Equillium, Inc. announced on October 26, 2026, that the first subject has been dosed in a Phase 1 clinical trial of its investigational drug candidate EQ504 in Australia. This dosing event triggered a milestone closing under a previously announced equity private placement agreement, resulting in an additional $20 million in gross proceeds for the company.
The Phase 1 trial, identified by clinical trial number NCT07869225, is a randomized, double-blind, placebo-controlled study conducted at a single center in Australia. The study aims to evaluate the safety, tolerability, pharmacokinetics, and pharmacodynamics of EQ504 in approximately 70 healthy subjects. The trial consists of a single ascending dose portion evaluating escalating oral doses ranging from 0.1 to 3.0 mg across five cohorts, and a multiple ascending dose portion evaluating once-daily dosing over 10 days across three cohorts. The study will also include an optional food-effect cohort and utilize gastrointestinal mucosal biopsies to measure biomarkers of target engagement.
EQ504 is an investigational oral, colon-targeted aryl hydrocarbon receptor (AhR) modulator being developed for serious inflammatory diseases, including ulcerative colitis. The company anticipates topline proof-of-mechanism data from the Phase 1 trial in the second quarter of 2027.
In connection with the dosing milestone, Equillium announced the Milestone Closing of its August 2025 equity private placement. Investors purchased and the company issued 14,957,260 shares of common stock at a price of $0.57 per share and 20,130,457 pre-funded warrants at a price of $0.5669 per warrant. This transaction resulted in aggregate gross proceeds of approximately $20.0 million. The pre-funded warrants have an exercise price of $0.0001 per share and are exercisable at any time until exercised in full. The company stated that the proceeds from this closing, combined with existing cash and cash equivalents, are expected to fund its currently planned operations into 2029.
The securities issued in the private placement were sold in a transaction not involving a public offering and have not been registered under the Securities Act of 1933. The investors were granted customary resale registration rights. The company also noted that the investors waived the Price Threshold Requirement associated with the closing, allowing the transaction to occur on the Milestone Event Date.
