Clinical data was reported for the first time in patients receiving an 8 mg dose per injection (Cohort 9 of the dose escalation portion of RESOLVE), the highest dose planned in this trial. Patients in Cohort 9 experienced the largest improvements in tissue health outcomes and eosinophil reduction observed to date.RESOLVE Safety Committee and members of the Eupraxia Clinical Advisory Board endorsed using the 8 mg dose per injection as the second dose for the ongoing Phase 2b portion of the RESOLVE study.Eupr ...

VICTORIA, British Columbia, Sept. 24, 2025 (GLOBE NEWSWIRE) -- Eupraxia Pharmaceuticals Inc. (“Eupraxia” or the “Company”) (NASDAQ:EPRX) (TSX:EPRX), a clinical-stage biotechnology company leveraging its proprietary Diffusphere™ technology designed to optimize local, controlled drug delivery for applications with significant unmet need, is pleased to announce the successful closing of its previously announced public offering (the "Offering") of 14,636,363 common shares of the Company (the “Common Shares"), w ...

来源：环球市场播报 Eupraxia Pharmaceuticals（NASDAQ：EPRX）将其1270万股公开发行价格定为每股5.50美元，筹集约 7000万美元。所筹资金将用于推进其产品管线及相关商业活动。 ...

Core Viewpoint - Eupraxia Pharmaceuticals Inc. has announced a public offering of 12,727,273 common shares at a price of US$5.50 per share, aiming to raise approximately US$70 million for advancing its product pipeline and other corporate purposes [1][3] Group 1: Offering Details - The offering consists of 12,727,273 common shares priced at US$5.50 each, with gross proceeds expected to be around US$70 million before expenses [1] - Underwriters have a 30-day option to purchase an additional 1,909,090 common shares under the same terms [1] - The offering is set to close on September 24, 2025, pending customary closing conditions [1] Group 2: Use of Proceeds - The net proceeds will primarily fund the advancement of the product pipeline, including ongoing preclinical studies, clinical trials, regulatory submissions, and commercial preparation [3] - Additional allocations will support research and development of new pipeline candidates, business development initiatives, and general corporate purposes [3] - The company may also invest in expanding its intellectual property portfolio and enhancing corporate infrastructure for future growth [3] Group 3: Regulatory and Compliance - The offering is made under a U.S. registration statement declared effective by the SEC and the existing Canadian short form base shelf prospectus [4] - A preliminary prospectus supplement has been filed with securities commissions in Canada and the SEC in the U.S., with a final supplement to follow [4][5]

Core Viewpoint - Eupraxia Pharmaceuticals Inc. has filed a preliminary prospectus supplement for a proposed public offering of common shares, aiming to leverage its proprietary Diffusphere™ technology for drug delivery [1][4]. Group 1: Offering Details - The company plans to grant underwriters a 30-day option to purchase up to an additional 15% of the common shares offered [2]. - The offering will be priced based on market conditions, with final terms to be determined at pricing [2]. - The closing of the offering is subject to customary conditions, including listing approvals from the TSX and Nasdaq [2]. Group 2: Use of Proceeds - Net proceeds from the offering will primarily support the advancement of the product pipeline, including preclinical studies, clinical trials, regulatory submissions, and commercial preparation [4]. - A portion of the proceeds will also be allocated to research and development of additional pipeline candidates, business development initiatives, and general corporate purposes [4]. - The company may use proceeds to expand its intellectual property portfolio and strengthen corporate infrastructure for future growth [4]. Group 3: Company Overview - Eupraxia is a clinical-stage biotechnology company focused on developing locally delivered, extended-release products for high unmet medical needs [7]. - The proprietary Diffusphere™ technology is designed to facilitate targeted drug delivery of both existing and novel drugs [7].

Core Insights - Eupraxia Pharmaceuticals announced positive clinical data from its Phase 1b/2a RESOLVE trial for EP-104GI, a treatment for eosinophilic esophagitis (EoE), showing promising results at 52 weeks post-treatment [1][2]. Clinical Trial Results - The RESOLVE trial demonstrated that patients receiving 4mg of EP-104GI showed clinical remission rates of 56% at Week 12, 78% at Week 24, 67% at Week 36, and 67% at Week 52 [3]. - Two-thirds of patients in the 48mg dose cohort maintained clinical remission after 12 months, indicating durable treatment effects [7]. - Improvements in tissue health were observed across all cohorts, with significant reductions in EoE Histological Scoring System (EoEHSS) scores, showing a 47% improvement in severity and a 44% improvement in extent at Week 36 [8]. Pharmacokinetics - Plasma levels of fluticasone in patients treated with 4mg of EP-104GI remained stable and predictable over 52 weeks, significantly lower than levels typically seen with daily asthma inhalers [9][11]. Market Potential - The treatment regimen for EP-104GI could align with the annual endoscopy routine for EoE patients, contrasting with current treatments that require daily or weekly administration [2]. - EoE affects over 450,000 individuals in the U.S., with increasing incidence and prevalence, highlighting a significant market opportunity for effective treatments [17]. Company Overview - Eupraxia Pharmaceuticals focuses on developing locally delivered, extended-release products targeting high unmet medical needs, utilizing its proprietary Diffusphere™ technology for optimized drug delivery [18][19].

