Co-Founder of Moderna Buys More Shares of Biotech Evelo Biosciences

by webmaster

Flagship Pioneering, an investment vehicle led by Noubar Afeyan, co-founder of Moderna and its chairman, recently acquired additional shares of biotech company Evelo Biosciences.

On July 11, Flagship affiliates purchased 5.4 million Evelo shares at a price of $2.31 each, totaling $12.5 million. As per the Securities and Exchange Commission filing, Flagship now holds a total of 6.5 million Evelo shares.

This acquisition was facilitated through a private placement with Evelo, wherein the company sells shares and receives the proceeds directly. Unlike open-market transactions, the issuing company does not receive any proceeds from such transactions.

Flagship took the lead in Evelo’s private placement, which involved a total of 11,025,334 shares priced at $2.31 each. Evelo is expected to receive gross proceeds of approximately $25.5 million from this sale. The funds will be allocated towards the ongoing Phase 2a trial of EDP2939 in moderate psoriasis, reducing approximately $5 million of debt, and serving general corporate purposes.

No comments were provided by Afeyan or Flagship regarding the purchase of Evelo stock.

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Evelo Biosciences: Pioneering Oral Medicines for Inflammatory Diseases and Cancer

Evelo Biosciences is revolutionizing the field of inflammation-resolving medicines with its innovative platform of orally delivered treatments that target the small intestinal axis. With the potential to address both inflammatory diseases and cancer, Evelo is at the forefront of groundbreaking medical discoveries.

As of March 31, prior to a recent private placement, Evelo had an impressive total of $27.5 million in cash and cash equivalents, providing ample funding for planned operating expenses and capital-expenditure requirements well into the third quarter.

Since its initial public offering in May 2018, Evelo has made significant strides. The company had priced its shares at $16 each during the IPO, or $320 when adjusted for a 20-for-1 reverse split that took effect on June 30, 2023. This reverse split was a strategic move to ensure compliance with the $1 minimum per-share bid price requirement for continued listing on the Nasdaq Global Select Market.

Notably, Evelo’s stock had experienced remarkable success prior to this year. In January 2021, it reached an all-time adjusted intraday high of $398.56, driven by the promising development of Covid-19 therapies in clinical trials. However, subsequent disappointments with these candidates caused a significant decline in share value. Currently, the stock stands at $3.61 as of Monday’s closing, representing a staggering drop of about 99% from its IPO price and an overall decline of 89% for the year.

Despite these challenges, Evelo remains steadfast in its mission to revolutionize the landscape of inflammatory diseases and cancer treatments. Flagship, its largest shareholder with a pre-placement stake of 45%, is also led by Noubar Afeyan, who serves as CEO, director, and sole stockholder.

Evelo Biosciences is poised to make a lasting impact in the realm of medical innovation, offering hope and potential breakthroughs for patients worldwide.

Inside Scoop: Unveiling Stock Transactions by Prominent Figures

The Inside Scoop is a recurring feature that delves into stock transactions executed by corporate executives, board members, significant shareholders, politicians, and other notable personalities. These individuals, known as insiders, must adhere to strict regulations mandating the disclosure of their stock trades. Such disclosures are reported to relevant regulatory bodies like the Securities and Exchange Commission.

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