Equillium disclosed its third‑quarter 2025 results, reporting zero revenue and a net loss of $4.2 million, or $(0.06) per share. The loss reflects the termination of the Ono Pharmaceutical asset purchase agreement in October 2024, which had previously supplied development funding and amortization income. The company’s cash, cash equivalents and short‑term investments rose to $33.1 million as of September 30, 2025, up from $22.6 million at the end of 2024, giving the firm a stronger liquidity cushion as it pivots its pipeline.
The company also announced a private‑placement financing that will raise up to $50 million in gross proceeds. An initial tranche of approximately $30 million is expected to fund operations through 2027, while a second tranche of up to $20 million will be released only if the Phase 1 study of its lead asset, EQ504, is initiated and other milestones are met. The syndicate is led by ADAR1 Capital Management and Janus Henderson Investors, with participation from Adage Capital Partners, Coastlands Capital and Woodline Partners. The financing extends the company’s runway well beyond the third quarter of 2025, de‑risking near‑term operations after the loss of Ono revenue.
Equillium’s operational focus has shifted to accelerating the Phase 1 program for EQ504, an oral AhR modulator targeting ulcerative colitis. Research and development activities have been paused, and the EQUATOR study for itolizumab is being closed out. The company expects to begin the EQ504 Phase 1 study in mid‑2026, with proof‑of‑concept data anticipated six months later. This strategic realignment concentrates resources on the most promising asset and aligns the company’s pipeline with a growing ulcerative colitis market.
Management highlighted the earnings beat and the financing as key milestones. CEO Bruce Steel said the new capital “enables us to accelerate the development of EQ504 into a Phase 1 proof‑of‑mechanism study in mid‑2026, with data expected to follow approximately six months thereafter.” He also noted that the company is evaluating strategic options and has expanded its treasury strategy to include digital currencies, reflecting a broader approach to liquidity and long‑term capital appreciation.
Analysts had expected a net loss of $7.26 million and an EPS of $(0.22). Equillium’s actual loss of $4.23 million and EPS of $(0.06) beat expectations by $3.03 million and $0.16, respectively. The beat was largely driven by steep budget cuts, particularly in R&D, which fell by nearly 87 % year‑over‑year. The company’s cash position and the new financing mitigate the impact of the revenue loss, positioning Equillium to pursue its clinical agenda without immediate funding pressure.
The combination of a stronger cash position, a significant financing package, and a focused pipeline gives Equillium a clearer path forward. While the company remains a clinical‑stage biotech with no revenue, the secured capital and the planned Phase 1 study of EQ504 provide a tangible near‑term catalyst for future development milestones.
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