[Consolidated Financial Statements](index=1&type=section&id=Consolidated%20Financial%20Statements) This section presents the company's financial position, performance, and cash flows through its balance sheets, statements of operations, shareholders' equity, and cash flows [Consolidated Balance Sheets](index=3&type=section&id=CONSOLIDATED%20BALANCE%20SHEETS) As of June 30, 2025, total assets and shareholders' equity decreased, driven by a significant reduction in cash, while liabilities also declined Consolidated Balance Sheets | Metric | June 30, 2025 ($) | December 31, 2024 ($) | | :-------------------------------- | :------------ | :---------------- | | **ASSETS** | | | | Cash | $19,765,644 | $33,101,294 | | Total current assets | $22,829,767 | $34,436,678 | | Property and equipment, net | $655,578 | $357,893 | | Total assets | $23,595,934 | $34,942,355 | | **LIABILITIES AND SHAREHOLDERS' EQUITY (DEFICIT)** | | | | Total liabilities | $2,618,381 | $3,103,386 | | Total shareholders' equity | $20,977,553 | $31,838,969 | - The company's cash balance decreased by approximately **$13.3 million** from December 31, 2024, to June 30, 2025[3](index=3&type=chunk) - Property and equipment, net, increased by approximately **$297.7 thousand**, indicating capital expenditures[3](index=3&type=chunk) [Consolidated Statements of Operations and Comprehensive Loss](index=4&type=section&id=CONSOLIDATED%20STATEMENTS%20OF%20OPERATIONS%20AND%20COMPREHENSIVE%20LOSS) For the three and six months ended June 30, 2025, net losses increased due to higher general and administrative and R&D expenses, and a significant foreign exchange loss Consolidated Statements of Operations and Comprehensive Loss | Metric | Three months ended June 30, 2025 ($) | Three months ended June 30, 2024 ($) | Six months ended June 30, 2025 ($) | Six months ended June 30, 2024 ($) | | :----------------------------------- | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | General and administrative expenses | $3,067,484 | $2,583,126 | $6,341,878 | $5,101,149 | | Research and development expenses | $5,196,615 | $3,971,975 | $9,046,441 | $8,147,428 | | Total expenses | $8,264,099 | $6,555,101 | $15,388,319 | $13,248,577 | | Net loss for the period | $(8,747,683) | $(6,063,894) | $(15,514,958) | $(12,220,827) | | Loss per share – basic and diluted | $(0.26) | $(0.17) | $(0.47) | $(0.37) | - Foreign exchange loss significantly increased, from **$(75,041)** to **$(733,961)** for the three months ended June 30, 2025, and from **$(218,769)** to **$(682,599)** for the six months ended June 30, 2025[5](index=5&type=chunk) - Interest income decreased for both the three-month and six-month periods ended June 30, 2025, compared to 2024[5](index=5&type=chunk) [Consolidated Statements of Shareholders' Equity (Deficit)](index=5&type=section&id=CONSOLIDATED%20STATEMENTS%20OF%20SHAREHOLDERS%27%20EQUITY%20%28DEFICIT%29) Shareholders' equity decreased from $31.8 million to $21.0 million, primarily due to net loss, despite share issuances and share-based payments Consolidated Statements of Shareholders' Equity (Deficit) | Component | Balance, Dec 31, 2024 ($) | Share-based payments ($) | Redemption of warrants ($) | Redemption of options ($) | Net loss for the period ($) | Foreign currency translation adjustment ($) | Balance, Jun 30, 2025 ($) | | :-------------------------- | :-------------------- | :------------------- | :--------------------- | :-------------------- | :---------------------- | :-------------------------------------- | :-------------------- | | Preferred shares Amount | $31,705,219 | — | — | — | — | — | $31,705,219 | | Common shares Amount | $116,360,066 | — | $458,047 (Q1) / $239,200 (Q2) | $22,175 (Q1) / $37,294 (Q2) | — | — | $117,116,782 | | Additional paid-in capital | $20,503,904 | $1,493,407 (Q1) / $1,117,248 (Q2) | $(41,641) (Q1) / $(21,745) (Q2) | $(8,658) (Q1) / $(14,971) (Q2) | — | — | $23,027,544 | | Deficit | $(131,003,831) | — | — | — | $(6,762,608) (Q1) / $(8,740,916) (Q2) | — | $(146,507,355) | | Accumulated other comprehensive loss | $(4,160,555) | — | — | — | — | $38,164 (Q1) / $1,335,022 (Q2) | $(2,787,369) | | Total Shareholders' Equity | $31,838,969 | $1,493,407 (Q1) / $1,117,248 (Q2) | $416,406 (Q1) / $217,455 (Q2) | $13,517 (Q1) / $22,323 (Q2) | $(6,767,275) (Q1) / $(8,747,683) (Q2) | $38,164 (Q1) / $1,335,022 (Q2) | $20,977,553 | - The company's accumulated deficit increased significantly from **$(131,003,831)** at December 31, 2024, to **$(146,507,355)** at June 30, 2025, reflecting the net losses incurred[9](index=9&type=chunk) - Share-based payments contributed **$2,610,655** to additional paid-in capital during the six months ended June 30, 2025[9](index=9&type=chunk) [Consolidated Statements of Cash Flows](index=7&type=section&id=CONSOLIDATED%20STATEMENTS%20OF%20CASH%20FLOWS) Cash and cash equivalents significantly decreased due to increased operating cash outflow and higher equipment acquisition, with reduced financing inflows compared to the prior year Consolidated Statements