Eupraxia Pharmaceuticals is Delivering the Right Drug, to the Right Place, at the Right Time

• Eupraxia’s proprietary DiffuSphere™ technology precisely targets diseased tissues with approved drugs, significantly enhancing effectiveness and reducing side effects compared to traditional treatments.
• Its lead drug candidate has shown remarkable clinical effectiveness, delivering extended symptom relief safely for months, at significantly lower cost compared to current treatments.
• Analysts highlight Eupraxia’s substantial commercial opportunity, forecasting its innovative drug delivery system could outperform existing therapies and attract major pharmaceutical partnerships, driven by a supportive regulatory landscape prioritizing safer, targeted drug delivery.

“What makes our approach unique is that it doesn’t rely on inventing new drugs. Instead, the technology delivers well-known, safe medications where they’re needed, over a longer period, with fewer side effects...”
— Alex Rothwell, Eupraxia’s CFO

When it comes to treating disease, precision matters. That’s the simple premise driving Eupraxia Pharmaceuticals Inc. (TSX: EPRX | NASDAQ: EPRX), a company doing for drug delivery what GPS did for navigation.

The clinical-stage biotech company is turning the conventional approach to drug delivery on its head, using a proprietary technology to take known, approved drugs and deliver them exactly where they’re needed in your body, in precise doses, over a sustained period of time.

It’s an idea that sounds simple but the execution, both scientifically and commercially, is where Eupraxia is drawing attention.

“There’s no extended delivery mechanism for existing drugs to be delivered to specific areas for such long durations at such controlled doses … that’s what we’ve built,” said Alex Rothwell, Eupraxia’s CFO.

At the core of Eupraxia’s strategy is DiffuSphere™, a biodegradable microsphere system that delivers medication directly into diseased tissue, where it slowly releases the drug over time.

Instead of flooding the whole body like traditional pills or IVs, this approach keeps the drug working steadily and locally, avoiding harmful spikes and crashes and reducing, or eliminating, side effects. It gives the medicine a smoother, longer-lasting “life story” inside the body, making treatment more targeted, effective, and easier on patients.

“We’re not trying to figure out whether the drug molecule works … we already know it does. We’re focused on getting it where it needs to go, keeping it there for the right amount of time and releasing it at a steady, controlled rate,” said Rothwell.

The company’s lead candidate, EP-104, is being developed to treat two high-need conditions: knee osteoarthritis (OA) and eosinophilic esophagitis (EoE). In a recently completed 312-patient trial for OA, a single injection of EP-104 provided pain relief for up to six months without observed cartilage damage or systemic side effects.

According to Rothwell, “We had people with no pain and no apparent side effects for six months. That has never been done.”

The results are significant not just clinically, but commercially, as current steroid injections offer short-lived relief and often cause damage with repeated use.

For EoE, a painful and chronic inflammatory condition of the esophagus, Eupraxia’s early-stage data from its RESOLVE Phase 1b/2a trial is equally compelling.

Just one 48mg injection of its drug, EP‑104GI, reduced inflammation by 83% and cut patient symptoms in half and the effects lasted for nine months. That’s a big contrast to Sanofi’s Dupixent, a treatment that needs to be injected every week and costs more than US$100,000 a year. Eupraxia’s version? It costs a tiny fraction of that to make each dose.

That margin advantage is only part of the story. Because the active compound in EP‑104GI is a well-known corticosteroid, Eupraxia avoids the lengthy safety evaluations and manufacturing hurdles typically faced by biologics. And with a single injection potentially offering a year of relief, Eupraxia’s treatment has the potential to eliminate the need for frequent injections, improving adherence, and reducing costs for both patients and healthcare systems.

The disruptive potential hasn’t gone unnoticed by major pharmaceutical players.

“We’ve had several Big Pharma players come to us … they want to know how the hell did you do this?” Rothwell said.

That kind of unsolicited interest signals that Eupraxia is not merely advancing a single product but is establishing a versatile drug delivery platform with potential applications including immunology, oncology, and gastroenterology.

By revolutionizing drug delivery methods rather than the drugs themselves, Eupraxia is creating significant opportunities for partnerships and licensing that extend well beyond its initial two therapeutic areas, say analysts.

Research Capital, which maintains a Speculative Buy rating and a US $9.00 price target, calls the company “undervalued and under the radar,” noting that EP‑104GI “should significantly outperform Dupixent” if current results continue to hold.

Meanwhile, Raymond James has set a US$12 target, highlighting that “recent positive data further validate the value of the DiffuSphere platform … the upside is material.”

Craig-Hallum Capital, also targeting US$12, echoed that view, stating, “There’s now a path to becoming the first FDA-approved long-acting treatment for EoE.”

All three analysts agree Eupraxia isn’t a one-product story and that it’s building a platform that could reshape how drugs are delivered across multiple diseases.

