Equillium — Third Quarter 2026 Earnings Summary

Financial Performance:

• Cash and cash equivalents totaled $53.3 million as of September 30, 2026, compared to $33.1 million as of September 30, 2025.
• Pro forma cash balance was approximately $72.0 million after accounting for $20 million in gross financing received in October 2026.
• Research and development expenses were $2.5 million for the third quarter of 2026, an increase from $1.3 million in the same period in 2025.
• General and administrative expenses were $2.6 million for the third quarter of 2026, a decrease from $3.3 million in the same period in 2025.
• Net loss for the third quarter of 2026 was $4.6 million, or $(0.04) per basic and diluted share, compared to a net loss of $4.2 million, or $(0.06) per basic and diluted share in the same period in 2025.
• Cash runway is expected to extend into 2029.

Guidance and Future Outlook:

• Equillium expects to report proof-of-mechanism data from the Phase 1 clinical trial of EQ504 in the second quarter of 2027.
• The company plans to initiate a placebo-controlled proof-of-concept study in patients with moderately to severely active ulcerative colitis in the second half of 2027, subject to supportive Phase 1 results.
• Management expects its financial position and cash runway to be sufficient to fund currently planned operations into 2029.

Business Segments and Product Lines:

• Initiated a first-in-human, randomized, double-blind, placebo-controlled Phase 1 clinical trial for EQ504 in Australia in October 2026, evaluating single and multiple ascending doses in approximately 70 healthy participants.
• The Phase 1 trial is designed to characterize safety, tolerability, pharmacokinetics, pharmacodynamics, and establish proof of mechanism, including longitudinal gastrointestinal mucosal biopsies to assess AhR target engagement.
• EQ504 is an investigational aryl hydrocarbon receptor (AhR) modulator designed with a multi-modal immunoregulatory mechanism without broad immune suppression.
• For ulcerative colitis, EQ504 is formulated as an oral, colon-targeted delayed-release drug product.
• Equillium is evaluating EQ504 for additional indications, including inflammatory lung diseases via inhaled formulations.
• Presented new nonclinical data at the 7th International AHR Conference and the 50th Anniversary La Jolla Immunology Conference characterizing EQ504's effects on epithelial barrier repair and immune regulation.

Market and Competitive Landscape:

• EQ504's mechanism of action is differentiated by its ability to address key epithelial and immune pathways involved in inflammatory disease without broad immune suppression.
• The drug is designed to be complementary to other inflammation and immunology agents.

Risks and Challenges:

• Actual results may differ materially from forward-looking statements due to risks including the ability to execute plans, perform clinical and nonclinical studies, and validate safety and efficacy.
• Risks include reliance on pro forma financial information, changes in the competitive landscape, and the ability to raise sufficient financing on acceptable terms or at all.
• Future clinical results may not support the safety and efficacy of product candidates.

Management Commentary and Tone:

• CEO Bruce Steel stated that initiating clinical development for EQ504 marks a significant milestone and that the company remains focused on advancing the therapy to patients.
• Management expressed confidence in EQ504's differentiated mechanism to address epithelial and immune pathways involved in inflammatory disease.
• The company highlighted its strong financial position as a support for advancing EQ504.

Other Key Points:

• On October 26, 2026, Equillium closed the second tranche of its August 2025 equity private placement agreement, resulting in aggregate gross proceeds of approximately $20 million.
• The closing of the $20 million financing was concurrent with the first patient dosed in the Phase 1 clinical trial of EQ504.