Upcoming Catalysts:
| | • | | Initiation of a global trial of itolizumab in hospitalized patients with COVID-19 |
| | • | | Advancing ongoing EQUATE, EQUIP and EQUALISE trials |
Second Quarter 2020 Financial Results
Research and development (R&D) expenses. Total R&D expenses for the three months ended June 30, 2020 were $3.9 million, compared with $4.3 million for the same period in 2019. The decrease in R&D expenses was primarily the result of lower clinical development expense driven by the higher startup costs incurred for the EQUIP trial in the second quarter of 2019 as well as the pausing of that study during the second quarter of 2020 due to the COVID-19 pandemic. Other contributors to the decrease in R&D expenses included lower consulting and travel expenses, offset by an increase in employee compensation and benefits primarily related to increased headcount.
General and administrative (G&A) expenses. Total G&A expenses for the three months ended June 30, 2020 were $2.7 million, compared with $2.2 million for the same period in 2019. The increase in G&A expenses was primarily driven by greater non-cash stock-based compensation expense, offset by decreases in outside legal expenses, salaries, and travel.
Net loss. Net loss for the three months ended June 30, 2020 was $6.5 million, or $(0.37) per basic and diluted share, compared with a net loss of $6.1 million, or $(0.35) 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 $42.6 million at June 30, 2020, compared to $53.1 million at December 31, 2019.
Cash used in operations. Equillium used approximately $5.1 million of cash in its operations during the three months ended June 30, 2020, compared to $6.3M in the prior quarter ended March 31, 2020.
About Equillium
Equillium is a clinical-stage biotechnology company leveraging deep understanding of immunobiology to develop novel 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 has been clinically validated with a favorable safety and tolerability profile based on its approved uses in India. Equillium acquired rights to itolizumab through an exclusive partnership with Biocon. Biocon manufactures EQ001 and ALZUMAb at an FDA-regulated commercial scale facility; both products share the same primary monoclonal antibody sequence, but are manufactured in different cell lines, and EQ001 is available in both intravenous and subcutaneous dosing whereas ALZUMAb is currently available in intravenous dosing only. Biocon has recently reported results from a study of ALZUMAb in COVID-19 patients in India, and has subsequently received emergency use authorization from the Drugs Controller General of India for ALZUMAb for the treatment of CRS in COVID-19 patients with moderate to severe ARDS in India.
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