Eupraxia’s nine-month loss nearly doubles to $42.4 million, R&D jumps (NASDAQ: EPRX)

Posted by on Nov 11th, 2026

What happened

Eupraxia Pharmaceuticals Inc. (NASDAQ: EPRX) lost $42.4 million in the first nine months of 2026, up from $21.88 million a year earlier. The clinical-stage company has no revenue from operations, according to its unaudited interim financial statements.

OptimistFi calculates the nine-month loss as 93.7% above the same period of 2025. The third-quarter loss grew faster, to $15.25 million from $6.37 million a year earlier.

The company ended September with $75.18 million in cash and cash equivalents and $51.25 million in short-term investments. It bought $79.72 million of those investments during the nine months and redeemed $30.07 million. At Dec. 31, 2025, cash stood at $80.56 million and the company held no short-term investments.

On Sept. 8, the company began trading on the Nasdaq Global Select Market.

Key numbers

Metric Latest Change Source
Net loss, nine months ended Sept. 30 $42.4 million from $21.88 million, +93.7% SEC 6-K, change calculated by OptimistFi
Research and development expense, nine months $34.8 million from $13.46 million, +158.5% SEC 6-K, change calculated by OptimistFi
General and administrative expense, nine months $15.42 million from $8.81 million, +75.1% SEC 6-K, change calculated by OptimistFi
Cash used in operating activities, nine months $34.57 million from $18.82 million, +83.6% SEC 6-K, change calculated by OptimistFi
Cash and cash equivalents, Sept. 30, 2026 $75.18 million SEC 6-K
Short-term investments, Sept. 30, 2026 $51.25 million SEC 6-K

Read more: Eupraxia Pharmaceuticals (EPRX) company research

Where the spending went

Research and development drove the increase. Nine-month R&D expense was $34.8 million, up 158.5% from $13.46 million, by OptimistFi's calculation. General and administrative expense rose 75.1% to $15.42 million from $8.81 million.

Cash used in operating activities was $34.57 million, up 83.6% from $18.82 million a year earlier. Accrued research and development liabilities were $7.21 million at Sept. 30, against $2.96 million at Dec. 31, 2025.

Two other items cushioned the loss. Interest income rose to $3.69 million from $0.75 million. A foreign exchange gain of $4.18 million replaced a $0.35 million loss a year earlier. The gain is a non-operating item and does not mean operations improved.

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How the cash was raised

Financing, not product sales, supplied the cash. Financing activities provided $80.24 million in the nine months. That included $49.36 million net from a public offering, $9.27 million net from pre-funded warrants, $16.91 million from warrant exercises and $4.70 million from option exercises.

The Feb. 20 offering sold 7,607,145 common shares at $7.00 and pre-funded warrants for up to 1,428,571 shares at $6.99999. Gross proceeds were $63.25 million.

Earlier rounds still count in the share total. A public offering that closed Sept. 24, 2025 issued 14,636,363 common shares at $5.50 for $80.5 million gross, including 1,909,090 shares from the over-allotment option. A private placement on Oct. 31, 2024 issued 8,905,638 convertible preferred shares at C$5.00 for $32.0 million (C$44.53 million) gross.

Common shares outstanding rose to 67,241,876 at Sept. 30 from 51,939,206 at Dec. 31, 2025. Preferred shares outstanding were 8,295,638 after 60,000 converted into common shares. The preferred shares convert automatically if common stock trades at C$15.00 on average daily volume of at least 50,000 shares over a rolling six months, among other triggers.

Why it matters

OptimistFi has argued that Eupraxia's stock works only if its clinical programs produce approvable, partnerable drug assets before burn and dilution consume the balance sheet. This filing leaves that view mixed.

The company can still fund its spending. Warrant and option holders supplied cash alongside the underwritten offerings. The strain shows in the share count, which grew through offerings and exercises, and in a rising burn rate.

The company says it will periodically have to raise funds. It says there is no assurance it can do so in the future, and that financing may not be available on acceptable terms.

What the Auritec license takes

Eupraxia LLC holds an exclusive license from Auritec Pharmaceuticals Inc. to the Plexis Platform for delivering fluticasone in all medical fields except otolaryngology and eye conditions. It owes Auritec a 4% royalty on net sales of licensed products, with some reductions.

Auritec would also share in any deal proceeds. Eupraxia LLC agreed to pay Auritec 10% to 30% of non-royalty monetization revenue, up to $100 million. The percentage falls as development advances. It is 20% after a successful Phase 2b study and before a successful Phase 3 study.

Eupraxia LLC agreed to pay up to $30 million in milestones. It paid the first one in 2024 on completing the Phase 2b study. The remaining schedule tops out at $25 million, including $5 million for the first calendar year in which aggregate net sales exceed $500 million. Those are caps, not amounts owed today.

What's next

The next quarterly report covers the quarter ending Dec. 31, 2026. If cash used in operations keeps climbing while cash and short-term investments fall, the dilution risk in OptimistFi's view grows. A slower burn against the current balances would ease it.

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Sources

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Originally published on OptimistFi, evidence-first equity research. More at optimistfi.com.