Adding fuel to the company’s trajectory is a regulatory environment that increasingly favours Eupraxia’s model. In a June 2025 editorial published in the Journal of the American Medical Association, FDA Commissioner Dr. Martin Makary outlined that his agency wants to speed up approvals for safer, proven drugs that use new delivery methods.

“That’s exactly what we are doing by taking well-known approved and widely used-medications and delivering them in smarter, more targeted ways,” said Rothwell.

With a platform that aligns closely with the FDA’s new priorities and rising industry interest, Eupraxia is well-positioned to turn clinical validation into commercial success, not by reinventing medicine, but by rethinking how it’s delivered.

In today’s cost-conscious, outcomes-driven healthcare landscape, that may be the breakthrough that matters most.

A Top Pick in Bermuda

TSX: EPRX | NASDAQ: EPRX

1. As of market close on Monday, June 16 2025
2. As of market open on Monday, June 6 2025 after being selected as a Top Pick at the CEM Bermuda Capital Event

Named a Top Pick at the CEM Bermuda Capital Event, Eupraxia Pharmaceuticals is drawing investor interest for its precision drug delivery platform, strong clinical progress, and regulatory momentum, an edge CFO Alex Rothwell says is designed not just to win approvals, but to drive long-term commercial value.

What’s Eupraxia’s bigger opportunity beyond its current clinical programs?

There’s a lot more to the story. Eupraxia isn’t just a one or two-product company, it’s building a platform that could be used across many diseases where drug delivery has been a long-standing challenge. What makes our approach unique is that it doesn’t rely on inventing new drugs. Instead, the technology delivers well-known, safe medications where they’re needed, over a longer period, with fewer side effects. That has huge implications for conditions like cancer, gastrointestinal diseases, and other disorders.

We want to be in a position to go to pharma and say: that drug works but has delivery problems, we’ll solve it. But we want, say, 20% of the asset with licensing deals, partnerships, or royalties. This gives the company multiple revenue paths instead of relying on a single blockbuster.

I believe that our potential to have a diversified “portfolio” of assets is more valuable than a typical clinical-stage biotech — we have pipeline and partnering potential across the healthcare landscape.

How big is the market opportunity for Eupraxia’s technology?

Eupraxia is targeting multi-billion-dollar markets with its lead programs alone. The total US osteoarthritis market is worth an estimated US$7.6 billion, where current steroid injections offer only short-term relief and come with side effects. Eupraxia’s long-acting, single-dose solution could capture meaningful share, particularly through a commercial partnership. In eosinophilic esophagitis (EoE), a fast-growing chronic condition with limited options, analysts estimate a market exceeding US$3 billion annually. Sanofi’s Dupixent dominates but costs over US$100,000 per patient per year. Eupraxia’s EP-104GI has shown comparable results from a single injection at a fraction of the cost.

Beyond these two indications, the company sees platform potential across gastrointestinal and oncology applications.

We believe there’s a GI franchise here — Crohn’s strictures, esophageal scarring, Barrett’s Esophagus ... the solution isn’t a new drug … it’s better delivery

What’s next for Eupraxia, and is the company financially positioned to deliver?

Our immediate focus is on advancing our clinical program in eosinophilic esophagitis (EoE). We’ve seen encouraging results from our RESOLVE Phase 1b/2a trial, and we’re now moving into higher-dose cohort data while preparing for Phase 2b launch. We believe EP-104GI has the potential to be a best-in-class treatment, offering long-lasting relief from a single injection and these next milestones are critical to proving that.

On the commercial side, we’re actively exploring partnership or licensing opportunities for our osteoarthritis program. We’ve completed a 312-patient trial showing six months of pain relief with a single dose. But we don’t intend to commercialize OA ourselves. Our goal is to unlock its value through a partner and redirect our internal focus to programs like EoE and oncology, where we believe we can have an even bigger impact.

Financially, we’re in a strong position. We ended Q1 2025 with US$27.5 million in cash and about 5 million warrants at CAD$3.00, which gives us a runway into the third quarter of 2026. That flexibility means we can keep executing without the immediate pressure to raise capital, allowing us to focus on building value through data and strategic deals.

Our View

• Clinical Momentum is Meeting Market Need
  Eupraxia is executing with precision, delivering standout data in two multi-billion-dollar markets (OA and EoE). With a Phase 3 path emerging and a single-dose treatment profile that outperforms incumbents on cost, safety, and durability, the company is entering a pivotal inflection point for value creation.
• A Platform Built to Scale
  This is more than a one-product story. Eupraxia’s low-cost, high-impact delivery platform is attracting big pharma interest and unlocking high-margin opportunities across GI, oncology, and drug reformulation. The licensing piece of the model is capital-light, partnership-ready, and built for multiple assets.
• Right Model, Right Time
  Backed by US$27.5M in cash and aligned with the FDA’s fast-track priorities, Eupraxia is positioned to turn regulatory tailwinds into revenue catalysts. With multiple shots on goal and no near-term need for funding, it stands out as a de-risked, high-conviction opportunity in the biotech space.

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Fabian Dawson