Evommune's (EVMN) experimental drug for chronic hives may have broader uses if upcoming trial results show it's both safe and effective, RBC Capital Markets said Friday in a report.

The company's MRGPRX2 antagonist EVO756 has about a 50% chance of working on chronic spontaneous urticaria, or CSU, based on early signs that it reaches the right tissues and hits its intended target, RBC said. There's no direct CSU data yet, though the drug's exposure levels and results from a related challenge test support optimism, the report said.

If the CSU study reads out positively later this quarter, RBC said EVO756 may also be tested in other conditions linked to overactive immune cells, including migraine, interstitial cystitis, and other inflammatory disorders. The CSU market is estimated at $850 million, with migraine representing a larger commercial opportunity, the report said.

Some investor skepticism persists around EVO756, though its early data and tissue-targeting signals support for a more constructive view, RBC said.

Evommune said it will give a presentation on Monday "highlighting the migraine treatment landscape and the role of MRGPRX2 inhibition."

RBC maintained its outperform rating on Evommune stock with a $48 price target.

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