NASDAQ$EQ

Equillium Inc · Q4 2022 earnings

Q4 2022 earnings · · Investor relations

Briefing

Equillium reported financial results for the fourth quarter and full year 2022 and provided corporate and clinical development updates.

Equillium reported Q4 2022 revenue of $15.8 million derived from the asset purchase agreement with Ono, and a net income of $2.8 million, or $0.08 per basic and diluted share. The company's cash balance at the end of 2022 was $71.0 million, expected to provide cash runway into 2025. Equillium also highlighted the acquisition of Bioniz Therapeutics and a strategic partnership with Ono Pharmaceutical.

  • Equillium achieved several significant objectives during 2022, transforming into a company with a diversified pipeline.
  • Bioniz Therapeutics was acquired, expanding the pipeline with EQ101 and EQ102, which have advanced into clinical studies.
  • A strategic partnership with Ono Pharmaceutical was secured for itolizumab, providing payments and funding to Equillium.
  • Equillium anticipates data from EQ101 and EQ102 development programs and will continue to advance itolizumab under the Ono partnership.

Headline financials

Total Revenue

$15.8M

No prior period
EPS (adj)

$0.08

Previous: -$0.36+122.2%
Capital Expenditures

$2K

No prior period
Free Cash Flow

$27.7M

Previous: -$10.1M+373.6%
Net Income

$2.8M

Previous: -$10.6M+126.4%
Operating Income

$2.04M

Previous: -$10.4M+119.7%
Gross Profit

$15.7M

No prior period
Cash & Equivalents

$71M

Previous: $80.7M-12.0%
Total Assets

$78.4M

Previous: $85.4M-8.2%
Stock-Based Comp

$1.05M

Previous: $1.15M-8.7%

Revenue & EPS history

Equillium · Revenue · Quarterly

$15.8M

Q4 2022
Beat estimate in 6 of 8 quarters(75%)
ActualEstimate

Forward guidance

Equillium expects to fund operations into 2025 based on a strong cash balance and reduced operating burn from the Ono partnership.

Tailwinds

  • EQ101: Phase 2 clinical study in subjects with alopecia areata – initial data anticipated in 2H 2023, topline data anticipated in mid-2024
  • EQ102: Phase 1 first-in-human study in healthy volunteers and subjects with celiac disease – SAD/MAD data anticipated in 2H 2023, celiac disease patient data anticipated in 2024
  • Itolizumab: EQUALISE lupus nephritis topline data anticipated in 1H 2024
  • Itolizumab: EQUATOR aGVHD interim review anticipated in 2024
  • Cash balance of $71.0 million expected to provide cash runway into 2025

Headwinds

  • Potential delays in the commencement, enrollment and completion of clinical studies and the reporting of data therefrom
  • The risk that studies will not be completed as planned
  • Risks related to Ono’s financial condition, willingness to continue to fund the development of itolizumab, and decision to exercise its option to purchase itolizumab or terminate the asset purchase agreement
  • Uncertainties related to Equillium’s capital requirements
  • Having to use cash in ways or on timing other than expected and the impact of market volatility on cash reserves

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 19 quarterly earnings reports · overlaid with Q4 2022

Historical avgQ4 2022

+1.0%

Avg return

Earnings day

-0.2%

Avg return

5 days after

-1.3%

Avg return

30 days after

55%

17 / 31 earnings

Positive

+42.0%

Q3 2020

Best reaction

-27.0%

Q4 2023

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q4 2025+1.8%-18.9%
Q3 2025+23.8%+20.2%+52.4%
Q2 2025+16.3%+16.3%+90.8%
Q1 2025+5.4%+5.4%-5.4%
Q1 2026+5.4%+5.4%-5.4%
Q4 2024-2.5%-10.0%-16.0%
Q3 2024-19.5%-20.0%-17.6%
Q2 2024-4.6%+0.0%+27.4%
Q1 2024-10.0%-9.4%-52.9%
Q4 2023-27.0%-18.1%-36.5%
Q3 2023-1.8%+0.0%+22.0%
Q2 2023+3.9%+2.6%+6.5%
Q1 2023+3.6%+7.1%+17.9%
Q4 2022+12.3%+10.8%-4.6%
Q3 2022+6.5%+5.9%-28.2%
Q2 2022+1.4%-1.8%-25.5%
Q1 2022+3.7%+13.8%+0.0%
Q4 2021+0.0%-9.1%-10.3%
Q3 2021-13.6%-14.5%-27.0%
Q2 2021+2.7%+2.2%-2.4%
Q1 2021+6.1%+22.3%+19.0%
Q4 2020-8.5%-12.7%-19.5%
Q3 2020+42.0%+27.6%+34.1%
Q2 2020-12.8%-29.7%-45.0%
Q1 2020-14.9%-20.6%-19.7%
Q4 2019-1.1%+2.3%+7.5%
Q3 2019-1.2%+7.1%+45.7%
Q2 2019-0.5%+7.1%-0.5%
Q1 2019+2.0%+2.5%+0.3%
Q4 2018+6.1%+9.2%-20.2%
Q3 2018+6.4%-8.7%-24.5%
Q2 2018
Q1 2018
Q4 2017
Q3 2017
Q2 2017

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