** Shares of drug developer Evommune EVMN.N fall 32% to over four-month low of $17.10

** Co says its experimental pill, EVO756, did not reduce hive activity scores significantly better than a placebo after 12 weeks, failing to meet the main goal of a mid-stage trial

** Co was testing the drug in patients with moderate-to-severe chronic spontaneous urticaria, commonly known as chronic hives, which causes recurring itchy welts on the skin that can last for months or years and significantly disrupt daily life

** RBC Capital Markets analysts cut Evommune's PT to $30 from $50 and said the research firm believes "the issue is more likely the indication rather than the drug or mechanism"

** EVO756 works by blocking the MRGPRX2 receptor on mast cells, a pathway involved in triggering inflammation and itch

** The trial enrolled 160 patients who had not responded to standard antihistamines

** Co says it plans to continue development of EVO756 in atopic dermatitis, a common form of eczema and migraine

** As of last close, stock was up 47% YTD