Eupraxia Pharmaceuticals Inc. (NASDAQ:EPRX) completed a public offering of 6,428,574 common shares at a price of US$7.00 per share, accompanied by pre‑funded warrants that allow the purchase of up to 1,428,571 shares. The transaction is expected to generate gross proceeds of approximately US$55 million before underwriting fees and other expenses, and the offering is scheduled to close on February 20 2026.
The company will use the net proceeds primarily to advance its EP‑104GI program for eosinophilic esophagitis, support additional clinical studies, and fund general corporate purposes such as research and development, business development, and capital expenditures. The EP‑104GI program is currently in a Phase 1b/2 RESOLVE trial, with top‑line data expected in the third quarter of 2026, and the company is exploring additional gastrointestinal indications for the drug.
Eupraxia’s cash position was US$89 million as of September 30 2025, following an $80.5 million raise in September. The new offering extends the company’s projected funding runway into the first half of 2028, providing a cushion for late‑stage development and pipeline expansion.
The company’s proprietary Diffusphere extended‑release technology underpins EP‑104GI and other pipeline candidates, offering targeted, controlled drug delivery that could broaden the therapeutic reach of its products.
Investors reacted negatively to the announcement, largely because the offering price of US$7.00 represents a discount to the company’s then‑trading price and introduces dilution. Despite the market’s short‑term concerns, the financing is essential for sustaining the company’s clinical program and maintaining its competitive position in the specialty‑drug market.
The timing of the offering reflects the company’s need to secure additional capital to support the late‑stage development of EP‑104GI and to expand its pipeline. Previous funding rounds had reduced the company’s cash reserves, and the new capital infusion is intended to keep the company on track for the anticipated data releases and potential regulatory submissions.
Overall, the offering provides Eupraxia with the necessary resources to advance its lead program and support future growth, while the market’s focus on dilution underscores the importance of balancing capital needs with shareholder value.
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