Eupraxia's June 30 cash balance at $19.8-million (U.S.)

Dr. James Helliwell reports EUPRAXIA PHARMACEUTICALS REPORTS SECOND QUARTER 2025 FINANCIAL RESULTS AND PROVIDES BUSINESS UPDATE Eupraxia Pharmaceuticals Inc. today released its financial results for the second quarter of 2025 and has provided a business update. All dollar values are in United States dollars unless stated otherwise. Announced first patient dosed in the phase 2b placebo-controlled portion of the EP-104GI Resolve trial with top-line data expected in H2 2026; Announced positive data from phase 1b/2a Resolve supporting the potential of EP-104GI to improve the standard of care for patients with Eosinophilic Esophagitis (EoE); Additional data from cohorts 5 to 8 from phase 1b/2a available in October, 2025. "The expansion into the placebo-controlled, phase 2b portion of the Resolve trial represents a key clinical milestone for Eupraxia, as we seek to advance EP-104GI for the treatment of eosinophilic esophagitis," said Dr. James A. Helliwell, director and chief executive officer of Eupraxia. "Recent data updates support the potential of EP-104GI as a durable treatment option. In the most recent data update, all three patients demonstrated a sustained or improved treatment outcome after nine months of therapy. We look forward to announcing more results from the phase 1b/2a portion of the Resolve trial in October. "As we continue to survey the treatment landscape for EoE, we are increasingly confident in the potential of EP-104GI to fundamentally transform the therapeutic management of EoE. We are off to a strong start with respect to enrollment in the phase 2b study and we are looking forward to reporting top-line results in the second half of 2026." Recent operational and financial highlights On July 8, 2025, the company announced dosing of the first patient in the phase 2b placebo-controlled portion of EP-104GI Resolve trial in EoE. The company plans to enroll a minimum of 60 patients in the phase 2b portion of the trial in up to 25 sites globally, assessing tissue health measured by biopsy (EoEHSS and PEC scores), symptom scores (SDI and DSQ) and safety, over a 12-month period. Top-line data from the phase 2b portion of the Resolve study is expected to be available in H2 2026. On May 9, 2025, the company hosted a virtual key opinion leader (KOL) event to discuss the phase 1b/2a Resolve study of EP-104GI for treatment of EoE with Dr. Evan Dellon. A replay of the webcast is available on-line. On May 5, 2025, the company announced positive nine-month data from the open-label, dose-escalation phase 1b/2a Resolve trial, which demonstrated sustained positive treatment outcomes in patients with EoE after nine months of receiving EP-104GI, with no serious adverse events reported. Second quarter 2025 financial review The company incurred a net loss of $8.7-million for the three months ended June 30, 2025, versus a net loss of $6.1-million for the three months ended June 30, 2024. The increase in net loss was primarily due to an increase in research and development costs, an increase in general and administrative costs, and an increase in other expenses. The company had cash of $19.8-million as of June 30, 2025, down 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 anticipated proceeds from the future exercise of in-the-money warrants, will be sufficient to finance the company into the third quarter of 2026. As of June 30, 2025, the company had 35,959,568 common shares issued 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 United States government of proposed 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 U.S. 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. Upcoming investor conferences The company's management team is scheduled to present and participate at the following upcoming investor conferences: Canaccord Growth 45th Annual Growth Conference Date:  Aug. 12 to Aug. 14, 2025 Presentation date and time:  Aug. 13, 2025, 9:30 a.m. ET Location:  Boston, Mass. Citi Biopharma Back to School Conference Date:  Sept. 2 to Sept. 3, 2025 Location:   Boston, Mass. Cantor Global Healthcare Conference Date:  Sept. 3 to Sept. 5, 2025 Presentation date and time:  Sept. 5, 2025, 9:10 a.m. ET Location:  New York, N.Y. H.C. Wainwright 27th Annual Global Investment Conference Date:  Sept. 8 to Sept. 10, 2025 Location:  New York, N.Y. 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 Food and Drug Administration-approved 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 end points. 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. We seek Safe Harbor.