Eupraxia Pharmaceuticals (EPRX) AI Stock Analysis

• Market Cap: C$274.91M
• Dividend Yield: N/A
• Average Volume (3M): 32.61K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.74
• Revenue Growth: N/A
• EPS Growth: N/A
• Country: CA
• Employees: 33
• Sector: Healthcare
• Sector Strength: 37
• Industry: Biotechnology
• EPS (TTM): -0.26
• Shares Outstanding: 35,849,354
• 10 Day Avg. Volume: 19,668
• 30 Day Avg. Volume: 32,612
• PEG Ratio: -0.87
• Price to Book (P/B): 6.71
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -6.40
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: C$14.23
• Price Target Upside: 88.48% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 5

• Rating: 45 Neutral
• Price Target: ―

Eupraxia Pharmaceuticals' overall score reflects its challenging financial position with no revenue and ongoing net losses. While recent positive trial results and operational progress are encouraging, the company's reliance on external financing and high liabilities pose significant risks. Technical indicators suggest some positive momentum, but valuation challenges persist due to lack of profitability. The strengthened financial position through capital raise is a mitigating factor but does not offset the underlying financial instability.

Positive Factors

Efficacy Data

The company's commentary around early results on safety and efficacy of Cohort 8 in the Phase 2a portion of the RESOLVE study was very positive and supports the potential for EP-104GI.

Market Potential

Eupraxia has the potential for a best-in-class treatment for the ever-growing eosinophilic esophagitis (EoE) market, and has shown the potential for an annual treatment of EP-104GI in this condition, which could grow to a ~1M addressable patient market.

Safety Profile

EP-104GI demonstrated a favorable safety profile, with plasma fluticasone levels remaining low and consistent, and no serious adverse events reported.

Negative Factors

Trial Complexity

The Phase 2b portion of the RESOLVE study will enroll at least 60 patients across up to 25 global sites, randomized in a 1:1:1 ratio to receive one of two doses of EP-104GI or placebo.

Eupraxia Pharmaceuticals Business Overview & Revenue Model

Company Description

Eupraxia Pharmaceuticals Inc., a clinical stage biotechnology company, engages in the discovery, development, and marketing of technologies in the biotechnology sector. The company's lead product candidate is EP-104IAR, which is in a Phase II clinical trial for the treatment of unmet medical needs and for pain relief for knee osteoarthritis, as well as under development for treating canine and equine osteoarthritis. Its products in development also include EP-201, an antibiotic for post-surgical site infections; and EP-105, an extended-release post-surgical anesthetic for post-surgical pain. In addition, the company develops product candidates for oncology. The company was formerly known as Plaza Capital Partners Inc. and changed its name to Eupraxia Pharmaceuticals Inc. in May 2012.Eupraxia Pharmaceuticals Inc. was incorporated in 2011 and is headquartered in Victoria, Canada.

How the Company Makes Money

Eupraxia Pharmaceuticals primarily generates revenue through the development and potential commercialization of its drug candidates. The company is focused on advancing its lead product candidates through clinical trials, seeking regulatory approval, and ultimately bringing these products to market. Revenue is expected to be derived from product sales, licensing agreements, and strategic partnerships. Eupraxia may engage in collaborations with larger pharmaceutical companies to co-develop or commercialize its products, thus gaining access to additional resources and market channels. However, as a clinical-stage company, Eupraxia's current revenue is likely limited and largely dependent on funding from investors, grants, or milestone payments from partnerships until its products receive regulatory approval and can be commercialized.

Eupraxia Pharmaceuticals Financial Statement Overview

Summary

Eupraxia Pharmaceuticals faces significant financial challenges, marked by zero revenue and ongoing net losses. Despite a strong cash position, reliance on external financing and persistent cash burn due to negative operating cash flows indicate financial instability.

Income Statement

Eupraxia Pharmaceuticals has recorded consistent negative revenue growth with no reported revenue over the years, resulting in substantial net losses. Gross profit and EBIT margins are negative, indicating significant operating challenges without revenue generation.

