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Investing.com - Cantor Fitzgerald has reiterated its Overweight rating and $11.00 price target on Eupraxia Pharmaceuticals (NASDAQ:EPRX), citing promising durability data for the company’s EP-104GI treatment. The stock has surged over 75% in the past six months, with analysts maintaining a Strong Buy consensus. According to InvestingPro, analyst targets range from $11 to $12, suggesting significant upside potential.
The firm highlighted that EP-104GI demonstrated efficacy lasting approximately 12 months based on data from Cohorts 5-7, with significant tissue responses observed as early as week 4 in the highest dose group.
Cantor Fitzgerald expressed increased confidence in the treatment’s potential following Eupraxia’s decision to add a second Phase 2b dose of 8 mg per injection and upsize the Phase 2b trial, suggesting these changes could help demonstrate significant benefits compared to placebo.
The research firm emphasized that while steroids are known to be effective in treating eosinophilic esophagitis (EoE), EP-104GI addresses the critical delivery challenge by targeting steroids to the esophagus without increasing overall drug exposure.
Cantor Fitzgerald projects peak U.S. annual sales for the treatment at approximately $900 million and noted that Eupraxia’s stock is currently trading at a substantial discount to these estimates. The company currently maintains a market capitalization of $280.75 million, with InvestingPro analysis indicating Fair financial health. Subscribers can access 6 additional ProTips and comprehensive financial metrics to better evaluate the investment opportunity.
In other recent news, Eupraxia Pharmaceuticals Inc. reported significant progress in its RESOLVE trial for eosinophilic esophagitis (EoE). Patients receiving the 8 mg dose per injection showed the largest improvements in tissue health outcomes and eosinophil reduction observed to date. This highest dose will be utilized in the ongoing Phase 2b portion of the study, following endorsement from the RESOLVE Safety Committee and the company’s Clinical Advisory Board. Additionally, Cantor Fitzgerald has maintained its Overweight rating on Eupraxia Pharmaceuticals with an $11 price target, emphasizing the promising approach to treating EoE in a growing market.
Eupraxia also successfully closed a public offering, raising approximately $80.5 million in gross proceeds by selling 14,636,363 common shares at $5.50 each. This offering included the full exercise of the underwriters’ option to purchase additional shares. Earlier, the company had priced a $70 million public offering at the same share price, with an option for underwriters to purchase additional shares. These financial maneuvers are part of Eupraxia’s strategy to support its ongoing clinical developments.
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