Eupraxia Pharmaceuticals (NASDAQ:EPRX) has secured a long-term financial runway, shifting focus toward pivotal data readouts for its lead gastrointestinal program following a successful fourth quarter and a transformative February financing.
The Victoria, B.C.-based biotechnology company reported a net loss of $16.7 million for the fourth quarter ended Dec. 31, 2025, compared to $7.5 million in the prior-year period.
The increased burn reflects a ramp-up in research and development for the RESOLVE trial, a Phase 1b/2a study evaluating EP-104GI for eosinophilic esophagitis (EoE).
Despite the loss, Eupraxia ended 2025 with $80.5 million in cash—a figure that was further bolstered by a $63.2 million public offering that closed on Feb. 20, 2026.
Management now anticipates that this capital, combined with existing resources, will fund operations into the second half of 2028.
The financial stability arrives as the company reports "near-complete normalization" of tissue health in its RESOLVE trial.
Data released in early 2026 showed that patients receiving the highest dose of EP-104GI—an extended-release fluticasone propionate injection—achieved a 97% improvement in tissue health markers at 12 weeks.
Most notably, clinical remission was maintained through 52 weeks in a majority of patients, reinforcing the potential for EP-104GI to serve as a once-yearly treatment for the chronic inflammatory condition.
Eupraxia’s proprietary Diffusphere™ technology is the core driver of these results.
Unlike traditional steroids that pass quickly through the digestive tract, Diffusphere uses microscopic polymer beads to provide a steady, localized release of medication directly into the esophageal wall, minimizing the systemic side effects typically associated with long-term steroid use.
Looking ahead, the company is preparing for a high-impact year.
Top-line data from the randomized, placebo-controlled Phase 2b portion of the RESOLVE trial is expected in the third quarter of 2026.
Additionally, Eupraxia plans to leverage its new capital to expand the EP-104GI platform into other gastrointestinal indications, including esophageal strictures and fibrostenotic Crohn’s disease.