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Mar 31
Equillium Q1 2025 Earnings Report
Equillium, Inc. reported a net loss of $8.654 million in Q1 2025, with no revenue recognized, and a decrease in operating expenses compared to the previous year.
Key Takeaways
Equillium, Inc. experienced a significant net loss of $8.654 million in the first quarter of 2025, with no revenue generated during this period. The company's operating expenses decreased, primarily due to a wind-down of clinical studies and CMC activities. The company's cash and cash equivalents stood at $14.502 million as of March 31, 2025, and management believes these funds will be sufficient to fund operations into the third quarter of 2025.
Net loss for Q1 2025 was $8.654 million, a significant increase from $2.734 million in Q1 2024.
No revenue was recognized in Q1 2025, compared to $10.689 million in Q1 2024, due to the termination of the Asset Purchase Agreement with Ono.
Total operating expenses decreased to $8.870 million in Q1 2025 from $13.480 million in Q1 2024, driven by reduced research and development costs.
Cash and cash equivalents were $14.502 million as of March 31, 2025, down from $18.085 million at the end of 2024.
Equillium
Equillium
Forward Guidance
Equillium, Inc. anticipates continued significant expenses and operating losses in the foreseeable future if it resumes development activities. The company expects its current cash and cash equivalents to fund operations into the third quarter of 2025, but additional capital will be needed beyond that. Failure to raise additional capital in Q2 2025 may force the company to pursue strategic alternatives, including mergers or winding up operations.
Positive Outlook
- Potential to advance preclinical development of EQ504, a novel aryl hydrocarbon receptor modulator.
- Readiness to initiate a first-in-human Phase 1 clinical study for EQ504 in Q1 2026, subject to additional capital.
- Itolizumab (EQ001) showed clinically meaningful improvement in durable CR from Day 29 to 99 in the Phase 3 EQUATOR study.
- Statistically significant evidence of clinical benefit observed for itolizumab (EQ001) in the EQUATOR study.
- Potential for future revenue generation from collaborations, license agreements, or product sales if development activities resume and regulatory approvals are obtained.
Challenges Ahead
- Substantial doubt about the company's ability to continue as a going concern due to limited cash and recurring losses.
- Inability to secure additional financing or enter into favorable arrangements could lead to delays or termination of research and development programs.
- FDA declined to grant Breakthrough Therapy Designation or support an accelerated approval pathway for itolizumab (EQ001) based on EQUATOR study data.
- Paused research and development activities for EQ504 and EQ302 due to financial constraints.
- Risk of delisting from Nasdaq Capital Market if minimum bid price requirements are not met by June 11, 2025.