Buy Rating Affirmed for Equillium on Milestones and Financial Prospects

Equillium (EQ – Research Report), the Healthcare sector company, was revisited by a Wall Street analyst today. Analyst Ram Selvaraju from H.C. Wainwright reiterated a Buy rating on the stock and has a $5.00 price target.

Ram Selvaraju has given his Buy rating due to a combination of factors affecting Equillium’s prospects and financial position. Selvaraju’s optimism is first fueled by the successful interim enrollment target achievement for the Phase 3 EQUATOR study of itolizumab in treating acute graft-vs.-host disease (aGVHD), a significant milestone for the company. The anticipated review of this data by an independent committee could recommend the continuation of the study, which would likely persuade Ono Pharmaceutical to exercise its option to acquire rights to itolizumab. This scenario would not only validate the drug’s potential but also provide a substantial financial boost to Equillium.
Additionally, the forthcoming decision by Ono is the sole event left to trigger its option exercise, which could infuse Equillium with around $32.2 million, significantly strengthening the company’s financial stability and extending its operational runway. The prospect of additional milestones from Ono, totaling around $101 million, further underpins the Buy rating. Selvaraju also points to the imminent results from the Phase 2 trial of EQ101 in alopecia areata, which could become a significant value inflection point for Equillium, potentially leading to larger future studies and pivotal development. The company’s financial results, with a net loss per share in line with forecasts and sufficient funding to sustain operations into the second half of 2025, reinforce the Buy rating.

In another report released on May 10, Leerink Partners also reiterated a Buy rating on the stock with a $7.00 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.