Alumis shares surge to record high as skin disease drug aces late-stage trials

By Kamal Choudhury

Jan 6 (Reuters) – Alumis said on Tuesday its experimental drug met the main goal of improving symptoms of a common skin disease in two late-stage studies, powering its shares to a record high and more than doubling their value.

The drug, envudeucitinib, is being developed to treat moderate-to-severe plaque psoriasis, a chronic condition that causes red, scaly patches on the skin.

In the trials, about 65% of the patients saw their skin symptoms improve by 90% or more after 24 weeks of the treatment. More than 40% of patients saw their symptoms clear up completely, the company said.

The data was “stronger than expected” and complete skin clearance was “meaningfully better” than earlier trials, said Cantor analyst Eric Schmidt.

The company now has “evidence to support that Alumis possesses a best-in-class TYK2 inhibitor,” Schmidt said.

Envudeucitinib blocks TYK2, a protein that triggers immune signals linked to inflammation, and thus reduces the overactive immune response that causes psoriasis.

Over 8 million people in the U.S. have psoriasis, according to the National Psoriasis Foundation.

Shares of the company soared about 155% to $21, set to add about $1.3 billion in market value, if gains hold.

Alumis plans to seek U.S. regulatory approval for envudeucitinib in the second half. If cleared, it would compete with Bristol Myers Squibb’s Sotyktu, a same-class drug approved for psoriasis in 2022.

The “likelihood that we’re going to launch … on a global level in multiple indications is very small,” Alumis CEO Martin Babler said, adding that there “should be interest for this asset from potential strategic partners”.

Alumis is also testing the drug in lupus in a mid-stage trial, with data expected in the third quarter of 2026.

(Reporting by Kamal Choudhury in Bengaluru; Editing by Shailesh Kuber)