Equillium (NASDAQ:EQ) is trading ~7% higher after the company said it had granted Ono Pharma an option to purchase rights to itolizumab, its monoclonal antibody targeting CD6 that treats to severe psoriasis.
Equillium will receive an upfront payment of about $26.0M, and is eligible to receive up to about $138.5M in option exercise and milestone payments.
Under the deal, Ono will fund Equillium’s continued research and development of itolizumab during the exercise period.
These rights include all therapeutic indications and the rights to commercialize itolizumab in the United States, Canada, Australia, and New Zealand, the company said.
"Through this partnership, we have secured the resources necessary to continue advancing our Phase 3 EQUATOR study of itolizumab in the treatment of first-line acute graft-versus-host disease, a severe life-threatening disease, and our ongoing EQUALISE study in lupus nephritis," said Bruce Steel, Chief Executive Officer at Equillium.
The option period will expire three months following topline data from the EQUALISE study in lupus nephritis and interim data from the EQUATOR Phase 3 study in acute GVHD.
