Eupraxia reports progress in EoE drug trial with promising results

Published 25/02/2025, 13:06
Eupraxia reports progress in EoE drug trial with promising results

VICTORIA, BC - Eupraxia Pharmaceuticals Inc. (TSX: EPRX) (NASDAQ: EPRX), a biotechnology firm specializing in precision drug delivery with a market capitalization of $114 million, has announced encouraging clinical data from its RESOLVE Phase 1b/2a trial, which is testing EP-104GI for eosinophilic esophagitis (EoE), a disease causing pain and difficulty swallowing. According to InvestingPro data, the company’s stock has surged 41% over the past six months, reflecting growing investor confidence in its clinical programs.

The latest findings from the trial indicate that Cohort 6, which received the highest dose of EP-104GI to date, exhibited the most significant symptom relief and tissue health improvement at 12 weeks. Moreover, Cohort 5 showed continuous symptom score improvements at 24 weeks. Across Cohorts 3 to 6, the data revealed a clear dose-response relationship, with higher doses correlating to better outcomes. While the clinical results are promising, InvestingPro analysis shows the company maintains a healthy financial position with a current ratio of 4.17, indicating strong ability to meet short-term obligations despite ongoing R&D investments.

No serious adverse events or cases of oral or gastrointestinal candidiasis were reported in any of the six cohorts, a notable outcome as such complications are common in EoE patients treated with steroids.

The trial’s sixth cohort, which involved administering 16 injections of 4 mg EP-104GI to the lower three-quarters of the esophagus, showed a 46% average reduction in symptom severity and a 94% mean reduction in peak eosinophil counts at 12 weeks. Tissue health scores also displayed significant improvements.

Eupraxia’s CEO, Dr. James Helliwell, expressed optimism about the results, suggesting that the localized delivery of EP-104GI could become a new standard of care for EoE. The company plans to explore higher dosing levels and expanded esophageal coverage in upcoming cohorts.

Cohort 7 is fully enrolled, with 12-week data expected in the second quarter of 2025. Eupraxia will host a webinar on Wednesday to discuss the RESOLVE trial data further.

EoE is an inflammatory condition where white blood cells accumulate in the esophagus, leading to discomfort and swallowing difficulties. It affects over 450,000 individuals in the U.S. alone and is recognized as a growing health concern. For investors tracking this potential market opportunity, InvestingPro offers 12 additional key insights about Eupraxia’s financial health and market performance, including detailed profitability metrics and growth indicators.

Eupraxia’s approach, which focuses on localized, extended-release drug delivery, aims to reduce adverse events and improve treatment outcomes. Alongside the EoE treatment, the company is also developing therapies for other conditions, such as pain and inflammatory gastrointestinal diseases.

This report is based on a press release statement from Eupraxia Pharmaceuticals Inc.

In other recent news, Eupraxia Pharmaceuticals has been in the spotlight with several key developments. Craig-Hallum initiated coverage on the company, assigning a Buy rating and setting a price target of $12. The firm emphasized the potential of Eupraxia’s DiffuSphere platform, which has shown promise in delivering long-lasting, localized drug delivery. This has been demonstrated through clinical data for knee osteoarthritis and eosinophilic esophagitis, highlighting its potential to enhance patient outcomes.

Additionally, Eupraxia Pharmaceuticals filed a regulatory update with the U.S. Securities and Exchange Commission, though specific details of the update were not disclosed. This filing, signed by the newly appointed CFO Alex Rothwell, underscores the company’s compliance with regulatory requirements. Rothwell, who previously served as CFO from 2018 to 2021, has rejoined Eupraxia following Bruce Cousins’ retirement. His extensive experience in Canadian capital markets and investment banking is expected to contribute positively as the company advances its clinical programs.

CEO James Helliwell expressed confidence in Rothwell’s leadership, noting his valuable expertise. Eupraxia is actively exploring additional indications for its pipeline, including oncology and infectious diseases, leveraging its DiffuSphere technology. These recent developments reflect the company’s ongoing efforts to innovate and expand its therapeutic offerings.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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