of Cash Flows | Cash Flow Activity | Six months ended June 30, 2025 ($) | Six months ended June 30, 2024 ($) | | :----------------------------------- | :----------------------------- | :----------------------------- | | Net loss | $(15,514,958) | $(12,220,827) | | Cash used in operating activities | $(14,318,325) | $(13,832,552) | | Cash provided by (used in) investing activities | $(335,269) | $10,873 | | Cash provided by financing activities | $669,701 | $18,654,405 | | Increase (decrease) in cash and cash equivalents | $(13,983,893) | $4,832,726 | | Cash, end of period | $19,765,644 | $23,316,105 | - Operating cash outflow increased from **$(13,832,552)** in 2024 to **$(14,318,325)** in 2025[11](index=11&type=chunk) - Investing activities shifted from a cash inflow of **$10,873** in 2024 to a cash outflow of **$(335,269)** in 2025, mainly due to higher equipment acquisition[11](index=11&type=chunk) [Notes to the Consolidated Financial Statements](index=7&type=section&id=NOTES%20TO%20THE%20CONSOLIDATED%20FINANCIAL%20STATEMENTS) [1. Nature of Business and Going Concern](index=8&type=section&id=1.%20Nature%20of%20Business%20and%20Going%20Concern) Eupraxia Pharmaceuticals Inc. is a clinical-stage biotechnology company with no revenue, significant losses, and an accumulated deficit, raising going concern doubts without additional funding - Eupraxia Pharmaceuticals Inc. is a clinical stage biotechnology company leveraging its proprietary Diffusphere™ technology to optimize drug delivery[16](index=16&type=chunk) - The company has not yet generated revenue from operations and incurred a net loss of **$15,514,958** during the six months ended June 30, 2025, with an accumulated deficit of **$146,507,355**[17](index=17&type=chunk) - The company's continued operations are dependent on its ability to generate future cash flows or obtain additional funding, which may cast substantial doubt about its ability to continue as a going concern[19](index=19&type=chunk) [2. Basis of Presentation](index=9&type=section&id=2.%20Basis%20of%20Presentation) These unaudited interim consolidated financial statements are presented in U.S. dollars, prepared under U.S. GAAP and SEC rules, and should be read with the 2024 audited statements - The financial statements are presented in U.S. dollars and prepared in accordance with United States generally accepted accounting principles ("U.S. GAAP")[21](index=21&type=chunk) - These unaudited interim consolidated financial statements do not include all the information and footnotes required for complete consolidated financial statements and should be read in conjunction with the audited consolidated financial statements for the year ended December 31, 2024[22](index=22&type=chunk) [3. Upcoming Accounting Standards and Interpretations](index=9&type=section&id=3.%20Upcoming%20Accounting%20Standards%20and%20Interpretations) The Company has reviewed recent accounting pronouncements and expects no material impact on its condensed consolidated financial statements - The Company concluded that recent accounting pronouncements are either not applicable or are not expected to have a material impact on its financial statements[24](index=24&type=chunk) [4. Amounts Receivable](index=9&type=section&id=4.%20Amounts%20Receivable) Amounts receivable decreased from $228,872 to $134,607, primarily due to the absence of other refundable tax credits in 2025 Amounts Receivable | Receivable Type | June 30, 2025 ($) | December 31, 2024 ($) | | :---------------------- | :------------ | :---------------- | | GST/HST recoverable | $134,607 | $82,097 | | Other refundable tax credits | — | $146,775 | | Total | $134,607 | $228,872 | - Other refundable tax credits, which represented tax incentives for R&D costs incurred by Eupraxia Australia, were **$0** at June 30, 2025, down from **$146,775** at December 31, 2024[25](index=25&type=chunk) [5. Property and Equipment](index=10&type=section&id=5.%20Property%20and%20Equipment) The net book value of property and equipment significantly increased from $357,893 to $655,578, driven by substantial additions, particularly in lab equipment Property and Equipment | Category | Net Book Value (Dec 31, 2024) ($) | Net Book Value (Jun 30, 2025) ($) | | :------------------- | :---------------------------- | :---------------------------- | | Computers | $23,057 | $77,656 | | Office furniture and equipment | $14,109 | $13,436 | | Leasehold Improvements | $4,182 | $2,005 | | Lab Equipment | $316,545 | $562,481 | | Total | $357,893 | $655,578 | - Additions to property and equipment totaled **$335,269** during the six months ended June 30, 2025, with lab equipment accounting for **$271,143** of this amount[26](index=26&type=chunk) - Depreciation expense for the six months ended June 30, 2025, was **$65,173**, allocated between general and administrative (**$5,189**) and research and development (**$59,984**)[26](index=26&type=chunk) [6. Right-of-Use Asset](index=11&type=section&id=6.