Eupraxia ends Q3 with cash of $89-million (U.S.)

Executive Summary

• Eupraxia Pharmaceuticals reported its Third Quarter 2025 financial results, including a net loss of $6.4 million and cash reserves of $89.0 million.
• The company announced the closing of an $80.5 million public offering of common shares, priced at $5.50 per share, to fund clinical development of its lead asset, EP-104GI.
• Positive 52-week data from the phase 1b/2a Resolve trial for EP-104GI (treating eosinophilic esophagitis) showed durable remission in two-thirds of patients in cohort 5, with top-line phase 2b data expected in Q3 2026.

Key Details

• Financing Details:
  • Closed public offering of 14,636,363 common shares.
  • Price: $5.50 per common share.
  • Gross Proceeds: Approximately $80.5 million.
  • Includes full exercise of underwriter’s option to purchase 1,909,090 additional shares.
  • Use of Proceeds: Clinical development of EP-104GI and broader pipeline advancement.
• Clinical Updates (EP-104GI for EoE):
  • Phase 1b/2a Resolve Trial: 52-week data released Sept 2, 2025.
  • Cohort 5 (N=3): Two-thirds of patients remained in clinical remission after one year of treatment.
  • Outcomes: Durable symptom and tissue responses beyond nine months; largest improvements in tissue health and eosinophil reduction observed to date; no new safety concerns.
  • Future Milestone: Top-line data from the phase 2b Resolve trial expected in Q3 2026.
  • Additional 52-week data from cohort 6 expected later in the year.
• Financial Performance (Q3 2025):
  • Net Loss: $6.4 million (vs. $6.0 million in Q3 2024).
  • Loss Drivers: Increase in R&D and G&A costs, partially offset by increased other income.
  • Cash Position: $89.0 million as of Sept 30, 2025 (up from $33.1 million at end of Q4 2024).
  • Liquidity Outlook: Existing cash and anticipated warrant exercises sufficient to finance operations into H1 2028.
• Capitalization:
  • Common Shares Outstanding: 50,598,331.
  • Preferred Shares Outstanding: 8,905,638.
• Operational & Macro Context:
  • Tariffs: Management monitoring potential impacts of 25% US tariffs on Canadian goods and retaliatory Canadian tariffs.
  • Manufacturing: Clinical supplies for EP-104IAR and EP-104GI manufactured in the US by a third party; company expects continued access.
  • FX Strategy: Maintains USD balances to cover USD expenses and mitigate exchange rate fluctuations.

Notable Quotes

• "The compelling 52-week data from our Resolve trial reported this quarter further reinforce the potential of EP-104GI as a highly effective and durable treatment for eosinophilic esophagitis (EoE)... Coupled with the successful completion of our $80.5-million financing supported by strong life science focused investors, we are now well resourced to advance the EP-104GI program..." — Dr. James Helliwell, CEO