Eupraxia wins new (US) $15.50 target at Leede Financial

Leede Financial analyst Douglas Loe raised his target on Eupraxia Pharmaceuticals (Eupraxia Pharmaceuticals Stock Quote, Chart, News, Analysts, Financials  NASDAQ:EPRX) to US$15.50 from US$12.75, maintaining a “Buy” rating in a May 5 update after adding esophageal strictures to his valuation model.

Loe said the B.C.-based inflammatory disease drug-delivery company presented 36-week data at Digestive Disease Week from its Phase 2 RESOLVE trial in eosinophilic esophagitis, or EoE, testing EP-104GI, its DiffuSphere-based injectable fluticasone propionate formulation.

The analyst said the data support his existing view that EP-104GI could become an important EoE therapy, with localized drug release that may reduce symptoms while avoiding systemic side effects associated with other corticosteroid options.

“The purpose of our update is not to emphasize our positive view on EP-104GI’s medical prospects as an EoE therapy,” Loe said, “but herein we are raising our PT from US$12.75 to US$15.50 by now ascribing value to EP-104GI as a treatment for esophageal strictures.”

Loe said esophageal strictures represent a distinct market from EoE, though one where corticosteroids are already used as part of treatment. He said EP-104GI’s extended-release, localized delivery could make it relevant to the standard of care in that indication.

Loe expects Eupraxia to post Adjusted EBITDA of negative $35.2-million on no revenue in fiscal 2026, improving to negative $24.6-million on no revenue in fiscal 2027. He expects the model to turn positive later in the decade, forecasting Adjusted EBITDA of $38.4-million on $61.5-million in revenue in fiscal 2030 and $111.8-million on $134.1-million in revenue in fiscal 2031.

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