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Investing.com -- Praxis Precision Medicines (NASDAQ: PRAX) shares soared more than 200% on Thursday after the company announced positive topline results from two pivotal Phase 3 studies evaluating its experimental treatment, ulixacaltamide hydrochloride, for essential tremor (ET).
Analysts at both Guggenheim and Truist hailed the results as transformative, citing the data’s strength and commercial potential.
In a note reacting to the news, Guggenheim highlighted that both the parallel group and randomized withdrawal studies “met the pre-specified endpoints and key secondary endpoints,” adding that “the data were consistent across various statistical analyses.”
The firm raised its price target to $350 from $155, noting “blockbuster potential” for ulixacaltamide in ET and reaffirming a Buy rating.
Truist analysts also reiterated their Buy recommendation on the stock and lifted their price target to $360 from $85, calling the results “impressive across the board.”
They pointed to Study 1’s “4.3 point improvement from baseline vs 1.7 for placebo (p<0.0001)” and noted that “efficacy was seen across subdomains of mADL11.”
Truist said ulixacaltamide’s sustained benefit through 12 weeks and across pooled analyses underscored the drug’s robustness, while Study 2 “shows sustained benefit of staying on ulixa vs worsening when switched to pbo.”
Looking ahead, Guggenheim remarked that the company plans to file a New Drug Application by early next year and may seek an accelerated review, adding that the required safety database “should not be a gating factor to filing.”
With an estimated 7 million people in the U.S. affected by essential tremor and no FDA-approved treatments, Truist said the “commercial implications are immense,” and Guggenheim estimated the market opportunity could exceed $2 billion.