EQRX - EQRx falls 15% after Q3 updates to pipeline

EQRx, Inc. ( NASDAQ: EQRX ), a biotech focused on oncology, dropped ~15% in the morning hours Thursday after its Q3 2022 financials as investors reacted to the pipeline updates the company announced in response to FDA feedback.

Notable updates include a decision to drop the development of its cancer regimen sugemalimab plus chemotherapy for Stage IV non-small cell lung cancer in the U.S. after the FDA indicated the need for data from a second Phase 3 trial to support a regulatory filing.

The company also announced that an interim comparison of the monotherapy arms in its ongoing Phase 3 trial for aumolertinib would not support its filing for a monotherapy indication in EGFR-mutated NSCLC.

However, final results from this U.S.-led three-arm trial could support combination and monotherapy use for aumolertinib, EQRx ( EQRX ) added, intending to file for its FDA approval in 2027 based on regulatory feedback.

As a result, the company has decided to prioritize its efforts on developing aumolertinib and lerociclib as a combination regimen for lung, breast, and other cancers.

EQRx ( EQRX ) plans to introduce a market-based pricing approach for epidermal growth factor receptor inhibitor aumolertinib and small molecule lerociclib, licensed from G1 Therapeutics ( GTHX ).

Regarding liquidity, the company reported $1.5B of cash, cash equivalents, and short-term investments as of Sep. 30 and projected its cash runway into 2028 beyond the previous guidance of 2025.

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