Eupraxia Pharma drops on $70 mln equity raise

U.S.-listed shares of Eupraxia Pharmaceuticals EPRX.O down 9.8% before the bell to $6.00 after overnight follow-on priced

Canadian biotech firm late Mon said it sold ~12.7 mln shares at $5.50 for $70 mln gross proceeds

Offering priced at 17.3% discount to stock's last close

Eupraxia intends to use net proceeds to advance its drug pipeline, including completion of ongoing preclinical studies and clinical trials, among other uses

Co currently has two distinct clinical development programs, one targeting eosinophilic esophagitis (“EoE”), pain and difficulty with swallowing food, and the second targeting chronic osteoarthritis (“OA”) pain in the knee, per the offering prospectus

Cantor Fitzgerald and LifeSci Capital are joint bookrunners for offering

With ~36 mln shares outstanding, Eupraxia has roughly $240 mln market cap

EPRX shares on Mon finished up 11.6%, stretching YTD rise to ~110%