Equillium Inc (NASDAQ:EQ), with only one asset in its pipeline, is expanding its drug development efforts via the acquisition of Bioniz Therapeutics. The deal, worth approximately $330 million, gives the biotech access to three therapeutics.
- Equillium will buy Bioniz in an all-stock deal for around 5.69 million shares and up to $57.5 million in development biobucks. The deal is further backloaded by up to $250 million in commercial milestone payments.
- Bioniz's cytokine inhibitor BNZ-1 completed a Phase 1/2 study in cutaneous T-cell lymphoma (CTCL), meeting its primary objective of safety and tolerability.
- The drug is being considered for a Phase 2/3 trial in CTCL and a midstage study in alopecia areata, or balding.
- The acquisition also gives Equillium access to BNZ-2, an inhibitor of IL-15 and IL-21, that is ready for a phase 1 trial in patients with celiac disease.
- Further, Bioniz has BNZ-3, another IL-15 and IL-21 inhibitor in preclinical development for potential use in treating gastrointestinal inflammation.
- Equillium is testing itolizumab in acute graft-versus-host disease and lupus nephritis.
- Last month, the Company decided to stop testing the drug in patients with uncontrolled asthma despite passing safety and tolerability in a phase 1b trial.
- Price Action: EQ shares are up 3.50% at $4.14 during the market session on the last check Wednesday.
