- Olumiant (baricitinib), a Janus kinase (JAK) inhibitor, was developed by Incyte Corp (NASDAQ:INCY) and launched in collaboration with Eli Lilly And Co (NYSE:LLY), received FDA approval for hair loss disorder known as alopecia areata (AA).
- Olumiant was first approved for the treatment of rheumatoid arthritis (RA) in 2018.
- The above nod is expected to provide a template for Equillium Inc (NASDAQ:EQ) EQ-101 in this indication, says HC Wainwright.
- Related: Lilly-Incyte Snag FDA Nod For Patchy Hair Loss Treatment — Smaller Rival's Stock Shoots Up In Sympathy.
- The analysts write that the size and design of the pivotal trials with baricitinib in AA are manageable and should prove relatively cost-effective if EQ-101 is advanced into Phase 3 studies.
- EQ-101's niche to exploit impact on AA may be eclipsed even after clinically meaningful and competitive data, as JAK inhibitors have come under scrutiny for safety reasons.
- The analysts reiterate a Buy rating and a price target of $15 per share on EQ.
- "From our vantage point, investors continue to ignore the potential of the Bioniz portfolio that Equillium acquired earlier this year, including EQ-101," writes HC Wainwright.
- Related: Equillium Adds Three Drugs To Its Pipeline Via Bioniz Acquisition.
- Price Action: EQ shares are up 2.97% at $2.08 during the market session on the last check Tuesday.
