Praxis Precision Medicines (PRAX) AI Stock Analysis

• Market Cap: $7.91B
• Dividend Yield: N/A
• Average Volume (3M): 746.74K
• Price to Earnings (P/E): ―
• Beta (1Y): 2.26
• Revenue Growth: 364.98%
• EPS Growth: -25.33%
• Country: US
• Employees: 116
• Sector: Healthcare
• Sector Strength: 45
• Industry: Biotechnology
• EPS (TTM): -3.36
• Shares Outstanding: 27,407,091
• 10 Day Avg. Volume: 608,882
• 30 Day Avg. Volume: 746,741
• PEG Ratio: 0.17
• Price to Book (P/B): 3.09
• Price to Sales (P/S): 161.13
• P/FCF Ratio: -10.46
• Enterprise Value/Market Cap: 0.11
• Enterprise Value/Revenue: 120.34
• Enterprise Value/Gross Profit: -3.77
• Enterprise Value/Ebitda: -3.11
• 1Y Price Target: $456.71
• Price Target Upside: 65.63% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 15
• EPS Forecast (FY): -12.76
• Revenue Forecast (FY): $35.38M

• Rating: 60 Neutral
• Price Target: $287.00 ▲(4.08% Upside)

The score balances very weak current fundamentals (large losses and cash burn) against strong technical uptrend and multiple positive, value-relevant corporate catalysts (Breakthrough designation, positive Phase 3/regulatory progress) plus a large financing that improves runway. Valuation is hard to anchor given negative earnings and no dividend data.

Positive Factors

Regulatory Acceleration (Breakthrough Designation)

Breakthrough designation accelerates development and regulatory review, increasing approval likelihood and shortening time-to-market for ulixacaltamide. This durable regulatory advantage can lower development risk, attract partners and payers, and strengthen Praxis’s competitive position in neurology.

Material Capital Raise / Runway Extension

A ~ $621M underwritten equity raise materially extends funding visibility into 2028, enabling commercialization preparation, multiple late-stage activities, and continued R&D. This reduces near-term refinancing risk and provides durable optionality to execute NDA filings and launch planning.

Positive Late‑Stage Clinical Data

Robust Phase 3 efficacy and tolerability data provide durable clinical proof‑of‑concept for the lead program, de‑risking regulatory filings and commercial potential. Successful pivotal outcomes improve likelihood of sustained market uptake if approved and support long‑term revenue prospects.

Negative Factors

High Cash Burn and Large Losses

Very large negative cash flow and net losses relative to current scale mean ongoing dependence on external capital. Sustained high burn increases execution risk if approvals or launches slip, raising chance of future dilutive financings and constraining long‑term investment flexibility.

Low and Declining Revenue Base

Modest and slightly declining revenue shows commercialization has not yet scaled, limiting internal funding for operations. Until product revenues become meaningful, the business remains binary on pipeline success and vulnerable to clinical or regulatory delays affecting long‑term sustainability.

Erosion of Equity / Negative Returns

Equity has decreased materially and returns are negative, indicating the company is consuming capital rather than compounding it. Continued losses erode the balance sheet, increasing reliance on equity raises that dilute ownership and can limit strategic options over the medium term.

Praxis Precision Medicines Business Overview & Revenue Model

Company Description

Praxis Precision Medicines, Inc., a clinical-stage biopharmaceutical company, develops therapies for central nervous system disorders characterized by neuronal imbalance. Its lead product candidates include PRAX-114, an extrasynaptic-preferring GABAA receptor positive allosteric modulator that is in Phase IIa clinical trial for the treatment of major depressive disorder and perimenopausal depression; and PRAX-944, a selective small molecule inhibitor of T-type calcium channels, which is in Phase IIa clinical trial for the treatment of essential tremor. The company is also developing PRAX-562, a persistent sodium current blocker that is in Phase I clinical trial to treat severe pediatric epilepsy and adult cephalgia; PRAX-222, an antisense oligonucleotide (ASO) for patients with gain-of-function (GOF) SCN2A epilepsy; and KCNT1 program for the treatment of KCNT1 GOF epilepsy. It has a cooperation and license agreement with RogCon Inc.; a license agreement with Purdue Neuroscience Company; a research collaboration, option, and license agreement with Ionis Pharmaceuticals, Inc.; and collaboration with The Florey Institute to develop three novel ASOs. The company was incorporated in 2015 and is based in Boston, Massachusetts.

