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Eupraxia Pharmaceuticals Reports First Quarter 2022 Financial Results
Tuesday, May 31, 2022
Victoria, BC, May 31, 2022--(T-Net)--Eupraxia Pharmaceuticals Inc. (TSX: EPRX), a Phase 2 clinical-stage biotechnology company with an innovative drug delivery technology platform, today announced its unaudited financial results (prepared in accordance with International Financial Reporting Standards or "IFRS") and operational highlights for the first quarter ended March 31, 2022.
All amounts are expressed in Canadian dollars unless otherwise indicated.
James Helliwell, Director and Chief Executive Officer, Eupraxia Pharmaceuticals Inc.
"Eupraxia's Phase 2 clinical trial, which is evaluating EP-104IAR's safety and efficacy for the treatment of pain due to osteoarthritis of the knee, continued to dose patients during the first quarter, with the pace of enrollment accelerating as we added new centres," said Dr. James Helliwell, CEO of Eupraxia.
"Subsequent to quarter end, we significantly extended our financial runway by completing a financing for gross proceeds of $14.7 million. The transaction featured strong institutional and insider participation. With our Phase 2 trial progressing and a stronger balance sheet, the additional funding further supports pipeline advances and the broader application of our technology."
Selected Operational and Financial Highlights for the First Quarter
First Quarter 2022 Financial Review
The Company continued to enroll and dose patients in its Phase 2 clinical trial of EP-104IAR. Operating expenses for the three months ended March 31, 2022, were $3.4 million, versus $5.2 million in the prior year period. The decrease for the period was primarily driven by lower general and administrative costs and a reduction in stock-based compensations costs, offset by higher research and development costs associated with the Phase 2 clinical trial for EP-104IAR.
The Company incurred a net loss of $3.8 million for the three months ended March 31, 2022, versus $8.9 million for the quarter ended March 31, 2021. The decrease in net loss was driven by lower general and administrative costs, a reduction in stock-based compensation, a loss on conversion of notes and a change in the fair value of warrant liability that did not recur in 2022, offset by higher research and development costs associated with the above-mentioned clinical trial.
The Company had a cash and short-term investments balance of $25.9 million as at March 31, 2022. Management believes it has sufficient resources to fund the Company through to the fourth quarter of 2023.
As at March 31, 2022, the Company had 14,242,595 common shares issued and outstanding.
Financial Statements and Management Discussion & Analysis
Please see the unaudited consolidated financial statements and related Management's Discussion & Analysis ("MD&A") for more details. The unaudited consolidated financial statements for the quarter ended March 31, 2022, and related MD&A have been reviewed and approved by Eupraxia's Audit Committee and Board of Directors. For a more detailed explanation and analysis, please refer to the MD&A that has been filed under the Company's profile on SEDAR at www.sedar.com and is also available on the Company's website at www.eupraxiapharma.com.
About EP-104IAR
Eupraxia's lead product candidate, EP-104IAR, is designed to meet the significant unmet medical need and market demand for long-lasting pain relief for knee osteoarthritis ("OA"). The U.S. Centers for Disease Control and Prevention estimates that knee OA affects more than 30 million people in the U.S. alone. This includes 14 million that suffer with knee pain or some form of disability. Knee OA is also associated with depression and loss of sleep, which can greatly affect quality of life.
With EP-104IAR, Eupraxia hopes to change the way knee OA pain is treated. Current therapies are challenged by poor safety, inadequate efficacy and/or limited duration of activity. Corticosteroids are one of only two drug classes strongly recommended by the American College of Rheumatology and the Arthritis Foundation for the treatment of knee OA pain. Currently approved corticosteroids are very effective at reducing pain for a short duration late in the disease but can expose the body to unwanted local and systemic side effects.
EP-104IAR endeavours to provide long-term pain relief with fewer unwanted side effects. It encapsulates a highly potent corticosteroid (fluticasone propionate) within a microns-thin polymer membrane, part of Eupraxia's patented technology platform.
Injected into the knee, EP-104IAR is intended to diffuse drug slowly into the knee joint providing therapeutic concentrations for up to six months. This has the potential dual advantage of providing long-duration pain relief with fewer systemic side effects. An enhanced safety profile would also benefit the estimated 70% of knee OA patients that experience pain in both knees by allowing simultaneous treatment of both affected joints.
In contrast to immediate release steroids, a non-clinical study of EP-104IAR suggests a cartilage sparing effect, which could provide a safer treatment alternative for those afflicted with chronic OA pain. The product has also been designed with physician convenience in mind - targeting a long shelf life, no refrigeration and easy integration into existing delivery techniques.
About Eupraxia Pharmaceuticals Inc.
Eupraxia is a clinical-stage biotechnology company focused on the development of locally delivered, extended-release alternatives to currently approved drugs. Each of Eupraxia's product candidates has the potential to address therapeutic areas with high unmet medical need and strives to provide improved patient benefit by delivering targeted, long-lasting activity with fewer side effects.
Eupraxia's lead product candidate, EP-104IAR, is currently in Phase 2 development for the treatment of pain due to OA of the knee. In addition to EP-104IAR, Eupraxia is developing a pipeline of earlier-stage long-acting formulations. Potential pipeline candidates include a range of drugs for indications such as postsurgical pain (EP-105), and post-surgical site infections (EP-201), each designed to improve on the activity and tolerability of approved drugs. For further details about Eupraxia, please visit the Company's website at: www.eupraxiapharma.com.
Forward-Looking Statements: Some statements in this release may contain forward-looking statement and forward looking information within the meaning of Canadian securities laws. [ MORE ] |
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