Why did EPRX's operating expenses surge in Q4 2024?

Eupraxia Pharmaceuticals' operating expenses surged in Q4 2024 due to several significant factors: 1. **Increased Investment in Drug Development**: Eupraxia has been actively developing its proprietary DiffuSphere™ technology, which requires substantial investment in clinical trials and research. The company's focus on expanding the capabilities of this technology, as evidenced by the positive data from its Phase 2a Eosinophilic Esophagitis program, has likely led to higher expenses related to these trials and the refinement of its drug delivery systems. 2. **Scalupation of Operations**: Eupraxia's successful $44.5 million financing in Q4 2024 provides the necessary capital to expand its operations, including hiring more personnel and establishing new facilities to support the increased scope of its clinical trials and manufacturing requirements. This scaling up of operations naturally leads to higher expenses, such as salaries, overhead, and infrastructure costs. In summary, the surge in operating expenses is a result of Eupraxia's aggressive research and development efforts, including the advancement of its proprietary technology and the expansion of its operations to support these initiatives.