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

Dr. James Helliwell reports EUPRAXIA PHARMACEUTICALS REPORTS THIRD QUARTER 2025 FINANCIAL RESULTS Eupraxia Pharmaceuticals Inc. has released its financial results for the third quarter of 2025 and provided a business update. All dollar values are in U.S. dollars unless stated otherwise. "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)," said Dr. James Helliwell, chief executive officer of Eupraxia. "Our highest-dose cohort delivered the largest improvements in tissue health outcomes and eosinophil reduction observed to date, with no additional safety concerns. 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, including through top-line data from the phase 2b Resolve trial expected in the third quarter of 2026." Recent operational and financial highlights Positive 52-week data from phase 1b/2a Resolve trial: On Sept. 2, 2025, the company announced the first set of one-year clinical results from the Resolve trial, showing that two-thirds of cohort 5 patients (N equal to three) remained in clinical remission after treatment with EP-104GI. Results demonstrated durable symptom and tissue responses beyond nine months of therapy, supporting long-term disease control. Additional 52-week data from cohort 6 is expected later this year. Closing of $80.5-million public offering: On Sept. 24, 2025, the company announced the closing of a public offering of common shares. The company issued 14,636,363 common shares at a price of $5.50 per common share for gross proceeds of approximately $80.5-million, which included the issuance of 1,909,090 common shares upon full exercise of the option to purchase additional shares granted to the underwriters. Proceeds will support clinical development of EP-104GI and broader pipeline advancement. Third quarter 2025 financial review The company incurred a net loss of $6.4-million for the three months ended Sept. 30, 2025, versus a net loss of $6.0-million for the three months ended Sept. 30, 2024. The increase in net loss was primarily due to an increase in research and development costs, and general and administrative costs, partially offset by an increase in other income. The company had cash of $89.0-million as of Sept. 30, 2025, up from $33.1-million at the end of the fourth quarter of 2024. These funds are being used to finance clinical trials in EP-104 and the remainder of the funds will be used for general and administrative expenses, working capital needs, and other general corporate purposes. The company anticipates that existing cash reserves and proceeds from the anticipated future exercise of in-the-money warrants will be sufficient to finance the company into the first half of 2028. As of Sept. 30, 2025, the company had 50,598,331 common shares and 8,905,638 preferred shares outstanding. Potential impact of tariffs Management continues to monitor the North American trade situation stemming from the February, 2025, announcement by the U.S. government of proposed 25-per-cent tariffs on selected imported Canadian goods and the subsequent Canadian announcement of planned retaliatory tariffs on selected imported U.S. goods. Eupraxia manufactures its clinical supplies of EP-104IAR and EP-104GI in the United States by a third party. The company expects to continue to access manufactured products from the U.S. The company maintains U.S. dollar balances to pay U.S.-dollar expenses and to minimize the impact of short-term fluctuations in exchange rates. Management continues to assess the potential direct and indirect impacts of tariffs, counter-tariffs and other trade protection measures on Eupraxia's business, and will take those steps it deems necessary to attempt to mitigate any impact as the situation evolves. Financial statements and management discussion and analysis Please see the unaudited interim consolidated financial statements and related MD&A for more details. The unaudited interim consolidated financial statements for the quarter ended Sept. 30, 2025, and related MD&A have been reviewed and approved by Eupraxia's audit committee and board of directors. For a more detailed explanation and analysis, please refer to the MD&A, which has been filed under the company's profile on EDGAR and on SEDAR+, and which is also available on the company's website. About Eupraxia Pharmaceuticals Inc. Eupraxia is a clinical-stage biotechnology company focused on the development of locally delivered, extended-release products that have the potential to address therapeutic areas with high unmet medical need. Diffusphere, a proprietary, polymer-based microsphere technology, is designed to facilitate targeted drug delivery of both existing and novel drugs. The technology is designed to support extended duration of effect and delivery of drugs in a hyperlocalized fashion, targeting only the tissues that physicians are wanting to treat. The company believes the potential for fewer adverse events may be achieved through the precision targeting and the stable and flat delivery of the active ingredient when using the Diffusphere technology, versus the peaks and troughs seen with more traditional drug delivery methods. The precision of Eupraxia's Diffusphere technology platform has the potential to augment and transform existing U.S. Food and Drug Administration-approved (FDA) drugs to improve their safety, tolerability, efficacy and duration of effect. The potential uses in therapeutic areas may go beyond pain and inflammatory gastrointestinal disease, where Eupraxia currently is developing advanced treatments, to also be applicable in oncology, infectious disease and other critical disease areas. Eupraxia's EP-104GI is currently in a phase 1b/2 trial, the Resolve trial, for the treatment of EoE. EP-104GI is administered as an injection into the esophageal wall, providing local delivery of drug. This is a unique treatment approach for EoE. Eupraxia also recently completed a phase 2b clinical trial (springboard) of EP-104IAR for the treatment of pain due to knee osteoarthritis. The trial met its primary endpoint and three of the four secondary endpoints. In addition, Eupraxia is developing a pipeline of later- and earlier-stage long-acting formulations. Potential pipeline indications include candidates for other inflammatory joint indications and oncology, each designed to improve on the activity and tolerability of currently approved drugs. For further details about Eupraxia, please visit the company's website. We seek Safe Harbor.