Praxis Precision Medicines 'A Diversified Player In Epilepsy Market,' Analyst Sees Over 100% Stock Upside

Chardan Research initiated coverage on Praxis Precision Medicines, Inc. PRAX on Wednesday, citing the potential of its epilepsy franchise.

Analyst Rudy Li writes, “Epilepsy remains one of our favorite markets in the CNS space, and we view Praxis as a diversified play in epilepsy, with a portfolio of products leveraging validated drug targets.”

Praxis had $472.0 million in cash, cash equivalents, and marketable securities as of March 31, which is expected to fund operations into 2028.

Also Read: Praxis Precision Medicines Touts Encouraging Data For Mid-Stage Epilepsy Drug

In March, Praxis released interim data from Study 1 of the Essential3 program of ulixacaltamide in essential tremor (ET).

The Independent Data Monitoring Committee recommended stopping the study for futility. The results are unlikely to meet the primary efficacy endpoint.

• “While we believe that the Phase 3 studies are unlikely to work (and we have not modeled for), we believe it is also possible that the FDA could provide regulatory flexibility given the unmet need for ET, which could provide additional upside to the story,” analyst Li writes.
• In its first-quarter earnings release, the company said it decided to complete the studies and will share topline results in the third quarter of 2025. After reviewing the results of both studies, Praxis will decide if there is sufficient evidence to support an NDA filing.

The analyst initiated with a Buy rating and a price forecast of $80.

Chardan is optimistic about vormatrigine’s (formerly PRAX-628) potential in treating major types of epilepsy, especially focal onset seizures and generalized epilepsy, with possible peak sales over $1 billion.

• As a next-generation sodium channel modulator, vormatrigine stands out from older drugs and current standard treatments because of its strong potency and targeted action, which could lead to better effectiveness and fewer side effects.
• Early trials showed it has a wide safety margin, and a separate study showed high response rates in patients with light-triggered seizures.

Talking about Praxis’s elsunersen, an antisense product, Chardan writes that the product could become the first disease-modifying therapy for the treatment of SCN2A Gain-of-Function (GoF) DEE, which is a rare indication (~2K patients)

Price Action: PRAX stock is up 7.31% at $37.74 at the last check Wednesday.

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