Balance Sheet

The company maintains a strong cash position relative to its liabilities, evidenced by a high equity ratio. However, the debt-to-equity ratio is skewed by negative equity in past years, and high liabilities pose a risk, despite recent improvements in stockholders' equity.

Cash Flow

Persistent negative operating and free cash flows highlight liquidity challenges. Cash flow from financing has been the main source of liquidity, indicating reliance on external funding. Free cash flow growth remains negative, suggesting ongoing cash burn.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	0.00	0.00	0.00	0.00	0.00
Gross Profit	-235.25K	-209.91K	-193.27K	-111.53K	-116.81K
EBITDA	-33.72M	-37.40M	-22.14M	-21.96M	-2.01M
Net Income	-34.94M	-37.39M	-23.26M	-22.99M	-4.00M
Balance Sheet
Total Assets	34.94M	26.72M	25.88M	31.22M	1.45M
Cash, Cash Equivalents and Short-Term Investments	33.10M	19.34M	24.74M	29.90M	150.13K
Total Debt	71.86K	10.45M	10.55M	9.56M	12.77M
Total Liabilities	4.46M	25.55M	14.51M	11.67M	23.12M
Stockholders Equity	33.40M	2.22M	12.86M	20.39M	-21.21M
Cash Flow
Free Cash Flow	-30.10M	-28.02M	-19.08M	-15.07M	-403.93K
Operating Cash Flow	-29.99M	-27.92M	-18.78M	-14.64M	-403.93K
Investing Cash Flow	-75.16K	-99.03K	8.70M	-14.45M	24.62K
Financing Cash Flow	45.78M	27.84M	13.52M	49.92M	-626.64K

Eupraxia Pharmaceuticals Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 7.55
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:EPRX, the sentiment is Positive. The current price of 7.55 is above the 20-day moving average (MA) of 7.37, above the 50-day MA of 6.25, and above the 200-day MA of 5.04, indicating a bullish trend. The MACD of 0.27 indicates Positive momentum. The RSI at 62.29 is Neutral, neither overbought nor oversold. The STOCH value of 54.80 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TSE:EPRX.

Eupraxia Pharmaceuticals Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
MDNA	53 Neutral	C$57.02M	―	-97.22%	―	―	-67.03%
Sector *	52 Neutral	kr5.63B	10.38	-63.86%	1.96%	27.11%	26.73%
DRUG	48 Neutral	C$312.44M	―	-11.21%	―	―	86.45%
EPRX	45 Neutral	C$274.91M	―	-108.05%	―	―	―
ARCH	26 Underperform	C$109.08M	―	90.17%	―	―	-78.59%
FENC	―	$241.81M	―		―	―	―
NGENF	―	$198.13M	―	-248.14%	―	―	―

Eupraxia Pharmaceuticals Corporate Events

Eupraxia Pharmaceuticals Reports Strong Q4 2024 Results and Operational Progress

Eupraxia Pharmaceuticals announced its fourth quarter 2024 financial results, highlighting significant advancements in its RESOLVE trial for eosinophilic esophagitis and a strengthened financial position with a C$44.5 million capital raise. The company reported a reduced net loss due to lower research and development costs and increased cash reserves, positioning it well for continued operations into 2026. Key operational updates included leadership changes and positive trial data, which may enhance its industry standing and stakeholder confidence.

Eupraxia Pharmaceuticals Reports Promising Trial Results for Eosinophilic Esophagitis Treatment

Eupraxia Pharmaceuticals has announced positive results from its RESOLVE Phase 1b/2a trial for EP-104GI, a treatment for eosinophilic esophagitis. The trial showed significant improvements in symptom relief and tissue health, particularly in Cohort 6, with no serious adverse events reported. The data suggests that higher doses and increased esophageal coverage of EP-104GI lead to better outcomes, encouraging further exploration of its potential benefits.