How the Company Makes Money

Praxis Precision Medicines generates revenue primarily through the development and commercialization of its pharmaceutical products. The company aims to monetize its therapies by advancing its drug candidates through clinical trials and subsequently obtaining regulatory approvals for marketing. Revenue streams may include milestone payments from partnerships with larger pharmaceutical companies, royalties on sales of approved products, and potential licensing agreements. Additionally, Praxis may receive funding from grants or government programs aimed at supporting research in CNS disorders, further contributing to its financial resources.

Praxis Precision Medicines Financial Statement Overview

Summary

Praxis Precision Medicines is facing significant financial challenges, with substantial net losses and negative cash flows. Despite a strong gross profit margin and low debt levels, the company's operational inefficiencies and declining revenue growth are major concerns. The balance sheet remains stable, but the negative return on equity and worsening free cash flow highlight the need for a strategic reevaluation to improve financial health.

Income Statement

Praxis Precision Medicines shows a declining financial performance. The gross profit margin is relatively high at 98.1% for TTM (Trailing-Twelve-Months), but the company is suffering from significant net losses with a net profit margin of -2617.6%. Revenue has decreased by 5% in the TTM period compared to the previous annual report. Both EBIT and EBITDA margins are deeply negative, reflecting ongoing operational challenges.

Balance Sheet

The balance sheet reveals a relatively stable financial position with a debt-to-equity ratio of 0.0024, indicating low leverage. However, the return on equity is significantly negative at -48.4% due to ongoing losses. The equity ratio stands at 91.8%, suggesting strong equity financing but persistent operational losses are a concern.

Cash Flow

Cash flow analysis highlights ongoing financial challenges. The free cash flow is negative and has worsened by 24.5% compared to the previous year. Operating cash flow to net income ratio is 0.77, indicating cash flow issues. The free cash flow to net income ratio is 0.77, reflecting insufficient cash flow to cover losses.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	7.46M	8.55M	2.45M	0.00	0.00	0.00
Gross Profit	-238.43M	-143.86M	-84.32M	-154.44M	0.00	0.00
EBITDA	-288.53M	-199.81M	-125.94M	-213.57M	-167.15M	-61.92M
Net Income	-273.04M	-182.82M	-123.28M	-214.03M	-167.06M	-61.82M
Balance Sheet
Total Assets	396.39M	483.11M	87.95M	115.13M	292.75M	303.18M
Cash, Cash Equivalents and Short-Term Investments	267.16M	392.57M	81.30M	100.49M	275.91M	296.61M
Total Debt	436.00K	1.37M	2.50M	3.50M	4.31M	763.00K
Total Liabilities	52.88M	37.66M	18.28M	39.02M	41.94M	15.72M
Stockholders Equity	343.50M	445.45M	69.67M	76.11M	250.81M	287.46M
Cash Flow
Free Cash Flow	-228.36M	-131.76M	-111.19M	-185.49M	-125.60M	-52.62M
Operating Cash Flow	-228.24M	-131.76M	-111.14M	-185.04M	-124.55M	-52.62M
Investing Cash Flow	6.33M	-248.49M	38.95M	96.89M	-140.52M	0.00
Financing Cash Flow	202.80M	514.32M	91.87M	10.46M	107.59M	304.42M

Praxis Precision Medicines Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 275.74
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For PRAX, the sentiment is Positive. The current price of 275.74 is below the 20-day moving average (MA) of 281.17, above the 50-day MA of 231.20, and above the 200-day MA of 98.64, indicating a neutral trend. The MACD of 15.28 indicates Positive momentum. The RSI at 56.75 is Neutral, neither overbought nor oversold. The STOCH value of 33.12 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for PRAX.

Praxis Precision Medicines Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
PRAX	60 Neutral	$7.91B	―	-75.20%	―	364.98%	-25.33%
SPRY	54 Neutral	$1.29B	-14.04	-45.92%	―	5459.66%	-59.70%
SEPN	54 Neutral	$1.13B	-16.47	-22.38%	―	2147.20%	-269.99%
UPB	52 Neutral	$1.61B	-13.86	-40.80%	―	―	―
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
ABCL	49 Neutral	$1.31B	-7.84	-16.81%	―	7.16%	3.95%
ZBIO	47 Neutral	$863.16M	―	-68.33%	―	―	-38.04%

Praxis Precision Medicines Corporate Events

Praxis Precision Medicines Announces Major Underwritten Equity Offering

On January 6, 2026, Praxis Precision Medicines entered into an underwriting agreement with a syndicate of banks for an underwritten public offering of 2,212,000 shares of common stock at $260 per share, with closing expected on January 8, 2026, and the underwriters fully exercising their option on January 7, 2026, to purchase an additional 331,800 shares. The company expects to raise approximately $621.2 million in net proceeds, which it plans to use, together with existing cash, equivalents and marketable securities, to fund commercialization preparation for late-stage candidates, continue clinical and early-stage R&D, and cover working capital and general corporate needs, and believes this capital should support its operating and capital expenditure requirements into 2028, potentially strengthening its financial position and funding visibility for stakeholders.

