Analyst Ram Selvaraju of H.C. Wainwright reiterated a Buy rating on Equillium (EQ – Research Report), with a price target of $4.00.
Ram Selvaraju’s Buy rating for Equillium’s stock is based on a comprehensive evaluation of the company’s pipeline developments and clinical trial progress. Despite encountering setbacks in its celiac disease program due to the discontinuation of EQ102, Equillium has introduced EQ302, a promising new candidate with potential applications in both gastrointestinal and inflammatory skin conditions. The dual-functionality of EQ302, which targets both IL-15 and IL-21, coupled with its innovative design for increased stability and resistance to proteolysis in the GI tract, supports its clinical testing prospects. Although the development shift has extended the timeline for potential regulatory approval, the analyst maintains confidence in the stock, taking into account the company’s strategy to adapt and progress within its therapeutic areas.
Moreover, positive data from Equillium’s EQUALISE study for itolizumab in treating lupus nephritis suggest comparable efficacy to existing treatments, with a substantial overall response rate and the ability for patients to taper off systemic corticosteroids. This, along with the upcoming interim review of the Phase 3 EQUATOR study, are pivotal events that could significantly shape the company’s future, particularly if Ono Pharmaceutical decides to exercise its option, resulting in a substantial payment and an extended cash runway for Equillium. These factors collectively underpin Selvaraju’s optimistic Buy rating, despite the revised lower 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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