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Sep 30, 2022

Equillium Q3 2022 Earnings Report

Reported financial results for the third quarter of 2022 and provided an update on its clinical development programs.

Key Takeaways

Equillium reported a net loss of $13.7 million for Q3 2022. The company announced a pending acquisition of Metacrine, expected to add $35 million in cash and extend operating runway into 2024. They also initiated Phase 2 study of EQ101 and Phase 1 study of EQ102.

Announced positive interim results from the EQUALISE study of itolizumab in highly proteinuric lupus nephritis patients.

Announced the pending acquisition of Metacrine, expected to add $35 million in cash at closing and extend operating runway into 2024.

Initiated Phase 2 study of EQ101 in alopecia areata and Phase 1 study of EQ102 in healthy volunteers and celiac disease patients.

R&D expenses increased to $8.8 million, and G&A expenses increased to $4.5 million.

EPS
-$0.4
Previous year: -$0.35
+14.3%
Cash and Equivalents
$44.5M
Previous year: $90.7M
-50.9%
Free Cash Flow
-$13.1M
Previous year: -$7.04M
+85.5%
Total Assets
$48.6M
Previous year: $92.5M
-47.4%

Equillium

Equillium

Forward Guidance

Equillium anticipates several milestones and catalysts in the near future.

Positive Outlook

  • Topline data from the Type B part of the itolizumab EQUALISE Phase 1b study in patients with lupus nephritis expected mid-2023.
  • Data from the EQ101 Phase 2 study in subjects with alopecia areata expected in 2023.
  • Data from the EQ102 Phase 1 study in healthy volunteers and subjects with celiac disease expected in 2023.
  • The Metacrine acquisition will add approximately $35 million to the balance sheet.
  • The Metacrine acquisition will extend the company's cash runway into 2024.

Challenges Ahead

  • There are no guarantees that any of Equillium's ongoing or planned clinical studies will show safety or efficacy.
  • Delays in the commencement, enrollment, and completion of clinical studies and the reporting of data therefrom are possible.
  • Studies may not be completed as planned.
  • Changes in the competitive landscape could negatively impact Equillium.
  • Market volatility may impact cash reserves.