Gold prices edge higher with focus on Ukraine-Russia, Jackson Hole
On Monday, Piper Sandler reiterated its Overweight rating on Praxis Precision Medicines Inc . (NASDAQ:PRAX) with a steadfast price target of $270.00. The firm’s confidence is bolstered by Praxis’s recent R&D Day revelations, which included the development plans for relutrigine and elsunersen, two potential epilepsy treatments.
The analyst from Piper Sandler provided a detailed analysis of Praxis’s epilepsy molecule, vormatrigine, specifically for focal onset seizures. The firm addressed 34 questions from investors concerning various aspects of the molecule’s development, including the anticipated Phase 2 RADIANT study results expected in mid-2025, and data from the Phase 2/3 POWER1/2 trials, with POWER1 findings projected for the second half of 2025. According to InvestingPro data, the company maintains a strong liquidity position with a current ratio of 8.44 and holds more cash than debt on its balance sheet, providing financial flexibility for these clinical developments.
Piper Sandler underscored vormatrigine’s significant efficacy and safety profile, which they believe sets it apart from existing antiseizure medications (ASMs) that have notable limitations. The firm anticipates that the RADIANT topline results will likely serve as a de-risking event for vormatrigine, validating its distinctive profile for treating focal onset seizures and generalized epilepsies.
The analyst’s commentary highlighted the potential of vormatrigine to differentiate itself in the competitive landscape of epilepsy treatments and seize a substantial market opportunity. With this positive outlook, Piper Sandler remains bullish on Praxis Precision Medicines, especially as 2025 is expected to be a pivotal year when the company’s epilepsy pipeline gains greater clarity and focus. Based on InvestingPro analysis, the stock appears undervalued despite its recent volatility. Subscribers to InvestingPro can access 10 additional key insights about PRAX, including detailed financial health metrics and growth projections.
In other recent news, Praxis Precision Medicines reported significant progress in its developmental and epileptic encephalopathies (DEE) treatments, with promising data on its candidate relutrigine showing a mean seizure reduction of approximately 90% from baseline. The company also announced new trials for its antisense oligonucleotide therapy, elsunersen, targeting SCN2A gain-of-function mutations. In terms of financial outlook, Praxis holds approximately $470 million in cash reserves, anticipated to fund operations through 2028. Analyst firms have been active, with Chardan Capital Markets initiating coverage with a Buy rating and an $80 price target, citing the potential of Praxis’s epilepsy treatments. Meanwhile, TD Cowen adjusted its price target to $61 from $114, maintaining a Buy rating despite setbacks in the essential tremor study. Truist Securities also revised its price target to $85 from $175, continuing to endorse the stock with a Buy rating. These adjustments follow recommendations to halt a Phase 3 study due to futility concerns. Additionally, Praxis has granted stock options and restricted stock units to new employees as part of its 2024 Inducement Plan, aiming to incentivize and retain talent.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.