 Headline grabbing biotechs are far from a rare sight in 2020. Nevertheless, when a little-known micro-cap pops by 730 in a single trading session, avid market followers are likely to take notice.And so to Equillium EQ, the aforementioned little known biotech, whose shares blasted off on Monday.The rally began following the announcement that the Drugs Controller General of India Indias equivalent of the FDA - granted Equilliums partner Biocon emergency approval for itolizumab, a treatment of cytokine release syndrome CRS in COVID-19 patients with acute respiratory distress syndrome ARDS. The approval came following a 30-patient proof-of-concept trial in which the drug reduced mortality in hospitalized COVID-19 patients all patients given the drug survived.The drug is currently being developed as a treatment for various autoimmune and inflammatory diseases. However, Equillium now plans to file an investigational new drug IND application so it can proceed with a clinical trial of itolizumab in COVID-19 patients in the US.H.C. Wainwright analyst Ram Selvaraju believes progress could be fast once the wheels are set in motion.In our view, said the 5-star analyst, itolizumab could be developed rapidly using a similar trial design in a larger patient groupperhaps no more than 200-400 subjectswith a randomized, double-blinded, controlled approach. Such a trial program in the U.S. could be accomplished involving only 10-12 centers and might cost under 10M to execute. If started in the next several weeks, we believe such a trial could yield results in early 4Q20 and facilitate either accelerated approval or Emergency Use Authorization from the FDA before year-end.Selvaraju estimates that the penetration rate in the U.S. for the treatment wont exceed 3.5, as the patients eligible to receive itolizumab - those with specific types of immunological and respiratory complications - make up less than 15 of all COVID-19-infected patients.The analyst reckons the treatment will sell for approximately 1,750 per course, and could notch potential peak sales of over 500 million in the U.S. market by 2022, after which sales are expected to decline as the pandemic gradually retreats.To this end, Selvaraju boosts his price target on EQ to 24 from 14, which implies about 70 upside from current levels. To watch Selvarajus track record, click hereOnly one other analyst has posted an EQ review over the last 3 months, also recommending a Buy. See Equillium stock analysis on TipRanksTo find good ideas for healthcare stocks trading at attractive valuations, visit TipRanks Best Stocks to Buy, a newly launched tool that unites all of TipRanks equity insights. 