Equillium Reports Zero Revenue and $5.7 Million Net Loss in Q2 2025

Equillium, Inc. reported significant financial challenges in its latest 10-Q filing for the quarter ending June 30, 2025. The company recorded no revenue during the quarter, a stark contrast to the $13.9 million generated in the same period last year. For the first half of 2025, Equillium's revenue remained at zero, down from $24.5 million in the first half of 2024. The absence of revenue is attributed to the expiration of an Asset Purchase Agreement with Ono Pharmaceutical Co., Ltd., which had previously provided funding for the development of itolizumab (EQ001).

Operating expenses for the second quarter of 2025 totaled $6.2 million, a decrease from $14 million in the same quarter of 2024. This reduction was primarily due to lower research and development costs, which fell to $4.1 million from $10.8 million year-over-year, as the company paused its clinical studies pending capital acquisition. General and administrative expenses also decreased to $2.1 million from $3.1 million. Despite these reductions, Equillium reported a net loss of $5.7 million for the quarter, compared to a net income of $468,000 in the prior year.

As of June 30, 2025, Equillium's total assets were valued at $12.4 million, a significant decline from $25.6 million at the end of 2024. The company's cash and cash equivalents decreased to $11.5 million from $18.1 million, raising concerns about its liquidity. The accumulated deficit has now reached $208.2 million, reflecting ongoing financial strain. The company has indicated that it will need to raise additional capital to continue its operations and fund research and development activities.

In terms of strategic developments, Equillium has entered into a Securities Purchase Agreement with institutional investors, which is expected to provide approximately $30 million in gross proceeds. This funding is intended to support the development of EQ504, a novel aryl hydrocarbon receptor modulator, with plans to initiate a Phase 1 study by mid-2026. The company has also indicated that it is exploring partnerships to advance its pipeline, particularly for EQ302, a preclinical-stage product candidate.

Looking ahead, Equillium anticipates continued operating losses as it seeks to resume development activities and potentially expand its product pipeline. The company has expressed confidence that the recent capital raise will extend its cash runway through 2027, but it remains uncertain when it will generate revenue from product sales. The management has acknowledged the challenges posed by market conditions and the need for strategic decisions to ensure the company's viability in the competitive biotechnology landscape.