Equillium (EQ) stock climbed higher on Monday after the clinical-stage biotechnology company announced a $50 million private placement. This private placement comes in two payments: an upfront payment of $30 million in exchange for 52.6 million EQ shares, and another $20 million for 35.1 million shares if certain milestones are met. It expects the initial financing to extend its cash runway through 2027.
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The funds from this private placement will be used to progress Equillium’s development of EQ504, as well as for working capital and general corporate purposes. EQ504 is a treatment in development for ulcerative colitis and pouchitis. The company plans to start a Phase 1 clinical trial of the drug next year.
Equillium Stock Movement Today
Equillium stock was up 140.31% in pre-market trading on Monday, following a 10.45% drop on Friday. The shares were down 33.97% year-to-date and 31.22% over the past 12 months. Today’s news came with heavy trading, as some 61 million shares changed hands, compared to a three-month daily average of about 5.81 million units.
Is Equillium Stock a Buy, Sell, or Hold?
Turning to Wall Street, coverage of Equillium is thin. Fortunately, TipRanks’ AI analyst Spark has it covered. Spark rates EQ stock a Neutral (51). It cites “mixed financial performance with significant revenue growth” as reasons for this stance.
