MANAGEMENTS DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
AND RESULTS OF OPERATIONS FOR THE THREE MONTHS ENDED MARCH 31, 2024
This managements discussion and analysis (MD&A) has been prepared as of May 8, 2024 and should be read in conjunction with
the unaudited consolidated financial statements of Eupraxia Pharmaceuticals Inc. (Eupraxia or the Company) as at and for the three months ended March 31, 2024 and the related notes thereto and in
conjunction with the audited consolidated financial statements of the Company and related notes thereto for the years ended December 31, 2023 and 2022 which are prepared in accordance with generally accepted accounting principles in the United
States of America (U.S. GAAP) as issued by the Financial Accounting Standards Board (which the Company transitioned to in 2023). In addition, comparative figures, which were previously prepared in accordance with IFRS Accounting
Standards as issued by the International Accounting Standards Board (IASB) have been adjusted as required to be compliant with the Companys accounting policies under US GAAP. All dollar amounts are expressed in U.S.
dollars unless otherwise noted. In this MD&A, unless the context requires otherwise, references to we or our are references to Eupraxia. Additional information relating to the Company is available in our annual
information form (AIF), filed on SEDAR+ and EDGAR on April 1, 2024.
All regulatory filings
to-date and communication from the Company have been made referencing EP-104IAR. In the interest of greater clarity for investors, the Company will use EP-104IAR when referring to the product candidate that is intended for intra-articular (IAR) injections for indications such as osteoarthritis (OA), EP-104GI when referring to the product candidate that is intended for submucosal injections in the GI tract for indications such as eosinophilic esophagitis (EoE), and simply refer to the product
candidate as EP-104 in conjunction with topics that are related to both EP-104IAR and EP-104GI.
Change in Reporting Currency to the US Dollar
Effective
December 31, 2023, the Company changed its reporting currency to the US dollar (USD) from the Canadian dollar (CDN). As such, all prior amounts originally reported in CDN are now reported in USD. The
change in reporting currency was made to enhance comparability of the Companys results with other publicly traded companies in the life sciences industry. The Canadian dollar continues to be the functional currency of the Company.
The financial information for all prior periods is presented in U.S. dollars as if the U.S. dollar had been used as the reporting currency during those
periods.
Forward-Looking Statements
Certain
statements and information in this MD&A contain forward-looking statements or forward-looking information under applicable securities legislation that may not be based on historical fact, including, without limitation, statements containing the
words may, might, will, likely, could, would, should, expect, intend, plan, objective, goal,
outlook, anticipate, believe, estimate, predict, project, forecast, estimate, potential, target, seek,
contemplate, continue, design, and ongoing, or the negative of these terms or other comparable terminology, although not all forward-looking statements contain these words and similar expressions.
Forward-looking statements include estimates, plans, expectations, opinions, forecasts, projections, targets, guidance or other statements that are not statements of fact. Such forward-looking statements are made as of the date of this MD&A.
Forward-looking statements are necessarily based on estimates and assumptions made by us in light of our experience and perception of historical trends,
current conditions and expected future developments, as well as factors that we believe are appropriate. Forward-looking statements in this MD&A include, but are not limited to, statements relating to:
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the Companys business strategies and objectives, including current and future plans, expectations and
intentions; |
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the Companys intent to use capital resources previously identified for
EP-104IAR to continue the development of EP-104GI; |
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