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BOSTON - Praxis Precision Medicines, Inc. (NASDAQ:PRAX), a biopharmaceutical company focused on developing treatments for CNS disorders, has granted stock options and restricted stock units to six new non-executive employees as part of an inducement plan. The equity awards, announced Monday, were made under the company’s 2024 Inducement Plan, in line with Nasdaq Listing Rule 5635(c)(4). According to InvestingPro data, the company maintains a strong liquidity position with a current ratio of 10.77, holding more cash than debt on its balance sheet.
The newly awarded stock options total 2,000 shares, with an exercise price set at $33.55 per share, equal to the closing price of Praxis’ common stock on the Nasdaq Global Select Market on the grant date. These options will vest over a four-year period, with one quarter vesting on the first anniversary of the vesting commencement date and the remainder in equal monthly installments over the subsequent three years, contingent upon the employees’ ongoing employment with the company.
In addition to the stock options, 7,288 restricted stock units were granted, which are scheduled to vest in four equal annual installments, also subject to the employees’ continued service with Praxis.
Praxis Precision Medicines operates in the clinical-stage space, leveraging genetic insights to develop therapeutic solutions for neurological disorders characterized by an imbalance in neuronal excitation and inhibition. The company employs a multimodal approach in its CNS portfolio, which includes several programs targeting movement disorders and epilepsy, with four product candidates currently in clinical trials.
This strategic move to grant equity awards to new employees is based on a press release statement from Praxis Precision Medicines and aims to incentivize and retain talent within the organization. InvestingPro analysis indicates the company appears undervalued at current levels, with analysts setting price targets ranging from $26 to $270 per share. Subscribers can access 15 additional ProTips and comprehensive financial metrics to better understand the company’s potential.
In other recent news, Praxis Precision Medicines has faced significant developments, particularly concerning its clinical trials and financial outlook. The Independent (LON:IOG) Data Monitoring Committee recommended halting the Phase 3 Essential3 study for ulixacaltamide due to concerns about efficacy, impacting the company’s evaluation of essential tremor treatments. Despite this, Praxis plans to complete the study, with final results expected in the third quarter of 2025. Analysts from TD Cowen and Truist Securities have adjusted their price targets for the company, with TD Cowen lowering it to $61 and Truist to $85, while both maintain a Buy rating, reflecting continued confidence in Praxis’s epilepsy pipeline.
Additionally, Deutsche Bank (ETR:DBKGn) initiated coverage with a Buy rating and a $111 price target, highlighting potential catalysts in the upcoming year. The company’s financial position remains robust, with $469.5 million in cash and marketable securities as of December 31, 2024, expected to fund operations into 2028. Praxis reported a net loss of $58.7 million for the fourth quarter of 2024, driven by increased research and development expenses. The company’s ongoing focus includes advancing its epilepsy treatments, with significant data releases anticipated throughout 2025. These developments underscore Praxis’s commitment to progressing its pipeline despite recent challenges.
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