Praxis Precision Medicines stock holds Buy rating at Truist on seizure reduction data

Published 05/08/2025, 18:08
Praxis Precision Medicines stock holds Buy rating at Truist on seizure reduction data

Investing.com - Truist Securities maintained its Buy rating and $85.00 price target on Praxis Precision Medicines Inc . (NASDAQ:PRAX) following positive seizure reduction data from the company’s RADIANT trial. The target represents significant upside potential, with analyst targets ranging from $33 to $270, according to InvestingPro data.

The open-label RADIANT trial demonstrated a 56.3% median seizure reduction and a 67% responder rate, defined as patients achieving at least 50% seizure reduction. Additionally, 22% of patients achieved seizure freedom despite challenging background therapy conditions, with 81% of participants on sodium channel blockers. While the company maintains a strong financial position with more cash than debt and a healthy current ratio of 6.31, InvestingPro analysis indicates rapid cash burn remains a key consideration.

The seizure reduction data came from all 37 focal onset seizure patients enrolled in the RADIANT study. For discontinued patients, seizure reduction data prior to discontinuation was used for imputation, following standard practices in epilepsy trials.

Truist Securities expects discontinuation rates to improve with more proactive management of background anti-seizure medications. The firm also anticipates better seizure reduction data from longer follow-up periods of approximately 12 weeks or more later in the third quarter.

Additional data from the trial will be presented at upcoming medical conferences, including the International Epilepsy Congress on August 31 and the American Epilepsy Society meeting in December, with POWER 1 topline results expected in the fourth quarter. Discover 10+ additional exclusive insights and real-time metrics with InvestingPro, including detailed financial health scores and valuation analysis.

In other recent news, Praxis Precision Medicines announced positive results from its Phase 2 RADIANT study evaluating vormatrigine for focal onset seizures. The study showed a 56.3% median reduction in seizure frequency, with approximately 22% of patients achieving complete seizure elimination in the last 28 days of treatment. Following these results, several analysts adjusted their outlooks on the company. H.C. Wainwright raised its price target for Praxis Precision Medicines to $115, maintaining a Buy rating. Guggenheim also increased its price target to $155, citing the drug’s impressive performance. TD Cowen upheld its Buy rating with a $61 price target, expressing optimism about the treatment’s efficacy. Meanwhile, Wedbush raised its target to $33 but retained an Underperform rating, noting challenges in data interpretation due to the study’s ongoing nature. These developments reflect a growing confidence in the potential of vormatrigine as a treatment option.

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