Equillium (EQ) Stock Price Target Gets a Big Boost; Here’s What You Need to Know

Headline grabbing biotechs are far from a rare sight in 2020. Nevertheless, when a little-known micro-cap pops by 730% in a single trading session, avid market followers are likely to take notice.

<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="And so to Equillium (EQ), the aforementioned little known biotech, whose shares blasted off on Monday.” data-reactid=”13″>And so to Equillium (EQ), the aforementioned little known biotech, whose shares blasted off on Monday.

The rally began following the announcement that the Drugs Controller General of India – India’s equivalent of the FDA – granted Equillium’s partner Biocon emergency approval for itolizumab, a treatment of cytokine release syndrome (CRS) in COVID-19 patients with acute respiratory distress syndrome (ARDS).

The approval came following a 30-patient proof-of-concept trial in which the drug reduced mortality in hospitalized COVID-19 patients (all patients given the drug survived).

The drug is currently being developed as a treatment for various autoimmune and inflammatory diseases. However, Equillium now plans to file an investigational new drug (IND) application so it can proceed with a clinical trial of itolizumab in COVID-19 patients in the US.

<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="H.C. Wainwright analyst Ram Selvaraju believes progress could be fast once the wheels are set in motion.” data-reactid=”17″>H.C. Wainwright analyst Ram Selvaraju believes progress could be fast once the wheels are set in motion.

“In our view,” said the 5-star analyst, “itolizumab could be developed rapidly using a similar trial design in a larger patient group—perhaps no more than 200-400 subjects—with a randomized, double-blinded, controlled approach. Such a trial program in the U.S. could be accomplished involving only 10-12 centers and might cost under $10M to execute. If started in the next several weeks, we believe such a trial could yield results in early 4Q20 and facilitate either accelerated approval or Emergency Use Authorization from the FDA before year-end.”

Selvaraju estimates that the “penetration rate” in the U.S. for the treatment won’t exceed 3.5%, as the patients eligible to receive itolizumab –  those with specific types of immunological and respiratory complications – make up less than 15% of all COVID-19-infected patients.

The analyst reckons the treatment will sell for approximately $1,750 per course, and could notch “potential peak sales of over $500 million in the U.S. market by 2022,” after which sales are expected to decline as the pandemic gradually retreats.

<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="To this end, Selvaraju boosts his price target on EQ to $24 (from $14), which implies about 70% upside from current levels. (To watch Selvaraju’s track record, click here)” data-reactid=”21″>To this end, Selvaraju boosts his price target on EQ to $24 (from $14), which implies about 70% upside from current levels. (To watch Selvaraju’s track record, click here)

<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="Only one other analyst has posted an EQ review over the last 3 months, also recommending a Buy. (See Equillium stock analysis on TipRanks)” data-reactid=”22″>Only one other analyst has posted an EQ review over the last 3 months, also recommending a Buy. (See Equillium stock analysis on TipRanks)

<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="To find good ideas for healthcare stocks trading at attractive valuations, visit TipRanks’ Best Stocks to Buy, a newly launched tool that unites all of TipRanks’ equity insights.” data-reactid=”31″>To find good ideas for healthcare stocks trading at attractive valuations, visit TipRanks’ Best Stocks to Buy, a newly launched tool that unites all of TipRanks’ equity insights.

Visit the Source: https://finance.yahoo.com/news/equillium-eq-stock-price-target-154743571.html

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