milestones while continuing to explore the potential of SINTAX.

With that, I will now turn the call over to Mark.

Mark Bodmer

Thank you. Simba referred to a Goldilocks effect of EDP1815. In scientific terms, this means being able to resolve inflammation without damaging the immune surveillance needed to protect us from infection of cancer. This is what the body does naturally, but we haven't found any drugs that mimic this natural physiology. Based on what we've seen preclinically and clinically, it seems that the control of inflammation throughout the body by the small intestinal axis may be biology that will enable us to create such medicines. Many important new biologic and small molecule drugs have been created over the last 20 to 30 years. They all work by extinguishing the mediators of inflammation rather than by inducing processes of resolution, and they have two shared properties. First, they carry attendant risks to immune surveillance; second, they target single pathways of the complex interconnective inflammatory process.

The next frontier in anti-inflammatory therapy will be oral drugs, which resolve this complex process of inflammation in a safe manner. SINTAX medicines may offer a solution by coordinately downregulating multiple inflammatory pathways without suppressing type 1 interferon mechanisms of immune surveillance. Our evidence for not impacting type 1 interferons is preclinical. Following the recently announced results with dexamethasone in the RECOVERY trial in COVID-19 patients, we've been comparing and combining EDP1815 and dexamethasone in preclinical models. This work's yielded results that have implications for all inflammatory diseases beyond the potential for COVID-19 treatment. EDP1815 and dexamethasone are similarly effective as anti-inflammatories preclinically. However, dexamethasone heavily suppresses Interferon