TPI Composites files for Chapter 11 bankruptcy, plans delisting from Nasdaq
On Tuesday, Praxis Precision Medicines Inc. (NASDAQ:PRAX) saw its price target lifted by H.C. Wainwright to $120 from the previous $105, while maintaining a Buy rating on the stock. The firm's decision comes in light of Praxis's announcement on Monday that they will conduct an interim analysis before the complete topline data readout expected in the fourth quarter of 2024.
Praxis indicated that the interim analysis, which was part of the original statistical plan and protocol for their Essential3 study, is now being pursued with greater intent. This step will potentially allow the company to resize the study and increase enrollment. The analysis is set to involve 50% to 75% of participants who have completed the 12-week treatment with ulixacaltemide.
The move to conduct an interim analysis by Praxis is seen as a strategic one, especially after a Phase 2 trial miss for a similar treatment by Jazz Pharmaceuticals (NASDAQ:JAZZ) showed promise but did not meet statistical significance. Praxis's management has assured that the alpha spend for the interim analysis will be minimal, and that the only potential drawback would be a delay in the topline readout, which might be pushed to the first half of 2025 instead of the second half of 2024.
According to H.C. Wainwright, such a delay would be considered acceptable by investors if it increases the chances of the study's success. With increased confidence in the expected trial outcomes, the firm has raised their probability of success estimate for the treatment to 55% and has also increased revenue projections for PRAX-628, leading to the higher price target for Praxis's shares.
In other recent news, Praxis Precision Medicines has seen a flurry of analyst activity and key developments in its drug trials. Guggenheim maintained a Buy rating and increased the price target to $170 following Praxis Precision's recent second-quarter updates.
The company plans to conduct an interim analysis for the Essential3 Study 1 in the fourth quarter of 2024 and disclosed a new pharmacokinetic study for PRAX-628. Praxis Precision also expects to release results from the Phase II EMBOLD study in the third quarter of 2024.
Oppenheimer initiated coverage on Praxis Precision with an Outperform rating, citing the potential of the company's central nervous system drugs, particularly ulixacaltamide for essential tremor and PRAX-628 for focal onset seizures. Piper Sandler reiterated its Overweight rating, emphasizing the company's potential in the focal epilepsy market and the upcoming data readout for PRX-562, expected in the third quarter of 2024.
Jefferies raised its stock target for Praxis from $128 to $141, maintaining a 'Buy' rating, fueled by the potential outcomes of the EMBOLD study involving PRAX-562. Baird also initiated coverage on Praxis, assigning an 'Outperform' rating and highlighting the potential of ulixacaltamide.
These recent developments reflect the ongoing interest in Praxis Precision Medicines from a variety of analyst firms.
InvestingPro Insights
Amidst the strategic developments at Praxis Precision Medicines Inc. (NASDAQ:PRAX), current InvestingPro data sheds light on the financial health and market performance of the company. Praxis holds a market capitalization of approximately $893.72 million, indicating its size within the biopharmaceutical sector. Despite a notable revenue growth of 221.38% over the last twelve months as of Q1 2024, analysts are anticipating a sales decline in the current year, which could impact future valuations.
InvestingPro Tips highlight that Praxis, while not paying dividends, has demonstrated a high return over the last year, with a year-to-date price total return of 134.47%. This performance is particularly impressive considering the company's volatile stock price movements and the absence of profitability over the last twelve months. Furthermore, Praxis's strong cash position, with liquid assets surpassing short-term obligations, provides a level of financial stability amidst the volatility.
For investors seeking a deeper analysis, there are additional InvestingPro Tips available on the platform. These insights, including whether Praxis's cash reserves outweigh its debt and further details on its gross profit margins, can provide a more comprehensive understanding of the company's financial standing and future prospects. Interested readers can find these additional tips at: https://www.investing.com/pro/PRAX.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.