%20Right-of-Use%20Asset) The right-of-use asset decreased from $67,023 to $32,747 due to depreciation, partially offset by foreign exchange, with the office lease extended to November 2025 Right-of-Use Asset | Metric | June 30, 2025 ($) | December 31, 2024 ($) | | :---------------- | :------------ | :---------------- | | Balance, beginning | $67,023 | $46,660 | | Depreciation | $(36,745) | $(57,687) | | Lease extension | — | $78,580 | | Foreign exchange | $2,469 | $(530) | | Balance, ending | $32,747 | $67,023 | - Depreciation expense for the right-of-use asset for the six months ended June 30, 2025, was **$36,745**[28](index=28&type=chunk) - The lease for the office space was extended until November 30, 2025, with the extension increasing the right-of-use asset by **$78,580** in 2024[28](index=28&type=chunk) [7. Accounts Payable and Accrued Liabilities](index=11&type=section&id=7.%20Accounts%20Payable%20and%20Accrued%20Liabilities) Accounts payable and accrued liabilities decreased from $3.0 million to $2.6 million, primarily due to the absence of employee bonus payable, despite increased R&D payables Accounts Payable and Accrued Liabilities | Category | June 30, 2025 ($) | December 31, 2024 ($) | | :-------------------------- | :------------ | :---------------- | | Research and development | $1,479,856 | $573,465 | | General and administrative | $1,074,642 | $943,376 | | Wages and payroll remittances | $28,818 | $20,705 | | Employee bonus payable | — | $1,493,981 | | Total | $2,583,316 | $3,031,527 | - Research and development accounts payable and accrued liabilities increased by over **$900,000** from December 31, 2024, to June 30, 2025[29](index=29&type=chunk) [8. Loans Payable](index=12&type=section&id=8.%20Loans%20Payable) The Company's loans payable balance was reduced to $0 as of June 30, 2025, indicating full repayment of the loan agreement Loans Payable | Metric | June 30, 2025 ($) | December 31, 2024 ($) | | :---------------------- | :------------ | :---------------- | | Balance, beginning | $— | $62,709 | | Loan repayment | — | $(62,651) | | Foreign exchange adjustment | — | $(58) | | Balance, ending | $— | $— | - The loan agreement, which accrued interest at **5.84%** per annum, was fully repaid by December 31, 2024[31](index=31&type=chunk) [9. Lease Liability](index=12&type=section&id=9.%20Lease%20Liability) The lease liability decreased to $35,065 with a remaining term of 0.42 years, and subleasing generated income, reducing G&A expenses Lease Liability | Lease Metric | Three months ended June 30, 2025 ($) | Three months ended June 30, 2024 ($) | Six months ended June 30, 2025 ($) | Six months ended June 30, 2024 ($) | | :-------------------------------- | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Operating lease expense | $21,120 | $16,023 | $41,488 | $32,291 | | Variable lease expense | $18,040 | $17,803 | $35,438 | $35,866 | | Weighted average remaining lease term (years) | 0.42 | 1.42 | 0.42 | 1.42 | | Weighted average discount rate | 9.02% | 9.02% | 9.02% | 9.02% | | Present value of lease liabilities (June 30, 2025) | $35,065 | N/A | $35,065 | N/A | - Subleased amounts reduced general and administrative expenses by **$7,086** for the three months and **$13,919** for the six months ended June 30, 2025[34](index=34&type=chunk) [10. Auritec License Agreement](index=13&type=section&id=10.%20Auritec%20License%20Agreement) Eupraxia LLC holds an exclusive license from Auritec for its Plexis Platform technology, involving an upfront fee, milestone payments up to $25 million, and a 4% royalty on net sales - Eupraxia LLC has an exclusive license from Auritec for the Plexis Platform to deliver fluticasone in all medical fields except otolaryngology and eye-related conditions[35](index=35&type=chunk) - The agreement includes an upfront fee of **$5,000,000** (already paid) and up to **$30,000,000** in milestone payments, with **$5,000,000** paid in 2024 upon successful completion of a Phase 2b study[36](index=36&type=chunk)[38](index=38&type=chunk) Auritec License Agreement Milestone Payments | Milestone Event | Milestone Payment ($) | | :------------------------------------------------------------------------------------------------ | :---------------- | | First OA Regulatory Approval | $5,000,000 | | Second OA Regulatory Approval | $5,000,000 | | Non-OA Indication Regulatory Approval | $10,000,000 | | First calendar year in which aggregate Net Sales by Eupraxia USA, its affiliates and sublicenses exceed $500,000,000 | $5,000,000 | | Maximum amount payable | $25,000,000 | - Eupraxia LLC also agreed to pay Auritec **20%** of sublicensing royalties and a percentage (**10% to 30%**) of Non-Royalty Monetization Revenue, up to a maximum of **$100,000,000**[39](index=39&type=chunk) [11. Convertible Debt](index=14&type=section&id=11.