Eupraxia Pharmaceuticals stock price rises after $63.2 million funding

Investing.com – Eupraxia Pharmaceuticals Inc. (NASDAQ:EPRX) (TSX:EPRX) stock rose 4.7% on Friday after the company completed a public offering, raising approximately $63.2 million in total proceeds.

This clinical-stage biotech company completed the issuance of 7,607,145 common shares at $7.00 per share, along with pre-financing warrants that can purchase up to 1,428,571 common shares at a price of $6.99999 per warrant. The offering included the underwriters’ full exercise of their option to purchase additional shares.

Cantor and LifeSci Capital served as joint bookrunners for the offering, with Bloom Burton and Craig-Hallum acting as co-managers.

The company plans to use the net proceeds primarily to continue advancing the development of EP-104GI for eosinophilic esophagitis, including completing ongoing preclinical studies and Phase 2 clinical trials. Funds will also support preparations for Phase 3 trials, related regulatory filings, and manufacturing activities.

Eupraxia also intends to accelerate clinical research of EP-104GI for other gastrointestinal indications, including esophageal strictures and fibrotic Crohn’s disease. Part of the proceeds will be used for the development of additional pipeline candidates, business expansion plans, and general corporate purposes.

Eupraxia CEO James Helliwell stated, “We are pleased to complete this financing, which enables us to significantly expand our pipeline, reach multiple additional development milestones for EP-104GI in eosinophilic esophagitis, and make substantial progress toward commercialization readiness.”

The company leverages its proprietary Diffusphere technology, aimed at optimizing localized controlled-release delivery for applications with significant unmet needs.

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