Takeaways From Our West Coast NDR with Eupraxia

研报英文原文证据摘录

Takeaways From Our West Coast NDR with Eupraxia

June 24, 2026

Valuation

We use a probability-adjusted discounted cash flow analysis to value EPRX shares. We

model cash flows out to 2035 and assume a discount rate of 12% with a 0% terminal growth

assumption. The estimated equity value is ~$1.5B, which includes cash. This leads us to a

12-month price target of $19/share. Our calculation includes estimated cash and shares

outstanding at end-1Q27E.

Risks

Eupraxia Pharmaceuticals is a clinical-stage company, and investment is subject to risk.

These risks include, but are not limited to:

Clinical trial risk: Clinical development is a risky enterprise that could result in a negative

outcome. Failure to demonstrate statistical and clinical significance or a compelling drug

efficacy/safety profile could lead to rejection of regulatory approval in new or expanded

indications.

Regulatory risk: As with any company, the main business of which is drug development and

commercialization, Eupraxia is subject to the very stringent regulatory requirements of the

FDA and other international regulatory agencies to have its new drugs or new indications

for them, approved. Promotion of its approved drug products is also stringently regulated

by the FDA and related agencies throughout the world.

Commercial/Competitive risk: There are a number of approved therapies in eosinophilic

esophagitis (EoE) and osteoarthritis of the knee (OAK). Competitors can add pressure,

limiting potential adoption of Eupraxia’s therapies pending approval. In addition, clinicians

may be reluctant to change prescribing practices due to personal clinical experience with

other therapies. Also, failure to execute commercially could diminish Eurpraxia’s market

potential.