This small Canadian pharma inventory is undervalued, analyst says

Analysis Capital analyst Andre Uddin reiterated a “Speculative Purchase” ranking and C$12.00 goal value for Eupraxia Prescribed drugs (Eupraxia Prescribed drugs Inventory Quote, Chart, Information, Analysts, Financials TSX:EPRX) following sturdy early medical information from the corporate’s eosinophilic esophagitis (EoE) program.

Victoria, B.C.–based mostly Eupraxia is growing EP-104IAR for osteoarthritis ache and EP-104GI, a brand new fluticasone-based injectable formulation for EoE, a continual inflammatory illness of the esophagus.

On Sept. 29, Eupraxia launched preliminary Cohort 9 information from its Section 1b EP-104GI examine, exhibiting a “hanging” Week 4 discount in EoEHSS Grade and Stage scores (–0.40 to –0.50) in contrast with –0.10 to –0.20 in lower-dose teams. Uddin mentioned the sturdy early response suggests Cohort 9 may ship even larger efficacy over time and “very probably strongly outperform Sanofi’s Dupixent” based mostly on Section 2 benchmarks.

Plasma fluticasone ranges had been briefly increased than the Flovent HFA reference early post-injection however declined quickly by Week 4, which Uddin mentioned poses no security concern. No severe opposed occasions or gastrointestinal candidiasis had been reported throughout cohorts, reinforcing the remedy’s security profile.

Eupraxia is increasing Section 2 enrollment from 60 to 120 sufferers, with two therapy arms (120mg and 160mg) and one placebo group, adopted for 52 weeks with a crossover at Week 26. High-line outcomes are anticipated within the second half of 2026, with FDA discussions on Section 3 design deliberate by year-end. Uddin anticipates a single registrational Section 3 examine with 150–300 sufferers, probably together with adolescents.

“The up to date dataset reinforces our confidence that EP-104GI has the potential to emerge as a best-in-class remedy and finally the usual of take care of EoE sufferers,” Uddin mentioned.

Eupraxia additionally strengthened its stability sheet with a US$70-million public fairness providing introduced Sept. 22, which was upsized to US$80.5-million after full train of the underwriters’ overallotment choice. In whole, 14.6 million shares had been issued at US$5.50 per share. Uddin estimates the corporate’s money place at US$89.5 million (C$124.6 million) as of Sept. 30, after charges and anticipated Q3 outflows.

Uddin mentioned EP-104GI continues to ship compelling information, with Cohort 9 particularly demonstrating sturdy dose-response, sturdy efficacy and a clear security profile, supporting its potential to change into the main remedy within the EoE area.

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