S&P 500 cuts losses as Nvidia climbs ahead of results
On Wednesday, Jefferies reaffirmed its positive stance on Praxis Precision Medicines Inc . (NASDAQ:PRAX), maintaining a Buy rating and a price target of $305.00. The stock, currently valued at $1.54 billion market cap, has shown remarkable momentum with a 101.6% return over the past year. According to InvestingPro data, analyst targets range from $57 to $305, reflecting diverse views on the company's potential. Praxis, a biopharmaceutical company focused on the central nervous system, is approaching two significant milestones in the first half of 2025, which could potentially transform the company's trajectory according to Jefferies.
Praxis is currently preparing for the interim analysis of its ulixa Essential3 Study 1 in essential tremor (ET), which is expected to be released in the first quarter of 2025. While the company maintains a strong financial position with more cash than debt and a healthy current ratio of 10.96, investors should note that InvestingPro analysis indicates volatile stock price movements and anticipates sales decline in the current year. InvestingPro subscribers have access to 13 additional key insights about PRAX's financial health and market position. The company is also anticipating results from the open-label RADIANT trial of vormatrigine in common epilepsies shortly after, within the first half of the year. These developments are seen as pivotal events that could significantly impact the company's risk/reward profile.
The analyst at Jefferies highlighted the potential of Praxis' drug discovery engine, which has already produced several promising clinical candidates such as PRAX-080, PRAX-090, and PRAX-100. These candidates target unmet medical needs and indications with substantial commercial potential. The Essential3 Study 1 is particularly noteworthy, as the pre-screening phase alone has identified approximately 130,000 patients, representing a multi-billion-dollar opportunity.
The interim analysis of the Essential3 Study 1 is eagerly awaited, as it will provide further details on the timing for subsequent study readouts. Praxis has outlined several potential scenarios for the study's progression, including continuing to the study's end, stopping early due to efficacy, or increasing the sample size. In the case of increasing the sample size, Praxis is equipped to randomize around 15 patients per week at the lower end.
The location of the Essential3 clinical sites, exclusively in the United States, may offer an advantage in managing placebo response. Furthermore, Jefferies anticipates that Praxis will file a New Drug Application (NDA) for ulixa in ET sometime in 2025, marking another significant step forward for the company. With an overall FAIR financial health rating from InvestingPro and liquid assets exceeding short-term obligations, the company appears well-positioned to execute its clinical development plans.
In other recent news, Praxis Precision Medicines has been the subject of attention from several investment firms following developments in its neurological pipeline. Truist Securities has increased its price target for Praxis to $175, maintaining a Buy rating, after a management dinner where the potential success of the company's ESSENTIAL3 Study was discussed. Jefferies has also raised its price target for Praxis significantly to $305, maintaining a Buy rating and highlighting the company's diverse neurological pipeline.
Piper Sandler, a leading investment bank, maintained its Overweight rating on Praxis shares, with a consistent price target of $270. The firm identified Praxis Precision Medicines as one of the companies with the most direct catalysts within the next 12 months. Guggenheim reaffirmed its Buy rating and $170.00 price target for Praxis, emphasizing the potential of Praxis's ulixacaltamide for the treatment of essential tremor (ET).
These recent developments underline Praxis's ongoing progress in its pursuit of innovative treatments for neurological conditions. Praxis's drug candidate, Relutrigine, demonstrated a significant 46% reduction in motor seizures in a Phase 2 study, with over 30% of patients achieving freedom from seizures. Praxis is also planning further clinical trials, with interim Essential3 Part1 analysis expected in the first quarter of 2025, and the anticipated release of the relutrigine EMBOLD data in the first half of 2026.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.