Equillium Reports First Quarter 2020 Financial Results
May 13 2020 - 4:07PM
Equillium, Inc. (Nasdaq: EQ), a clinical-stage biotechnology
company leveraging deep understanding of immunobiology to develop
products to treat severe autoimmune and inflammatory disorders,
today announced financial results for the first quarter 2020.
“We continue to advance our EQUATE clinical trial for itolizumab
in patients with acute graft-versus-host disease (aGVHD), an acute
life-threatening disease that remains a medical priority in the
midst of the coronavirus pandemic,” said Bruce Steel, chief
executive officer of Equillium. “Our EQUIP and EQUALISE trials in
uncontrolled asthma and lupus nephritis, respectively, remain
paused as healthcare professionals have prioritized resources
around the pandemic. We continue to monitor the situation
closely to assess the feasibility of recommencing these
trials.”
Business Highlights:
- Strengthened the leadership team with the appointments of Maple
Fung, M.D., as vice president of clinical development and Matthew
Ritter, Ph.D., as vice president of corporate development.
- Presented translational data supporting the potential of
itolizumab in the treatment of graft-versus-host disease (GVHD) at
the Transplantation & Cellular Therapy (TCT) Meeting.
- Entered into a common stock purchase agreement for up to $15
million with Lincoln Park Capital Fund, LLC. With this
potential funding source and Equillium’s cash and cash equivalents
at the end of the first quarter 2020, Equillium believes it has
sufficient resources to support operations into the second half of
2021.
Upcoming Catalysts:
- Initial data from the Phase 1b part of the EQUATE trial in
aGVHD expected in the second half of 2020
First Quarter 2020 Financial Results
Research and development (R&D) expenses.
Total R&D expenses for the three months ended March 31, 2020
were $4.7 million, compared with $3.8 million for the same period
in 2019. The increase in R&D expenses was primarily driven by
the initiation and ramp-up of clinical development activities
associated with the EQUIP, EQUATE and EQUALISE clinical trials and
increased headcount expenses offset by slight decreases in expenses
related to preclinical research activities and general overhead
expenses.
General and administrative (G&A) expenses.
Total G&A expenses for the three months ended March 31, 2020
were $2.7 million, compared with $2.6 million for the same period
in 2019. The increase in G&A expenses was primarily driven by
increased non-cash stock based compensation expense and consulting
expenses, offset by slight decreases in legal and other
professional fees.
Net loss. Net loss for the three months ended
March 31, 2020 was $7.8 million, or $(0.45) per basic and diluted
share, compared with a net loss of $6.0 million, or $(0.34) per
basic and diluted share for the same period in 2019.
Cash, cash equivalents and short-term
investments. Equillium held cash, cash equivalents and
short-term investments totaling $47.7 million at March 31, 2020,
compared to $53.1 million at December 31, 2019.
About EquilliumEquillium is a clinical-stage
biotechnology company leveraging deep understanding of
immunobiology to develop products to treat severe autoimmune and
inflammatory disorders with high unmet medical need.
Equillium’s initial product candidate, itolizumab (EQ001), is a
clinical-stage, first-in-class monoclonal antibody that selectively
targets the CD6-ALCAM pathway. This pathway plays a central role in
modulating the activity and trafficking of T cells that drive a
number of immuno-inflammatory diseases. Itolizumab is a
clinically-validated therapeutic that has demonstrated a favorable
safety and tolerability profile. Equillium acquired rights to
itolizumab through an exclusive partnership with Biocon Limited.
Equillium believes that itolizumab (EQ001) has the potential to be
a best-in-class disease modifying therapeutic and is advancing the
clinical development of itolizumab (EQ001) in the following severe
immuno-inflammatory disorders: acute graft-versus-host disease,
uncontrolled asthma, and lupus nephritis. For more information,
visit www.equilliumbio.com.
Forward Looking StatementsStatements contained
in this press release regarding matters that are not historical
facts are "forward-looking statements" within the meaning of the
Private Securities Litigation Reform Act of 1995. Because such
statements are subject to risks and uncertainties, actual results
may differ materially from those expressed or implied by such
forward-looking statements. Such statements include, but are not
limited to, statements regarding the impact of new leadership team
members, Equillium’s ability to sell additional shares of its
common stock to Lincoln Park, Equillium’s business strategy,
Equillium’s plans and expected timing for developing itolizumab,
including the expected timing of results from the EQUATE clinical
trial, the potential benefits of itolizumab, Equillium’s cash
runway and the impact of the COVID-19 pandemic. Risks that
contribute to the uncertain nature of the forward-looking
statements include: uncertainties related to the abilities of new
leadership team members to integrate and perform as expected,
uncertainties related to Equillium’s capital requirements,
Equillium’s ability to satisfy the conditions of the Lincoln Park
agreement, Equillium’s plans and product development, including the
initiation, restarting and completion of clinical trials,
uncertainties related to the actual impacts and length of such
impacts caused by the COVID-19 pandemic, uncertainties caused by
the pausing of the EQUIP and EQUALISE clinical trials, whether the
results from clinical trials will validate and support the safety
and efficacy of itolizumab, having to use cash in ways or on timing
other than expected and the impact of market volatility on cash
reserves. These and other risks and uncertainties are described
more fully under the caption "Risk Factors" and elsewhere in
Equillium's filings and reports with the United States Securities
and Exchange Commission. All forward-looking statements contained
in this press release speak only as of the date on which they were
made. Equillium undertakes no obligation to update such statements
to reflect events that occur or circumstances that exist after the
date on which they were made.
Investor Contact+1-858-412-5302ir@equilliumbio.com
Media ContactCammy DuongCanale
Communications+1-619-849-5389cammy@canalecomm.com
Equillium,
Inc. |
|
Condensed
Consolidated Balance Sheets |
|
(In
thousands) |
|
|
|
|
|
|
|
March 31, |
|
December 31, |
|
|
2020 |
|
2019 |
|
|
(Unaudited) |
|
|
|
Cash, cash equivalents and short-term investments |
$ |
47,675 |
|
$ |
53,143 |
|
Prepaid
expenses and other assets |
|
2,236 |
|
|
2,396 |
|
Total assets |
$ |
49,911 |
|
$ |
55,539 |
|
Current
liabilities |
|
3,711 |
|
|
3,883 |
|
Long-term
notes payable |
|
9,746 |
|
$ |
9,681 |
|
Other
non-current liabilities |
|
108 |
|
|
127 |
|
Total
stockholders' equity |
|
36,346 |
|
|
41,848 |
|
Total liabilities and stockholders' equity |
$ |
49,911 |
|
$ |
55,539 |
|
|
|
|
|
|
Equillium,
Inc. |
Condensed
Consolidated Statements of Operations |
(In
thousands, except share and per share data) |
|
|
|
Three Months EndedMarch 31, |
|
2020 |
|
2019 |
|
|
|
(unaudited) |
Operating expenses: |
|
|
|
Research and development |
$ |
4,706 |
|
|
$ |
3,759 |
|
General and administrative |
|
2,746 |
|
|
|
2,589 |
|
Total operating expenses |
|
7,452 |
|
|
|
6,348 |
|
Loss from operations |
|
(7,452 |
) |
|
|
(6,348 |
) |
Other (expense) income, net |
|
(385 |
) |
|
|
398 |
|
Net loss |
$ |
(7,837 |
) |
|
$ |
(5,950 |
) |
Net loss per common share, basic and diluted |
$ |
(0.45 |
) |
|
$ |
(0.34 |
) |
Weighted-average number of common shares outstanding, basic and
diluted |
|
17,562,551 |
|
|
|
17,376,236 |
|
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