Analyst loves this unknown Canadian biotech stock

In a Nov. 5 update, Research Capital analyst André Uddin reiterated his “Speculative Buy” rating and C$12.00 target price for Eupraxia Pharmaceuticals (Eupraxia Pharmaceuticals Stock Quote, Chart, News, Analysts, Financials TSX:EPRX), saying the company’s near-term focus remains on advancing its lead candidate EP-104GI in eosinophilic esophagitis while awaiting upcoming clinical readouts.

Uddin said Eupraxia reported no new clinical data with its third-quarter results but continues to deliver “compelling results to date,” adding that further readouts from the high-dose cohorts in the EoE trial’s dose-escalation phase are expected soon.

“Based on previously reported clinical data, we remain confident in the upcoming results,” he said.

The company’s other program, EP-104IAR for osteoarthritis knee pain, has seen little recent public activity. Uddin said that while investors have largely overlooked this asset, it represents “an out-of-the-money call option” on the stock, particularly if Eupraxia can secure a partnership to advance development.

For the quarter ended Sept. 30, Eupraxia reported no revenue, consistent with forecasts and prior-year results, and a net loss of US$6.4-million (US$0.09 per share), narrower than Research Capital’s estimate of a US$8.6-million loss (US$0.14 per share). At quarter-end, the company held US$89.0-million in cash and no debt, which Uddin said provides a runway into the first half of 2028, sufficient to fund the ongoing Phase 2b trial and a planned Phase 3 registrational study for EoE.

Uddin maintained his rating and target, citing confidence in the company’s clinical trajectory and balance-sheet strength.

He added that EP-104GI could outperform Sanofi’s Dupixent, the leading treatment for eosinophilic esophagitis (EoE). In earlier trials, Dupixent showed moderate improvement in inflammation after 24 weeks, while EP-104GI produced stronger results after only four weeks. Uddin said this early response suggests Eupraxia’s drug “may deliver even better outcomes over time.”

He also pointed out that both drugs achieved similar rates of tissue healing in patients, with two out of three EP-104GI patients showing remission, roughly in line with Dupixent’s results. While Dupixent targets specific immune signals linked to inflammation, EP-104GI works through a broader anti-inflammatory approach, yet still achieves comparable effects.

“That tells us EP-104GI may ultimately prove to be the more powerful treatment,” Uddin said.

Taken together, Uddin said, the findings suggest EP-104GI could provide broader and longer-lasting relief for patients with EoE than current standard therapies.

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