In a report released on March 25, Thomas Smith from Leerink Partners reiterated a Buy rating on Equillium (EQ – Research Report), with a price target of $7.00.
Thomas Smith has given his Buy rating due to a combination of factors including the advancement of Equillium’s clinical programs and the anticipated data from their Phase 2 study of EQ101. The focus on the upcoming topline data from the study in subjects with moderate to severe alopecia areata (AA), which is expected in 2Q24, is a key driver for the positive outlook. Smith believes that early signals of efficacy, particularly in eyebrow and eyelash regrowth, as well as improvements in SALT scores, could significantly enhance the stock’s value.
Additionally, there is optimism surrounding the delivery of Phase 1b trial results for itolizumab in lupus nephritis to Ono Pharmaceuticals and the interim review of the Phase 3 EQUATOR trial for acute graft-versus-host disease. These events, coupled with the potential for a substantial payment from Ono should they exercise their option for itolizumab, provide further support for the stock’s Buy rating. Smith anticipates that these catalysts, particularly the AA data for EQ-101, have the potential to unlock fundamental value for Equillium’s shares and offer additional momentum from the possible financial benefits later in the year.
Smith covers the Healthcare sector, focusing on stocks such as Celldex, Madrigal Pharmaceuticals, and Viridian Therapeutics. According to TipRanks, Smith has an average return of 39.7% and a 48.86% success rate on recommended stocks.
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Equillium (EQ) Company Description:
Equillium, Inc. is a biotechnology company, which engages in the development of products for severe immuno-inflammatory disorders with high unmet medical need. Its product pipeline include EQ001, is a monoclonal antibody that selectively targets the novel immune checkpoint receptor CD6. The company was founded by Daniel Mark Bradbury, Bruce D. Steel, and Stephen Connelly on March 16, 2017 and is headquartered in La Jolla, CA.
