Equillium downgraded to Market Perform from Outperform at Leerink

Leerink analyst Thomas Smith downgraded Equillium (EQ) to Market Perform from Outperform with a price target of $1, down from $3. The company reported “disappointing” topline results from the Phase 3 EQUATOR study of its lead asset itolizumab in front-line acute graft-versus-host disease, the analyst tells investors in a research note. The firm says that while encouraging trends emerged with longer-term follow-up and the safety profile appears generally clean, it sees an uncertain path forward for itolizumab ahead of regulatory interactions expected in the next two months. Leerink cites uncertainty regarding the regulatory path forward and a financing overhang for the downgrade.