On Tuesday, Jefferies maintained a Buy rating on Praxis Precision Medicines Inc. (NASDAQ:PRAX) and increased the price target to $75 from $60. The firm anticipates a year filled with significant developments for Praxis.
"Detailed results from 15/45 mg '628 cohorts in 1Q24 will kick off a catalyst-rich year for Praxis," said Jefferies in a note.
The analyst at Jefferies predicts that the '628 drug will show a greater than or equal to 50% convulsive/seizure-free (CS/PS) rate in its Progressive Myoclonic Epilepsy (PME) study, which would confirm its proof of concept (PoC) and its potential applicability to focal epilepsy trials. The firm's outlook is based on the upcoming data releases and regulatory feedback that Praxis is slated to receive throughout the year.
Praxis's pipeline includes several other key catalysts beyond the '628 epilepsy program. In the first half of 2024, the company is expected to release data on '562 for Developmental and Epileptic Encephalopathies (DEE). Additionally, feedback from the U.S. Food and Drug Administration (FDA) on '222 is anticipated, followed by a Phase 3 Essential Tremor (ET) readout of Ulixa in the second half of 2024.
The investment firm has raised the probability of success (PoS) for the '628 program based on these forthcoming milestones.
InvestingPro Insights
As Praxis Precision Medicines Inc. (NASDAQ:PRAX) approaches critical milestones in its pipeline, real-time data and insights from InvestingPro provide a deeper look into the company's financial health and market performance. With a market capitalization of $522.78 million, Praxis is a company that holds more cash than debt on its balance sheet, indicating a level of financial stability. This is particularly relevant as the company is quickly burning through cash, which is a common situation for biotech firms in the development stage.
Praxis's stock price movements have been quite volatile, which is not uncommon in the biotech industry, especially for companies like Praxis that are in the process of developing new drugs. In the last three months, the company has seen a strong return with a 242.15% price total return, along with a large price uptick over the last six months, showing a 170.61% return. These metrics could suggest growing investor confidence in the company's drug pipeline and potential market opportunities.
InvestingPro also highlights that Praxis is trading at a high revenue valuation multiple and a high Price / Book multiple of 6.11 as of the last twelve months ending Q3 2023. This may reflect the market's anticipation of future growth despite the company not being profitable over the last twelve months and analysts not expecting profitability this year. Investors interested in a more comprehensive analysis can find additional InvestingPro Tips for Praxis at Investing.com/pro/PRAX. There are 11 more tips available, providing a thorough understanding of Praxis's financial position and market potential. Use coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription, and gain valuable insights that could inform investment decisions.
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