%20Convertible%20Debt) The SVB convertible debt was fully repaid by September 2024, and a new CDN$12 million facility with Yabema Capital was terminated in October 2024 - The **CDN$10,000,000** convertible debt agreement with Silicon Valley Bank (SVB) matured on June 21, 2024, and the remaining balance was fully paid by September 11, 2024, extinguishing the liability[40](index=40&type=chunk)[42](index=42&type=chunk) - A new **CDN$12 million** convertible debt facility with Yabema Capital Limited was entered into on August 1, 2024, but was terminated and all security interests discharged on October 31, 2024, due to the closing of a Convertible Preferred Share Offering[43](index=43&type=chunk)[45](index=45&type=chunk) [12. Share Capital and Other Components of Equity](index=16&type=section&id=12.%20Share%20Capital%20and%20Other%20Components%20of%20Equity) This section details changes in common and preferred shares, equity-based compensation, warrant and option exercises, and the impact of preferred shares on loss per share [a) Authorized](index=16&type=section&id=a%29%20Authorized) The Company is authorized to issue an unlimited number of Common shares and Preferred shares - The Company is authorized to issue an unlimited number of Common shares (no par value, one vote per share) and an unlimited number of Preferred shares (no par value, none issued to date)[47](index=47&type=chunk) [b) Issued (Common Shares)](index=16&type=section&id=b%29%20Issued%20%28Common%20Shares%29) During the six months ended June 30, 2025, common shares were issued from warrant and option exercises, following a significant public offering in 2024 - During the six months ended June 30, 2025, **300,000** common shares were issued from warrant exercises for gross proceeds of **$633,861**, and **17,965** common shares were issued from option exercises for gross proceeds of **$35,840**[47](index=47&type=chunk) - In 2024, the Company issued **8,260,435** common shares through an overnight marketed public offering for aggregate gross proceeds of **$25,026,073**[47](index=47&type=chunk) [c) Issued (Preferred Shares)](index=17&type=section&id=c%29%20Issued%20%28Preferred%20Shares%29) On October 31, 2024, the Company issued 8,905,638 convertible preferred shares in a private placement for $31.9 million, convertible into common shares under specific conditions - On October 31, 2024, the Company issued **8,905,638** convertible preferred shares in a non-brokered private placement for aggregate gross proceeds of **$31,997,837**[48](index=48&type=chunk) - Each Preferred Share is convertible into one common share at the holder's option and mandatorily convertible upon certain conditions, including the common shares trading at **CDN$15.00** or **75%** holder consent[49](index=49&type=chunk)[50](index=50&type=chunk) - Preferred Shares will not initially be entitled to dividends but will receive quarterly dividends (**1.5%** in additional Preferred Shares or **2%** cash) after the third anniversary of closing, subject to shareholder approval[52](index=52&type=chunk) [d) Omnibus Incentive Plan](index=17&type=section&id=d%29%20Omnibus%20Incentive%20Plan) The 2025 Omnibus Incentive Plan allows for equity awards up to 18.5% of outstanding shares, with certain options repriced in April 2025, resulting in additional share-based payment expense Omnibus Incentive Plan Metrics | Metric | June 30, 2025 | December 31, 2024 | | :------------------------------------------ | :------------ | :---------------- | | Options Outstanding | 5,873,155 | 5,307,870 | | Weighted average exercise price (CDN$) | $5.05 | $5.50 | | Share-based payments (six months ended) ($) | $2,610,655 | $1,688,050 | | Unrecognized stock-based compensation expense ($) | $2,274,225 | N/A | - The 2025 Omnibus Incentive Plan, ratified by shareholders on June 2, 2025, allows for various equity awards, with the number of Common Shares available for issuance being a rolling maximum of **18.5%** of issued and outstanding shares[53](index=53&type=chunk) - On April 25, 2025, **258,450** options with exercise prices ranging from **CDN$6.75** to **CDN$8.00** were repriced to **CDN$5.05**, resulting in an additional share-based payment expense of **$112,804**[54](index=54&type=chunk) [e) Warrants](index=20&type=section&id=e%29%20Warrants) Warrants outstanding decreased to 8,507,977 as of June 30, 2025, with 300,000 warrants exercised during the six-month period Warrants Metrics | Metric | June 30, 2025 | December 31, 2024 | | :-------------------------------- | :------------ | :---------------- | | Warrants Outstanding | 8,507,977 | 8,807,977 | | Weighted average exercise price (CDN$) | $5.56 | $5.48 | | Warrants exercised (six months ended) | 300,000 | 80,243 | | Warrants expired (six months ended) | — | 231,110 | - As of June 30, 2025, the majority of outstanding warrants have expiry dates in March and April 2026, with exercise prices of **CDN$11.20**, **CDN$3.00**, and **CDN$2.05**[60](index=60&type=chunk) [f) Class B Non-Voting shares](index=21&type=section&id=f%29%20Class%20B%20Non-Voting%20shares) The Company issued 225 non-voting Class B shares to its Chief Scientific Officer, exchangeable into 562,500 common shares under specific conditions - The Company issued **225** non-voting Class B shares in Eupraxia Pharma