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On Monday, Oppenheimer analysts assumed coverage of Praxis Precision Medicines Inc. (NASDAQ: PRAX) with an Outperform rating and a price target of $97. This follows the company’s recent announcement of its first-quarter 2025 financial results, which included operating expenses of $74.7 million and cash reserves of $472 million as of the end of the first quarter. Praxis expects this financial position to support its operations through 2028. The company maintains a strong liquidity position with a current ratio of 8.44, and according to InvestingPro data, holds more cash than debt on its balance sheet. Despite recent market volatility that has seen the stock decline by 50% over the past six months, InvestingPro analysis suggests the stock is currently undervalued.
The analysts highlighted several upcoming milestones in Praxis’s pipeline. They expressed optimism about the company’s management execution, particularly regarding the vomatrigine program. The RADIANT (FOS/GE) and POWER1 registrational Phase 2/3 topline results for treatment-resistant FOS are anticipated in mid-2025 and the second half of 2025, respectively. With a market capitalization of $817 million and significant revenue growth, InvestingPro rates the company’s overall financial health as "FAIR" with particular strength in relative value metrics. Subscribers can access 8 additional ProTips and comprehensive financial analysis.
Additionally, progress in the relutrigine program was noted, especially following its recent recognition at the R&D day. The program has been granted Rare Pediatric Disease Designation (RPDD) in SCN1A epilepsy (Dravet syndrome), as well as SCN2A and SCN8A Developmental and Epileptic Encephalopathies (DEEs), which underscores its clinical potential.
The EMERALD registrational Cohort 2 topline results are also on schedule for a readout in the first half of 2026. The analysts reaffirmed their confidence in Praxis’s strategic direction and maintained their price target and rating.
In other recent news, Praxis Precision Medicines has reported promising results in its developmental and epileptic encephalopathies (DEE) treatment programs. During a virtual investor event, the company shared data showing a 90% mean seizure reduction for patients treated with relutrigine, alongside an extension of the longest seizure-free period to 67 days. In addition, Praxis is advancing its EMBRAVE3 trial for the antisense oligonucleotide therapy elsunersen, targeting SCN2A mutations, with potential treatment starting at birth. Piper Sandler reiterated an Overweight rating on Praxis, maintaining a $270 price target due to the promising development of epilepsy treatments like vormatrigine. Chardan Capital Markets also initiated coverage with a Buy rating and an $80 price target, citing the company’s strategic focus on its epilepsy portfolio and financial stability, with $470 million in cash reserves expected to fund operations through 2028. Praxis has granted stock options and restricted stock units to new employees as part of its 2024 Inducement Plan, aiming to retain talent. This strategic move aligns with Praxis’s ongoing efforts to develop treatments for central nervous system disorders.
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