Cantor Fitzgerald launched coverage of Equillium (NASADQ:EQ) with an “overweight” rating and $14 price target. The stock closed at $5.40 on Sept. 14.
Equillium is developing itolizumab, its novel CD6 targeted monoclonal antibody for multiple immuno-inflammatory diseases. The lead indication is acute graft-versus-host disease (aGvHD), where the company plans to initiate a pivotal study by year-end 2021.
Analyst Emma Nealon writes that the recent acquisition of Kadmon Holdings (NASDAQ:KDMN) by Sanofi for $1.9-billion as “validation of the potential market opportunity and Big Pharma interest in GvHD therapies.”
Ms. Nealon said that while the initial market opportunity in acute GvHD is likely smaller than in chronic GvHD where Kadmon’s Rezurock is approved, “we think the market is underappreciating the many potential expansion opportunities for this novel immune-regulating mechanism.”
Beyond aGvHD, she said Equillium is nearing two important Phase 1b proof-of-concept readouts in lupus and asthma in the fourth quarter of 2021, “where we see significant upside potential if one or both are successful.”