Inc. to its Chief Scientific Officer, representing **5%** of outstanding securities, in exchange for AMDM Holdings Inc[61](index=61&type=chunk) - Each Class B Share is exchangeable into **2,500** common shares of the Company (totaling **562,500** common shares), with exchangeable conditions including the Chief Scientific Officer's election or forced exchange by the Company under specific circumstances[62](index=62&type=chunk) [g) Earnings (loss) per Share](index=21&type=section&id=g%29%20Earnings%20%28loss%29%20per%20Share) Due to preferred share classification, an implied dividend was calculated, leading to an adjusted loss attributable to common shareholders and increased loss per share Earnings (loss) per Share | Metric | Three months ended June 30, 2025 ($) | Three months ended June 30, 2024 ($) | Six months ended June 30, 2025 ($) | Six months ended June 30, 2024 ($) | | :-------------------------------------------------- | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Loss attributable to the Owners of the Company | $(8,740,916) | $(6,007,216) | $(15,503,524) | $(12,050,254) | | Less: implied dividend on Preferred Shares | $643,424 | — | $1,263,940 | — | | Adjusted Loss attributable to the Owners of the Company | $(9,384,340) | $(6,007,216) | $(16,767,464) | $(12,050,254) | | Loss per Share - Basic and Diluted | $(0.26) | $(0.17) | $(0.47) | $(0.37) | - Due to the classification of Preferred Shares as increasing rate preferred stock with dividends not declared until the third anniversary, the Company calculated an implied dividend in determining loss attributable to common shareholders[63](index=63&type=chunk) [13. General and Administrative Expenses](index=22&type=section&id=13.%20General%20and%20Administrative%20Expenses) General and administrative expenses increased for both the three and six months ended June 30, 2025, driven by higher office expenses, travel, and salaries, despite reduced professional fees General and Administrative Expenses | Expense Category | Three months ended June 30, 2025 ($) | Three months ended June 30, 2024 ($) | Six months ended June 30, 2025 ($) | Six months ended June 30, 2024 ($) | | :-------------------------- | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Office expenses | $208,805 | $94,670 | $448,921 | $205,979 | | Professional fees | $631,076 | $255,354 | $1,078,526 | $1,357,152 | | Salaries and benefits | $735,139 | $546,270 | $1,445,070 | $1,068,146 | | Share based payments | $741,510 | $913,317 | $1,868,543 | $1,067,944 | | Total expenses | $3,067,484 | $2,583,126 | $6,341,878 | $5,101,149 | - Share-based payments within G&A increased significantly for the six months ended June 30, 2025, to **$1,868,543** from **$1,067,944** in the prior year[64](index=64&type=chunk) - Professional fees decreased for the six-month period from **$1,357,152** in 2024 to **$1,078,526** in 2025[64](index=64&type=chunk) [14. Research and Development Expenses](index=22&type=section&id=14.%20Research%20and%20Development%20Expenses) Research and development expenses increased for both periods in 2025, driven by higher preclinical and clinical costs and increased salaries, despite lower manufacturing and analytical costs Research and Development Expenses | Expense Category | Three months ended June 30, 2025 ($) | Three months ended June 30, 2024 ($) | Six months ended June 30, 2025 ($) | Six months ended June 30, 2024 ($) | | :-------------------------- | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Preclinical | $1,103,078 | $704,653 | $1,334,355 | $966,289 | | Clinical | $1,195,516 | $334,399 | $1,899,601 | $1,367,359 | | Manufacturing & analytical | $1,109,711 | $1,204,094 | $2,422,356 | $2,950,838 | | Salaries and benefits | $972,471 | $910,407 | $1,921,747 | $1,778,087 | | Share based payments | $375,738 | $561,603 | $742,112 | $620,106 | | Total expenses | $5,196,615 | $3,971,975 | $9,046,441 | $8,147,428 | - Clinical R&D expenses saw a substantial increase, more than tripling for the three-month period and increasing by over **$500,000** for the six-month period in 2025 compared to 2024[65](index=65&type=chunk) - Manufacturing & analytical costs decreased for both periods in 2025 compared to 2024[65](index=65&type=chunk) [15. Commitments and Contingencies](index=23&type=section&id=15.%20Commitments%20and%20Contingencies) The Company has potential future milestone, royalty, and R&D funding payments under license agreements, contingent on specific achievements and not yet accrued - The Company may be required to make milestone, royalty, and other R&D funding payments under agreements with third parties (e.g., Auritec License Agreement), contingent upon the achievement of specific development, regulatory, and/or commercial milestones[68](index=68&type=chunk) - The Company has not accrued these contingent payments as of June 30, 2025, due to the uncertainty of milestone achievement[68](index=68&type=chunk) - Service contracts with vendors may include cancellation fees ranging from **15%** to **100%** of the next service milestone if terminated[68](index=68&type=chunk) [16. Segmented Information](index=24&type=section&id=16.