Eupraxia Pharmaceuticals Q3 2024 Financial Results

Eupraxia Pharmaceuticals Inc., a clinical-stage biotechnology firm based in Victoria, BC, has reported its financial outcomes for the third quarter of 2024. Eupraxia, which trades on NASDAQ and TSX under the symbol EPRX, focuses on enhancing drug delivery through its proprietary DiffuSphere™ technology to address significant unmet medical needs. The financial statements are presented in U.S. dollars unless indicated otherwise.

The CEO of Eupraxia, Dr. James Helliwell, noted the progress in their Phase 1b/2a RESOLVE trial for EP-104GI, aimed at treating eosinophilic esophagitis. The trial has yielded additional positive results from its fourth cohort, which were showcased at global medical conferences. The company also achieved significant exposure for its Phase 2b SPRINGBOARD trial results on osteoarthritis through a publication in The Lancet Rheumatology. Following the end of the quarter, Eupraxia secured C$44.5 million, ensuring funding for the EP-104GI program through Phase 2 development. Furthermore, the company has bolstered its senior management and board with key appointments.

Operational and financial highlights for the recent quarter include:

1. On September 11, 2024, Eupraxia announced more favorable clinical data from the RESOLVE Phase 1b/2a trial, which evaluates the safety and effectiveness of EP-104GI for eosinophilic esophagitis.
2. Data from the RESOLVE trial was presented at the Controlled Release Society 2024 Annual Meeting in Italy in July and the 20th International Symposium on Digestive Endoscopy World Congress in Scotland in September.
3. Following the quarter's conclusion, on October 2, 2024, Eupraxia appointed Dr. Amanda Malone as Chief Operating and Scientific Officer. Dr. Rahul Sarugaser was also appointed as Executive Vice President of Corporate Development.
4. On October 15, 2024, Phase 2b data from the SPRINGBOARD trial, which evaluates EP-104IAR for knee osteoarthritis treatment, was published in The Lancet Rheumatology.
5. On October 31, 2024, the company closed a non-brokered private placement of C$44.5 million and appointed Mr. Joseph Freedman to the Board of Directors. They also terminated a new C$12 million convertible debt facility.

Financially, the company experienced a net loss of $6.0 million for the quarter ending September 30, 2024, compared to a $4.9 million loss for the same period in 2023, primarily due to a decrease in Other Income linked to changes in the fair value of financial instruments. As of September 30, 2024, Eupraxia had $8.7 million in cash, down from $19.3 million at the close of the fourth quarter of 2023. These funds are allocated for clinical trials in EP-104 and other general corporate needs. The company anticipates that current cash reserves, in addition to proceeds from recent fundraising activities and in-the-money warrants, will sustain operations through the third quarter of 2026. As of the end of September 2024, the company had 35,622,553 common shares outstanding.

Eupraxia Pharmaceuticals is dedicated to developing locally delivered, extended-release products that meet high unmet medical needs. The company's technology aims to provide enhanced patient benefits with targeted, long-lasting effects and fewer side effects. The DiffuSphere™ technology, a proprietary polymer-based microsphere, supports targeted drug delivery with customizable pharmacokinetic profiles, suitable for various active pharmaceutical ingredients and delivery methods.

Currently, Eupraxia's EP-104GI is undergoing a Phase 1b/2a trial (RESOLVE) for eosinophilic esophagitis, using an injection into the esophageal wall for local drug delivery. Additionally, Eupraxia recently completed a Phase 2b clinical trial (SPRINGBOARD) for EP-104IAR in treating knee osteoarthritis pain, achieving its primary endpoint and three secondary endpoints. The company's pipeline includes formulations for other inflammatory joint conditions and oncology, aiming to improve the efficacy and tolerability of current treatments.