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Eupraxia Pharmaceuticals Reports Second Quarter 2023 Financial Results
Wednesday, August 30, 2023
Victoria, BC, August 30, 2023--(T-Net)--Eupraxia Pharmaceuticals Inc. (TSX: EPRX), a Phase 2 clinical-stage biotechnology company with an innovative drug delivery technology platform, today announced its financial results (prepared in accordance with International Financial Reporting Standards) and operational highlights for the second quarter ended June 30, 2023.
All amounts are expressed in Canadian dollars unless otherwise indicated.
James Helliwell, Director and Chief Executive Officer, Eupraxia Pharmaceuticals Inc.
"During our second quarter, we announced exceptional results from our Phase 2b clinical trial of EP-104IAR for pain associated with knee osteoarthritis," said Dr. James Helliwell, CEO of Eupraxia.
"The EP-104IAR Phase 2b study is the largest study in the Company's history and we believe that the data is an important indicator on the drug candidate and our underlying diffusion technology. On the strength of the trial's data, we are working on the optimal path forward for EP-104IAR with key opinion leaders and preparing for an End of Phase 2 meeting with the FDA. Concurrently, we have made significant progress with our ongoing Phase 1b/2a trial of EP-104GI in eosinophilic esophagitis ("EoE"), which is actively recruiting patients. Based on progress to date, this open-label study remains on track for interim data beginning to read out in the third quarter of 2023."
Selected Operational and Financial Highlights for the Second Quarter
Second Quarter 2023 Financial Review
The Company continued to conduct its Phase 1b/2a in adult patients afflicted with EoE, prepare for top-line data readout in its 300-patient Phase 2 clinical trial of EP-104IAR for osteoarthritis in the quarter, and reported top-line data from the clinical trial of EP-104IAR in late June 2023.
The Company incurred a net loss of $8.0 million for the three months ended June 30, 2023, versus $6.3 million for the three months ended June 30, 2022. The increase in net loss was primarily driven by higher costs associated with the conduct of clinical trials.
The Company had cash and cash equivalents of $19.1 million as of June 30, 2023, up from $18.9 million at the end of the first quarter of 2023. Management believes its current cash is sufficient to fund the Company to the fourth quarter of 2023. As of June 30, 2023, the Company had 23,795,229 common shares issued and outstanding.
Subsequent to quarter end, the Company announced a non-brokered private placement of up to 3,142,857 common shares of the Company, at a price of C$7.00 per Share, for gross proceeds of up to C$22,000,000.
Editor's Note: The Private Placement is now closed and extends the cash runway now to the second quarter of 2024, according to the company.
About Eupraxia Pharmaceuticals Inc.
Eupraxia is a clinical-stage biotechnology company focused on the development of locally delivered, extended-release products that have the potential to address therapeutic areas with high unmet medical need. The Company strives to provide improved patient benefit and has developed a technology that delivers targeted, long-lasting activity with fewer side effects.
Eupraxia's lead product candidate, EP-104IAR, recently completed a Phase 2b clinical trial for the treatment of pain due to osteoarthritis of the knee. EP-104IAR met its primary endpoint and three of the four secondary endpoints. The EP-104 platform has expanded into gastrointestinal disease and has dosed patients in a Phase 1b/2a program to treat eosinophilic esophagitis. Eupraxia is also developing a pipeline of later- and earlier-stage long-acting formulations. Potential pipeline indications include candidates for both other inflammatory joint indications and oncology, each designed to improve on the activity and tolerability of currently approved drugs. For further details about Eupraxia, please visit the Company's website at: www.eupraxiapharma.com.
Financial Statements and Management Discussion & Analysis
Please see the unaudited interim condensed consolidated financial statements and related Management's Discussion & Analysis ("MD&A") for more details. The unaudited interim condensed consolidated financial statements for the quarter ended June 30, 2023, 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 sedarplus.ca and is also available on the Company's website at www.eupraxiapharma.com.
Notice Regarding Forward-looking Statements and Information This news release includes forward-looking statements and forward-looking information within the meaning of Canadian securities laws. Often, but not always, forward-looking information can be identified by the use of words such as "plans", "is expected", "expects", "scheduled", "intends", "contemplates", "anticipates", "believes", "proposes" or variations (including negative and grammatical variations) of such words and phrases, or state that certain actions, events or results "may", "could", "would", "might" or "will" be taken, occur or be achieved. Forward looking statements in this news release include statements regarding the Company's business strategies and objectives, including current and future plans and opportunities, expectations and intentions; statements regarding the Company's Phase 2 clinical trials; the ability of the Company to execute on its business strategy; the potential of Eupraxia's product candidates; the Company's expectations regarding its product designs, including with respect to patient benefit, duration, safety, effectiveness, and tolerability; the results gathered from studies of Eupraxia's product candidates and their potential support for dosing and target population; the Company's intention to pursue its Phase 3 development; the Company's beliefs with respect to the treatment of knee OA pain; the potential for the Company's technology to impact the drug delivery process; the competitive advantages of the Company's technology; the benefits to patients from the Company's drug platforms; and the translation of the Company's technologies and expansion of its offerings into clinical applications. Such statements and information are based on the current expectations of Eupraxia's management, and are based on assumptions, including but not limited to: future research and development plans for the Company proceeding substantially as currently envisioned; industry growth trends, including with respect to projected and actual industry sales; the Company's ability to obtain positive results from the Company's research and development activities, including clinical trials; and the Company's ability to protect patents and proprietary rights. Although Eupraxia's management believes that the assumptions underlying these statements and information are reasonable, they may prove to be incorrect. [ MORE ] |
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