Should you sell your Eupraxia Pharmaceuticals stock?

Research Capital analyst Andre Uddin maintained a “Speculative Buy” rating and C$12.00 target price on Eupraxia Pharmaceuticals (Eupraxia Pharmaceuticals Stock Quote, Chart, News, Analysts, Financials TSX:EPRX) in a Sept. 2 update after the company reported one-year data from its ongoing RESOLVE trial in eosinophilic esophagitis.

Victoria-based Eupraxia is a drug delivery company developing its lead candidate EP-104IAR for osteoarthritis pain and pursuing a new formulation, EP-104GI, for EoE.

Uddin said the one-year data reinforced the treatment’s durability, noting that 67C of patients in three higher-dose cohorts (48mg, 54mg, and 80mg) remained in clinical remission at week 52.

“This data further reinforces EP-104GI’s competitive position and enhances its value proposition by demonstrating a compelling efficacy and safety profile,” he said. “Because patients with EoE typically undergo an annual biopsy to monitor disease progression, the one-year results provide further validation, reinforcing our confidence in EP-104GI’s clinical fit within the standard EoE management pathway.”

He also pointed to histological improvements, with EoEHSS scores showing a 47% reduction in grade severity and a 44% reduction in disease stage at week 36. Mean plasma fluticasone levels remained stable and well below those of Flovent at week 52.

Uddin said the broader competitive landscape includes Sanofi’s Dupixent and Takeda’s Eohilia, which are already approved for EoE, while Bristol Myers Squibb’s cendakimab has reported positive Phase 3 data. He contrasted Eupraxia’s approach with Celldex Therapeutics, which announced on Aug. 19 that its Phase 2 candidate barzolvolimab failed to improve outcomes.

“Barzolvolimab specifically targets mast cells, and the Phase 2 results indicate that selectively targeting this cell type may be insufficient,” Uddin said. “In contrast, EP-104GI targets inflammation further upstream, employing a broader mechanism of action rather than focusing on a single cell type or pathway. This may help explain the compelling efficacy observed to date.”

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