Equillium has secured a securities purchase agreement with leading healthcare investors to raise to $50 million. The financing includes an upfront payment of $30 million for approximately 52.6 million shares or pre-funded warrants at $0.57 per share, plus an additional $20 million contingent upon meeting specific milestones. New investors include ADAR1 Capital Management, Janus Henderson Investors, Adage Capital Partners, Coastlands Capital, and Woodline Partners.
The company’s research focuses on modulating the aryl hydrocarbon receptor (AhR), which is crucial for maintaining organ barrier function and regulating the immune response. AhR modulation induces the cytokines IL-10 and IL-22, aiding in the control of inflammation and tissue regeneration. Drugs like tapinarof and indigo naturalis validate AhR therapy in skin and GI diseases, while Abivax SA’s obefazimod in ulcerative colitis shows similar activity.
The funds will support EQ504 development, working capital, and general corporate needs. Equillium will not pursue its cryptocurrency treasury reserve strategy at this time. Proceeds from the initial closing are projected to fund operations through 2027.
Support: Leerink Partners is acting as lead placement agent in connection with the financing, and LifeSci Capital is acting as co-placement agent.
KEY QUOTES:
“We’re delighted to have the support of such a strong syndicate of top-tier biotech investors who share our vision for advancing transformative therapies for patients. This funding marks a significant milestone for Equillium, enabling us to accelerate the clinical development of EQ504 into a Phase 1 proof-of-mechanism study in mid-2026, with data expected to follow approximately six months thereafter.”
Bruce Steel, Chief Executive Officer of Equillium
“IL-10 and IL-22 are both powerful cytokines that are the basis of many drug development programs. In combination, we believe that their induction through AhR modulation affords a differentiated, multi-modal and non-immunosuppressive approach to treating tissue inflammation. We intend to develop EQ504 as a novel oral, colon-targeted treatment that we believe has the potential to make a meaningful impact in the treatment for ulcerative colitis and pouchitis, and we’re excited to advance this program into the clinic.”
Dr. Stephen Connelly, Chief Scientific Officer of Equillium
