Research Capital’s Andre Uddin said August 13 he remains focused on Eupraxia Pharmaceuticals’ (Eupraxia Pharmaceuticals Stock Quote, Chart, News, Analysts, Financials TSX:EPRX) clinical development rather than its financial performance, maintaining a “Speculative Buy” rating and C$12 target.
The Victoria, B.C.-based company is developing EP-104IAR for osteoarthritis pain and a new formulation for eosinophilic esophagitis, a chronic inflammatory disease of the esophagus.
For Q2 2025, Eupraxia reported zero revenue, matching estimates and the same period last year, and a net loss of $8.7-million, or $0.15 per share, in line with Uddin’s forecast. It ended the quarter with $19.8-million in cash and no debt, providing funding into Q1 2026.
The analyst noted that on May 5, Eupraxia reported nine-month durability data from the ongoing Phase 1b/2a RESOLVE trial. On May 9, the company held a key opinion leader event featuring Dr. Evan Dellon, chair of its advisory board and professor of medicine at the University of North Carolina School of Medicine, to discuss the results.
“In our view, if EP-104GI continues to generate similar efficacy as competitor Dupixent (Sanofi/Regeneron), given the excellent long-term release profile of EP-104GI and upstream anti-inflammatory mechanism of action, we believe it should potentially outcompete Dupixent,” Uddin said.
Uddin said EP-104GI’s nine-month durability matches the standard annual histology assessment for eosinophilic esophagitis patients, allowing both to be done in the same appointment.
“This represents a meaningful advantage in convenience for patients, clinicians, and payers, versus Dupixent’s weekly or biweekly injection schedule. We expect additional data readouts from cohorts 5-8 by October 2025.”
On July 8, Eupraxia said the first patient was dosed in its Phase 2b trial for eosinophilic esophagitis, marking the transition from its ongoing Phase 1b/2a study.
“The placebo-controlled Phase 2b study will enroll a minimum of 60 patients across three arms: two treatment cohorts (120mg and either 80mg or 160mg) and one placebo cohort,” Uddin said. “Upon completion of the trial, we expect management to engage with the FDA and initiate a single-dose, Phase 3 registrational study by mid-2026.”
He said EP-104GI has demonstrated a strong dose-response to date.
“If strong efficacy continues in the larger, placebo-controlled Phase 2b trial, it could serve as a major stock catalyst and support the case for a potential partnership with a big pharmaceutical or a major biotech company. Investors are focused on EoE, but the company also has excellent OA Phase 2 data awaiting a partnership too.”
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