Eupraxia Pharmaceuticals Q1 2024 Financial Results and Corporate Update

Eupraxia Pharmaceuticals Inc., a clinical-stage biotechnology company, has announced its financial results for the first quarter of 2024 and provided a corporate update. The company, listed on both Nasdaq and TSX under the symbol "EPRX," has made significant strides toward advancing its clinical programs and enhancing its financial position.

CEO Dr. James Helliwell highlighted the productive first quarter, noting the company's strengthened balance sheet, Nasdaq listing, and progress in clinical trials. Eupraxia anticipates regular data updates from its RESOLVE study and feedback from the U.S. Food and Drug Administration (FDA) on the registration path for EP-104GI, a treatment for eosinophilic esophagitis (EoE). Moreover, the company is in discussions with potential strategic partners for its Phase 3 osteoarthritis program and is exploring additional funding opportunities.

Recent operational highlights include the presentation of two abstracts at the Osteoarthritis Research Society International (OARSI) World Congress 2024, showcasing results from the SPRINGBOARD Phase 2b study. This study evaluated the efficacy of EP-104IAR, a long-acting intra-articular injection of fluticasone propionate, in patients with knee osteoarthritis. The study met its primary and three out of four secondary endpoints, demonstrating a significant impact on pain and a favorable safety profile.

Eupraxia also announced the Nasdaq listing of its common shares under the ticker "EPRX" effective April 5, 2024. Additionally, the company closed an overnight marketed public offering on March 15, 2024, raising gross proceeds of C$33.87 million. These funds will support clinical trials for EP-104 and cover general administrative expenses, milestone payments, and working capital needs.

On February 5, 2024, Eupraxia provided a positive clinical update from its ongoing RESOLVE Phase 1b/2a trial for EP-104GI, highlighting the absence of serious adverse events and significant reductions in Dysphasia and Odynophagia Likert scores among the second cohort. The third cohort, dosed at higher levels, is expected to yield results in the second quarter of 2024.

The company initiated a Phase 3 development program for EP-104IAR, following an End-of-Phase 2 meeting with the FDA, and is exploring partnership opportunities for this drug candidate. Additionally, an MRI exploratory sub-study from the SPRINGBOARD trial showed promising results regarding joint inflammation and cartilage quality.

Looking ahead, Eupraxia plans to deliver several clinical and regulatory milestones throughout 2024. These include interim readouts from the RESOLVE study, additional MRI data from the SPRINGBOARD trial, and further discussions with the FDA regarding the registration pathway for EP-104GI. The company also anticipates broader dissemination of its trial data and the declaration of a new pipeline candidate leveraging its DiffuSphere™ technology.

Eupraxia's annual general and special meeting of shareholders is scheduled for June 6, 2024, via live webcast. Shareholders of record as of April 24, 2024, are entitled to vote at the meeting.

Financially, Eupraxia reported a net loss of $6.2 million for the first quarter of 2024, compared to $4.0 million for the same period in 2023. The increase in net loss was primarily due to higher clinical trial costs and expenses related to financing and business development. As of March 31, 2024, the company had $35.9 million in cash, up from $19.3 million at the end of 2023, sufficient to fund operations through the second quarter of 2025, assuming successful refinancing of its existing debt facility with Silicon Valley Bank. The company had 35,622,553 common shares issued and outstanding as of March 31, 2024.

Eupraxia Pharmaceuticals is focused on developing locally delivered, extended-release products to address therapeutic areas with high unmet needs. Their proprietary DiffuSphere™ technology aims to optimize drug delivery, offering targeted and long-lasting activity with fewer side effects. The company's pipeline includes treatments for osteoarthritis and eosinophilic esophagitis, as well as potential candidates for other inflammatory conditions and oncology.