Equillium and Metacrine Mutually Agree to Terminate Definitive Merger Agreement
December 23 2022 - 4:01PM
Business Wire
Equillium, Inc. (Nasdaq: EQ) and Metacrine, Inc. today announced
the mutual termination of their previously announced definitive
merger agreement.
“Equillium first set out to acquire Metacrine in an all-stock
transaction in early 2022, with the intent of adding cash runway in
a very difficult financing market,” said Bruce Steel, chief
executive officer of Equillium. “However, our recent strategic
partnership with Ono Pharmaceutical is expected to extend our cash
runway into 2025, and possibly further with potential option
exercise and milestone payments. We therefore find ourselves in a
strong financial position, and with our pipeline of wholly-owned
multi-cytokine inhibitors in the clinic we are excited about the
opportunity to unlock value in our programs during 2023 and
beyond.”
Additional information regarding the termination of the
definitive merger agreement is set forth in a Current Report on
Form 8-K filed by Equillium with the Securities and Exchange
Commission today and is available at www.sec.gov and on Equillium’s
website under the heading “Investors.”
About Equillium
Equillium is a clinical-stage biotechnology company leveraging a
deep understanding of immunobiology to develop novel therapeutics
to treat severe autoimmune and inflammatory disorders with high
unmet medical need. The company’s pipeline consists of the
following novel first-in-class immunomodulatory assets targeting
immuno-inflammatory pathways. EQ101: a tri-specific cytokine
inhibitor that selectively targets IL-2, IL-9, and IL-15; currently
under evaluation in a Phase 2 proof-of-concept study of patients
with alopecia areata. EQ102: a bi-specific cytokine inhibitor that
selectively targets IL-15 and IL-21; currently under evaluation in
a Phase 1 study to include healthy volunteers and celiac disease
patients. Itolizumab: a monoclonal antibody that targets the
CD6-ALCAM signaling pathway which plays a central role in the
modulation of effector T cells; currently under evaluation in a
Phase 3 study for patients with acute graft-versus-host disease
(aGVHD) and a Phase 1b study for patients with lupus/lupus
nephritis. Equillium acquired rights to itolizumab through an
exclusive partnership with Biocon Limited and has entered a
strategic partnership with Ono Pharmaceutical Co., Ltd. for the
development and commercialization of itolizumab under an exclusive
option and asset purchase agreement.
For more information, visit www.equilliumbio.com.
Forward Looking Statements
Statements 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. Forward-looking statements may be identified by the use of
words such as "anticipate", "believe", “could”, “continue”,
"expect", "estimate", “may”, "plan", "outlook", “future” and
"project" and other similar expressions that predict or indicate
future events or trends or that are not statements of historical
matters. Because such statements are subject to risks and
uncertainties, many of which are outside of Equillium’s control,
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 potential
benefits and risks of the transactions contemplated by the option
and asset purchase agreement entered into by Equillium and Ono,
including the possibility that Ono does not exercise the option,
Equillium receives no further payments under the option and asset
purchase agreement, the possibility that, if commercialized,
itolizumab proves to be more valuable than contemplated by the
option and asset purchase agreement, the benefit of treating
patients with aGVHD or lupus/lupus nephritis with itolizumab,
Equillium’s plans and expected timing for developing itolizumab,
Equillium’s plans and expected timing for developing EQ101 and
EQ102 including the expected timing of initiating, completing and
announcing further results from Phase 2 and Phase 1 studies,
respectively, the potential for any of Equillium’s ongoing or
planned clinical studies to show safety or efficacy, Equillium’s
anticipated timing of regulatory review and feedback, Equillium’s
cash runway, and Equillium’s plans and expected timing for
developing its product candidates and potential benefits of its
product candidates. Risks that contribute to the uncertain nature
of the forward-looking statements include: uncertainties related to
the abilities of the leadership team to perform as expected;
Equillium’s ability to execute its plans and strategies; risks
related to performing clinical studies; the risk that interim
results of a clinical study do not necessarily predict final
results and that one or more of the clinical outcomes may
materially change as patient enrollment continues, following more
comprehensive reviews of the data, and as more patient data become
available; potential delays in the commencement, enrollment and
completion of clinical studies and the reporting of data therefrom;
the risk that studies will not be completed as planned; Equillium’s
plans and product development, including the initiation and
completion of clinical studies and the reporting of data therefrom;
whether the results from clinical studies will validate and support
the safety and efficacy of Equillium’s product candidates; risks
related to Ono’s financial condition, willingness to continue to
fund the development of itolizumab, and decision to exercise, if
ever, its option to purchase itolizumab or terminate the option and
asset purchase agreement; changes in the competitive landscape;
uncertainties related to Equillium’s capital requirements; and
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, which
may be accessed for free by visiting the Securities and Exchange
Commission’s website at www.sec.gov and on Equillium’s website
under the heading “Investors.” Investors should take such risks
into account and should not rely on forward-looking statements when
making investment decisions. 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, except as required by
law.
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version on businesswire.com: https://www.businesswire.com/news/home/20221223005200/en/
Investor & Media Contact Equillium, Inc. Michael
Moore Vice President, Investor Relations Officer & Head of
Corporate Communications 619-302-4431 ir@equilliumbio.com
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