Eupraxia Pharmaceuticals' (EPRX.TO) first-quarter loss narrowed, the company said after trade on Tuesday.
The company, which is using its Diffusphere technology to optimize localized, controlled drug delivery for diseases with significant unmet need, reported a loss of US$12.7 million, or US$0.23 per share, from a loss of US$6.8 million or US$0.21, for the prior year period. Analysts polled by FactSet had expected a loss of US$0.19 per share.
The increased loss was primarily due to higher research and development costs as a result of doubling the size of the RESOLVE Part 2 trial and general and administrative costs, a statement noted.
Eupraxia reported cash of US$58.5 million and short-term investments of $80.4 million as of March 31, up from a cash balance of $80.6 million at the end of the fourth quarter of 2025. These funds are being used to fund clinical trials.
The company anticipates that existing cash reserves, and proceeds from the future exercise of in-the-money warrants, will be sufficient to fund it into the second half of 2028.
"The clinical data reported this quarter further reinforces the potential for EP-104GI to become an important new treatment for Eosinophilic Esophagitis (EoE)," said chief executive Dr. James Helliwell. "With the capital from the recent financing, we are excited to continue development of EP-104GI in EoE and accelerate additional clinical programs in new indications within the GI field, where we believe that EP-104GI has the opportunity to work due to the Diffusphere's ability to provide hyper-targeted delivery into diseased areas over a long period of time without the typical systemic exposure profile."
Eupraxia shares closed up $0.39, to $10.51 on the Toronto Stock Exchange.