Following the release of new data, Raymond James analyst Rahul Sarugaser remains bullish about Eupraxia Pharmaceuticals (Eupraxia Pharmaceuticals Stock Quote, Chart, News, Analysts, Financials TSX:EPRX).
On February 5, EPRX released positive clinical data from its RESOLVE trial. The company is hoping its EP-104GI will be the de-facto treatment for eosinophilic esophagitis
“Our goal for EP-104GI is to develop a product that provides potent and targeted immunotherapy to the esophagus with minimal systemic exposure and side effects,” said CEO Dr. James Helliwell. “The updated data announced today from our RESOLVE trial in EoE demonstrate good tolerability and early efficacy signals from patients treated with EP-104GI, as well as evidence of a positive dose response. We believe that EP-104GI has the potential to meet our target profile and become an important treatment for EoE.”
The analyst says the news is unambiguously positive.
“We remain impressed by the clean safety and clinically meaningful and durable efficacy signal yielded in these low-dose cohorts (Cohort 2 dosed over a broader area than Cohort 1: 8 vs 4 injections throughout the esophagus.) With two higher-dose cohorts still to be reported (the first of which, Cohort 3, is fully recruited and dosed – data expected 2Q24), we would view a continued positive dose-response relationship (alongside clean safety) as positive for EP-104GI’s prospects, potentially situating it as best-in-class for EoE symptom improvement and durability of response.
In a research update to clients February 6, Sarugaser maintained his “Strong Buy 1” rating and price target of $6.05 on EPRX.
“We reiterate our acknowledgement that EPRX’s share price remains rangebound around ~$6, which we ascribe to the significant capital required to fund its clinical programs in OA + EoE (we est. ~$50 mln required vs. EPRX’s current ~$30 mln balance sheet),” the analyst concluded/ This said, given the intrinsic value we calculate in these clinical programs—assuming they can be funded—we continue to see significant upside in EPRX’s equity, so maintain our Strong Buy rating.”
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