Equillium, a biotechnology company developing therapies for severe autoimmune and inflammatory disorders, announced it has raised $35 million through a private investment in public equity (PIPE) financing led by RA Capital Management.
Under the terms of the agreement, the company will issue approximately 18.9 million shares of common stock, including shares underlying pre-funded warrants, at a purchase price of $1.854 per share. The price reflects the average closing price of Equillium’s stock over the five trading days preceding the financing announcement. The transaction is expected to generate about $35 million in gross proceeds before expenses.
Equillium plans to use the proceeds to support the clinical development of EQ504, its investigational therapy targeting ulcerative colitis, as well as for working capital and general corporate purposes. The company said the new capital, together with existing cash and equivalents, is expected to extend its operating runway into 2029.
EQ504 is a selective aryl hydrocarbon receptor (AhR) modulator designed to be administered orally and targeted to the colon. Equillium is developing the therapy as a potential next-generation treatment for ulcerative colitis that could be used either as a standalone oral therapy or in combination with other treatments.
LifeSci Capital served as financial advisor to Equillium for the transaction.
KEY QUOTES
“This financing strengthens our balance sheet and supports continued progress of EQ504 through its clinical development plan and is expected to fund company operations into 2029. RA Capital Management’s investment underscores confidence in our strategy and enables us to remain focused on disciplined execution of our upcoming EQ504 clinical objectives.”
Bruce Steel, Chief Executive Officer Of Equillium
