Autoimmune Biotech Scores $26M Payment, Up To $139M To Advance Phase 3 Research

Equillium Inc EQ announced an option and asset purchase agreement through which Ono Pharmaceutical Co Ltd gains the exclusive option to purchase Equillium's rights to itolizumab.
These rights include all therapeutic indications and the rights to commercialize itolizumab in the U.S., Canada, Australia, and New Zealand.
Through this partnership, Equillium has secured the resources necessary to continue advancing the Phase 3 EQUATOR study of itolizumab in the treatment of first-line acute graft-versus-host disease and ongoing EQUALISE study in lupus nephritis.
Related: Equillium Shares Ride Higher After Positive Data From Lead Asset In Kidney Inflammation.
Based on the current operating plan, the company expects this strategic partnership to enable it to fund operations into 2025.
Equillium will receive an upfront payment of approximately $26 million (¥3.5 billion) and will also be eligible to receive up to an aggregate of approximately $138.5 million (¥18.7 billion) for the exercise of the option and milestone payments from development through the first commercial sale.
Equillium will conduct all research and development of itolizumab, which will be fully funded by Ono on a quarterly basis commencing July 1, 2022, through the option period.
In September, Equillium agreed to acquire Metacrine Inc MTCR in an all-stock transaction.
Price Action: EQ shares are up 0.12% at $1.65 on the last check Tuesday.