Praxis Precision Medicines (PRAX) shares soared more than 180% on Thursday to reach $162.71, reaching a three-year high, after the biotech firm reported “groundbreaking” trial results for its essential tremor drug, ulixacaltamide. The news sparked huge investor interest, making PRAX one of the top-performing biotech stocks of the day.
Elevate Your Investing Strategy:
- Take advantage of TipRanks Premium at 50% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence.
In another update, the company announced a plan to sell common stock and prefunded warrants to raise more capital. It said underwriters will have a 30-day option to buy up to 15% more shares at the same price, before fees and commissions. Praxis added that the deal is still subject to market conditions, and there is no guarantee on when or if it will be completed.
Drug Data Exceeds Expectations
The company said its Phase 3 study in essential tremor met the main goal. Patients on ulixacaltamide showed a 4.3-point improvement in daily activity scores, while those on placebo saw a decline.
In another part of the trial, 55% of patients who stayed on the drug kept their improvement, compared to 33% on placebo. The data suggest ulixacaltamide could become the first new treatment for tremor in decades, an area with few effective options today.
The results mark a major rebound for the company. Earlier this year, an independent committee had advised stopping the study after early results looked weak. However, Praxis chose to continue the trial using updated analysis methods, and that decision now seems to have paid off.
Analysts Turn More Positive
Following the update, several analysts became more upbeat on the stock. Jay Olson of Oppenheimer raised his price target on PRAX to $250 from $115, while keeping an Outperform rating. Olson said the company’s strong Phase 3 results for ulixacaltamide surprised Wall Street and sent the stock soaring more than 200% in one day. He noted that both studies met key goals and showed a clean safety profile compared with current treatments.
Olson expects Praxis to file for FDA approval in early 2026 and possibly launch the drug in 2027. He added that the new data “reestablish a clear regulatory path forward” for ulixacaltamide. Other analysts also said the results strengthen the company’s chances for FDA approval.
Is Praxis Precision Medicines Stock a Buy, Sell, or Hold?
Turning to Wall Street, the analysts’ consensus rating for Praxis Precision Medicines is Strong Buy, based on 12 Buy and a single Sell rating over the past three months. With that comes an average PRAX stock price target of $258.75, representing a potential 59.03% upside for the shares.