%20Segmented%20Information) The Company operates as a single reportable segment, with performance assessed through preclinical and clinical research goals, net loss, and cash flows, with most assets in Canada Segmented Information | Segment Expense Category | Six months ended June 30, 2025 ($) | Six months ended June 30, 2024 ($) | | :-------------------------------- | :----------------------------- | :----------------------------- | | Direct external research and development costs: EP-104GI | $4,274,921 | $1,824,740 | | Salaries and benefits | $3,366,817 | $2,846,233 | | Share based payments | $2,610,655 | $1,688,049 | | Total segment expenses | $15,388,319 | $13,248,577 | | Net loss for the period | $(15,514,958) | $(12,220,827) | - The Company operates as a single reportable segment, managed by the Chief Executive Officer on a consolidated basis[69](index=69&type=chunk) - Performance is assessed through the achievement of pre-clinical and clinical research goals, net loss, and cash flows, as the Company does not currently generate revenue[70](index=70&type=chunk)[71](index=71&type=chunk) [17. Financial Instruments](index=25&type=section&id=17.%20Financial%20Instruments) The Company's financial instruments include cash, receivables, and payables, facing liquidity risk from cash usage and currency risk from US and Australian dollar transactions Financial Instruments | Financial Instrument | June 30, 2025 ($) | December 31, 2024 ($) | | :-------------------------------- | :------------ | :---------------- | | Cash | $19,765,644 | $33,101,294 | | Amounts receivable | $134,607 | $228,872 | | Accounts payable and accrued liabilities | $2,583,316 | $3,031,527 | - The Company's primary financial instruments are cash, amounts receivable, and accounts payable and accrued liabilities[72](index=72&type=chunk) - Liquidity risk is managed by ensuring sufficient cash to meet liabilities, but there is no assurance of future funding availability[73](index=73&type=chunk) - Currency risk arises from transactions in US dollars and Australian dollars; a **10%** change in US dollar exchange rates would impact profit or loss by approximately **$1,021,122** as of June 30, 2025[76](index=76&type=chunk)[77](index=77&type=chunk) [18. Interest Expense](index=27&type=section&id=18.%20Interest%20Expense) The Company reported no interest expense for the three and six months ended June 30, 2025, reflecting the full repayment of the SVB debt facility Interest Expense | Expense Category | Three months ended June 30, 2025 ($) | Three months ended June 30, 2024 ($) | Six months ended June 30, 2025 ($) | Six months ended June 30, 2024 ($) | | :-------------------------- | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Interest on SVB debt facility | $— | $281,319 | $— | $601,637 | | Other interest and accretion | $— | $526 | $— | $1,348 | | Total | $— | $281,845 | $— | $602,985 | - The absence of interest expense in 2025 is due to the full repayment of the Silicon Valley Bank debt facility by September 2024[42](index=42&type=chunk)[81](index=81&type=chunk) [19. Supplemental Disclosure with Respect to Cash Flows](index=27&type=section&id=19.%20Supplemental%20Disclosure%20with%20Respect%20to%20Cash%20Flows) The Company paid no interest during the three and six months ended June 30, 2025, a significant decrease from the prior year, and no non-cash transactions occurred Supplemental Disclosure with Respect to Cash Flows | Cash Flow Item | Three months ended June 30, 2025 ($) | Three months ended June 30, 2024 ($) | Six months ended June 30, 2025 ($) | Six months ended June 30, 2024 ($) | | :-------------------------- | :------------------------------- | :------------------------------- | :------------------------------- | :------------------------------- | | Interest paid | $nil | $199,191 | $nil | $361,386 | | Interest received | $257,031 | $401,226 | $565,219 | $637,595 | - No non-cash transactions occurred for the three and six months ended June 30, 2025, and June 30, 2024[83](index=83&type=chunk) [20. Subsequent Event](index=27&type=section&id=20.%20Subsequent%20Event) On July 15, 2025, the Company renewed its Victoria, BC facility lease for an additional twelve months, with an option for a further twelve-month renewal - On July 15, 2025, the Company renewed its lease for its Victoria, BC facility for an additional twelve months, commencing December 1, 2025, and ending November 30, 2026[84](index=84&type=chunk) - The Renewal Agreement also includes an option for the Company to renew the lease for a further twelve months, from December 1, 2026, to November 30, 2027[84](index=84&type=chunk)