The most recent analyst rating on (PRAX) stock is a Buy with a $843.00 price target. To see the full list of analyst forecasts on Praxis Precision Medicines stock, see the PRAX Stock Forecast page.

Praxis Wins FDA Breakthrough Status for Ulixacaltamide

On December 29, 2025, Praxis Precision Medicines, Inc. reported that the U.S. Food and Drug Administration granted Breakthrough Therapy Designation to its investigational drug ulixacaltamide for the treatment of patients with essential tremor, a serious movement disorder. The designation, which is intended to speed development and regulatory review of promising therapies, was awarded on the strength of positive topline results from the company’s Essential3 program, comprising two pivotal Phase 3 studies, and marks a significant regulatory milestone that could accelerate ulixacaltamide’s path to market and potentially enhance Praxis’s competitive position in the neurology space.

The most recent analyst rating on (PRAX) stock is a Buy with a $843.00 price target. To see the full list of analyst forecasts on Praxis Precision Medicines stock, see the PRAX Stock Forecast page.

Praxis Precision Medicines Plans New Drug Application

On December 9, 2025, Praxis Precision Medicines announced the completion of a Type C meeting with the FDA, resulting in the conversion of the EMBRAVE3 study of elsunersen into a single-arm study for early-onset SCN2A developmental and epileptic encephalopathy. This change involves enrolling 30 patients, all of whom will receive elsunersen, with the primary analysis focusing on motor seizure changes. Additionally, on December 11, 2025, the company confirmed plans to file a New Drug Application for relutrigine in early 2026, following discussions with the FDA.

The most recent analyst rating on (PRAX) stock is a Buy with a $420.00 price target. To see the full list of analyst forecasts on Praxis Precision Medicines stock, see the PRAX Stock Forecast page.

Praxis Precision Medicines Shares RADIANT Study Results

On December 4, 2025, Praxis Precision Medicines announced the successful completion of its pre-New Drug Application meeting with the FDA for ulixacaltamide, aligning on the NDA content and planning to submit in early 2026. The company also reported positive results from the EMBOLD study for relutrigine, showing significant seizure reduction and functional improvements, with plans to discuss next steps with the FDA. Additionally, on December 6, 2025, Praxis shared results from the RADIANT study on vormatrigine, showing substantial seizure reduction in patients with focal onset seizures and generalized epilepsy, with ongoing studies set to continue into 2026.

The most recent analyst rating on (PRAX) stock is a Buy with a $507.00 price target. To see the full list of analyst forecasts on Praxis Precision Medicines stock, see the PRAX Stock Forecast page.

Praxis Precision Medicines Updates Corporate Presentation

On October 21, 2025, Praxis Precision Medicines updated its corporate presentation for investors and analysts, highlighting its recent progress and future plans. The company announced that the FDA granted a Type B meeting for its drug candidate ulixacaltamide, following the review of the Essential3 topline results, indicating a significant step forward in its regulatory process for treating essential tremor.

The most recent analyst rating on (PRAX) stock is a Hold with a $181.00 price target. To see the full list of analyst forecasts on Praxis Precision Medicines stock, see the PRAX Stock Forecast page.

Praxis Precision Medicines Announces Positive Phase 3 Results

On October 16, 2025, Praxis Precision Medicines announced positive topline results from its Phase 3 Essential3 program for ulixacaltamide, aimed at treating essential tremor. The studies demonstrated statistically significant improvements in patients’ conditions, with ulixacaltamide showing a 4.3-point mean improvement in mADL11 scores compared to placebo. The drug was generally well tolerated, with no drug-related serious adverse events reported. These results position Praxis favorably within the neurological treatment market and potentially offer a new therapeutic option for essential tremor, pending regulatory approval.

The most recent analyst rating on (PRAX) stock is a Buy with a $270.00 price target. To see the full list of analyst forecasts on Praxis Precision Medicines stock, see the PRAX Stock Forecast page.