LA JOLLA, Calif. — March 13, 2026 — Leads & Copy — Equillium, Inc. (Nasdaq: EQ) announced it has entered a definitive securities purchase agreement with RA Capital Management that will provide approximately $35 million in gross proceeds to Equillium.
The company plans to use the funds to advance clinical development of EQ504, for working capital, and for general corporate purposes. Equillium anticipates the net proceeds, along with existing cash and cash equivalents, will extend its cash runway into 2029.
Under the agreement, Equillium will issue approximately 18.9 million shares of its common stock. This includes shares of common stock underlying pre-funded warrants, representing a purchase price of $1.854 for each share of common stock (the average closing price for the five trading days before the financing) or $1.8539 for each pre-funded warrant sold in lieu of common stock at closing. The gross proceeds are expected to be $35 million before deducting expenses.
Equillium is developing EQ504 to target the colon, and believes it represents a next-generation therapeutic to treat Ulcerative Colitis (UC) locally. The company believes EQ504 has broad therapeutic potential in UC as a standalone oral therapy or in combination with other therapeutic approaches. EQ504 is an investigational potent and selective aryl hydrocarbon receptor (AhR) modulator that Equillium is developing to be administered orally.
Bruce Steel, Chief Executive Officer of Equillium, stated that the financing strengthens the company’s balance sheet and supports continued progress of EQ504 through its clinical development plan. He added that it is expected to fund company operations into 2029. Steel also said that RA Capital Management’s investment underscores confidence in their strategy and enables them to remain focused on disciplined execution of their upcoming EQ504 clinical objectives.
LifeSci Capital is acting as Equillium’s financial advisor.
The offer and sale of the securities to be issued in the private placement are being made in a transaction not involving a public offering and have not been registered under the Securities Act of 1933, as amended, or any applicable state securities laws. The securities may not be offered or sold in the United States except pursuant to an effective registration statement or an applicable exemption from the registration requirements of the Securities Act and state securities laws. RA Capital Management has been granted customary resale Form S-3 registration rights for the shares of common stock issued to them in connection with the financing.
Equillium is a biotechnology innovator developing novel therapies to treat severe autoimmune and inflammatory disorders. EQ504 is designed with a multi-modal, non-immunosuppressive mechanism of action to be complementary to other inflammation and immunology agents. It has potential for targeted, local delivery via enteric coating for the treatment of ulcerative colitis and other gastrointestinal diseases or inhaled formulations for the treatment of inflammatory lung diseases.
Source: Equillium, Inc.