Core Insights - Eupraxia Pharmaceuticals reported a net loss of $8.7 million for Q2 2025, an increase from a net loss of $6.1 million in Q2 2024, primarily due to rising research and development costs [4] - The company had cash reserves of $19.8 million as of June 30, 2025, down from $33.1 million at the end of Q4 2024, with expectations to fund operations into Q3 2026 [5][6] - The Phase 2b portion of the RESOLVE trial for EP-104GI has commenced, with topline data expected in the second half of 2026 [2][8] Financial Performance - The increase in net loss for Q2 2025 was attributed to higher research and development, general and administrative costs, and other expenses [4] - Cash reserves decreased significantly, indicating a need for careful financial management as the company funds ongoing clinical trials [5] - The company anticipates that existing cash and potential proceeds from in-the-money warrants will sustain operations until at least Q3 2026 [6] Clinical Development - The Phase 2b trial for EP-104GI aims to enroll at least 60 patients across 25 sites globally, focusing on treatment outcomes for eosinophilic esophagitis (EoE) [9] - Recent data from the Phase 1b/2a RESOLVE trial showed sustained positive treatment outcomes in patients after nine months, with no serious adverse events reported [8][9] - The company is optimistic about the potential of EP-104GI to transform the treatment landscape for EoE, with further data updates expected in October 2025 [3][8] Upcoming Events - Eupraxia's management is scheduled to present at several investor conferences, including the Canaccord Growth Conference and the Citi Biopharma Back to School Conference, providing opportunities for investor engagement [12][13]

Core Viewpoint - Eupraxia Pharmaceuticals Inc. is a clinical-stage biotechnology company focused on optimizing local, controlled drug delivery through its proprietary DiffuSphere™ technology, addressing significant unmet medical needs in various therapeutic areas [1][3]. Company Overview - Eupraxia is developing locally delivered, extended-release products aimed at therapeutic areas with high unmet medical need, utilizing its DiffuSphere™ technology for targeted drug delivery [3]. - The technology is designed to enhance the safety, tolerability, efficacy, and duration of effect of existing FDA-approved drugs, with potential applications extending beyond pain and inflammatory gastrointestinal diseases to oncology and infectious diseases [3]. Clinical Trials and Pipeline - Eupraxia's EP-104GI is currently in a Phase 1b/2 trial (RESOLVE trial) for treating eosinophilic esophagitis (EoE), utilizing a unique injection method for local drug delivery [4]. - The company recently completed a Phase 2b clinical trial (SPRINGBOARD) for EP-104IAR, targeting pain from knee osteoarthritis, achieving its primary endpoint and three of four secondary endpoints [4]. - Eupraxia is also developing a pipeline of long-acting formulations for other inflammatory joint conditions and oncology, aimed at improving the activity and tolerability of currently approved drugs [4]. Upcoming Investor Conferences - Eupraxia's management will present at several upcoming investor conferences, including: - Canaccord Growth 45th Annual Growth Conference on August 13, 2025, in Boston, MA [2]. - Citi Biopharma Back to School Conference on September 2-3, 2025, in Boston, MA [2]. - Cantor Global Healthcare Conference on September 5, 2025, in New York, NY [2]. - H.C. Wainwright 27th Annual Global Investment Conference on September 8-10, 2025, in New York, NY [2].

Core Insights - Eupraxia Pharmaceuticals has initiated the Phase 2b randomized, placebo-controlled portion of the RESOLVE clinical trial for EP-104GI, targeting eosinophilic esophagitis (EoE) [1][4] - The trial aims to enroll at least 60 participants and will assess the efficacy of EP-104GI in improving tissue health and symptomatic relief [2][5] - The study employs an adaptive design for dose selection, with the first active dose being 120 mg based on previous cohorts' data [3][5] Company Overview - Eupraxia Pharmaceuticals is a clinical-stage biotechnology company focused on developing locally delivered, extended-release products for high unmet medical needs [10] - The company's proprietary DiffuSphere™ technology aims to optimize drug delivery, potentially reducing adverse events compared to traditional methods [10] - EP-104GI is administered via esophageal wall injections, representing a novel approach for treating EoE [11] Clinical Trial Details - The Phase 2b RESOLVE trial will evaluate two active doses of EP-104GI against a placebo over a 12-month period, with primary and secondary objectives including tissue health and symptom improvement [2][5][8] - Topline data from the Phase 2b study is expected by Q3 2026, with ongoing data reporting from the Phase 2a open-label study [7][5] - The trial will involve up to 25 sites globally, assessing various clinical outcomes at multiple time points [2][5] Eosinophilic Esophagitis (EoE) Context - EoE is an inflammatory condition affecting over 450,000 individuals in the U.S., characterized by difficulty swallowing and associated mental health issues [9] - The disease has been noted for its increasing incidence and prevalence, highlighting the need for effective treatments [9]