Analyst Thomas Smith from Leerink Partners reiterated a Buy rating on Equillium (EQ – Research Report) and keeping the price target at $7.00.
Thomas Smith has given his Buy rating due to a combination of factors surrounding Equillium’s promising pipeline and near-term catalysts. Equillium’s lead asset, EQ101, a tri-specific inhibitor targeting IL-2/9/15, is poised for Phase 2 trial data release in the second quarter of 2024, which is expected to provide early indications of efficacy in treating moderate to severe alopecia areata. In addition, the company’s anti-CD6 monoclonal antibody, itolizumab, has shown significant promise in lupus nephritis with strong overall response rates, potentially leading to an exercise decision from Ono in the second half of the year, which could further enhance the stock’s value.
Furthermore, Equillium’s solid financial position, with sufficient cash to fund operations into the second half of 2025, reinforces confidence in the company’s ability to continue its clinical development programs. The anticipation of favorable topline data and the possibility of Ono option exercise for itolizumab could provide significant upside to Equillium’s stock, hence the Buy rating. Smith’s conviction is also supported by the company’s recent achievement in reducing urine protein creatinine ratio in lupus nephritis patients, which may be a precursor to broader clinical success.
According to TipRanks, Smith is a top 100 analyst with an average return of 35.1% and a 44.28% success rate. Smith covers the Healthcare sector, focusing on stocks such as Alpine Immune Sciences, RAPT Therapeutics, and Keros Therapeutics.
In another report released on May 8, H.C. Wainwright also reiterated a Buy rating on the stock with a $5.00 price target.
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Equillium (EQ) Company Description:
Equillium, Inc. is a biotechnology company, which engages in the development of products for severe immuno-inflammatory disorders with high unmet medical need. Its product pipeline include EQ001, is a monoclonal antibody that selectively targets the novel immune checkpoint receptor CD6. The company was founded by Daniel Mark Bradbury, Bruce D. Steel, and Stephen Connelly on March 16, 2017 and is headquartered in La Jolla, CA.
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