William Blair on Monday initiated coverage on Eupraxia Pharmaceuticals Inc. (NASDAQ:EPRX), a clinical-stage biotechnology company focused on the development of locally delivered, extended-release products.
Eupraxia’s lead drug EP-104GI is currently in a Phase 1b/2 RESOLVE trial for eosinophilic esophagitis (EoE).
Last week, Eupraxia shared symptom data from patients in the two highest dose cohorts from its ongoing Phase 1b/2a part of the RESOLVE trial.
Early Symptom Data Shows Dose-Dependent Improvement
The trial showed that patients in the highest dose cohort (n=3) had an average reduction of 4 points in their symptom scores compared to baseline.
In January, Eupraxia reported 12-week and 36-week tissue health data from the Phase 1b/2a portion of its ongoing RESOLVE trial.
At 12 weeks, patients receiving the highest dose (8 mg/site) showed the strongest improvement from baseline, approaching near-complete normalization of esophageal tissue.
At 36 weeks, patients in the 4 mg/site cohorts sustained the tissue health gains observed at week 12.
William Blair initiated coverage of Eupraxia with an Outperform rating and fair value estimate of $14.
Sanofi SA (NASDAQ:SNY)/Regeneron Pharmaceuticals Inc.’s (NASDAQ:REGN) Dupixent, the only FDA-approved chronic therapy for EoE, requires weekly injections and still leaves a subset of patients inadequately controlled, highlighting unmet need.
Analyst Sees Blockbuster Potential For Eupraxia In Large Market
Analyst Lachlan Hanbury-Brown sees a meaningful opportunity for a safe, durable, once-yearly treatment administered during routine endoscopy.
With over 500,000 U.S. patients, limited treatment options, and rising prevalence, EP-104GI represents a sizable market opportunity, with peak sales potential exceeding $900 million.
Pipeline Expansion And Management Strength Add Confidence
William Blair views the company's plan to expand development into additional GI indications over the next year as a positive step toward maximizing EP-104's value.
The analyst also highlights strong management and early clinical data indicating a differentiated profile targeting a large market opportunity.
EPRX Stock Price Activity: Eupraxia shares were up 3.24% at $7.325 at the time of publication on Monday, according to Benzinga Pro data.
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