Guggenheim raises Praxis Precision Medicines stock price target to $350 on positive trial data

Published 16/10/2025, 16:22
Guggenheim raises Praxis Precision Medicines stock price target to $350 on positive trial data

Investing.com - Guggenheim raised its price target on Praxis Precision Medicines Inc. (NASDAQ:PRAX) to $350.00 from $155.00 on Thursday, while maintaining a Buy rating following positive pivotal trial results for ulixacaltamide in essential tremor (ET). The stock, currently trading at $181.53 with a market capitalization of $3.85 billion, has surged over 90% in the past six months, according to InvestingPro data.

The price target increase comes after Praxis reported successful outcomes in both parallel group and randomized withdrawal studies, with the drug meeting pre-specified primary endpoints and key secondary endpoints. The studies’ modified endpoint timing and statistical plan were developed in consultation with the FDA. InvestingPro data shows the company maintains a strong financial position with more cash than debt on its balance sheet, though analysts have recently revised earnings expectations downward.

Praxis is currently working to meet ICH guidelines for safety exposure, requiring 300 patients for 6 months and 100 patients for 1 year, though Guggenheim notes this should not delay filing as a safety supplement can be submitted during the review process.

The research firm addressed concerns about tolerability and dropout rates exceeding 35% in treatment arms, suggesting that tolerability would likely improve in a commercial setting compared to the at-home study environment.

Praxis plans to file a New Drug Application by early 2026 and will discuss potential accelerated review timelines at an upcoming pre-NDA meeting, with Guggenheim estimating the essential tremor market opportunity exceeds $2 billion in the US. Investors should note that Praxis is scheduled to report its next earnings on November 5, 2025. InvestingPro subscribers have access to 10 additional exclusive tips about PRAX’s financial health and market position.

In other recent news, Praxis Precision Medicines announced positive results from two pivotal Phase 3 studies of its essential tremor treatment, ulixacaltamide HCl. Patients in the study showed a statistically significant improvement, meeting the primary endpoint and all key secondary endpoints. Piper Sandler reiterated its Overweight rating on Praxis Precision Medicines, maintaining a $270 price target. The firm highlighted the upcoming catalyst lineup, including the anticipated Essential3 ET data for ulixacaltamide. Additionally, Piper Sandler noted positive Phase 2 data for Praxis’s epilepsy treatment, vormatrigine, which showed a consistent pharmacokinetic profile. In financial developments, Praxis ended its 2024 Open Market Sale Agreement with Jefferies and initiated a new $250 million ATM equity offering program with TD Cowen. The company reported selling shares for gross proceeds of approximately $86.2 million through the previous agreement. These recent developments have positioned Praxis Precision Medicines for potential future growth.

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