Praxis Precision Medicines (PRAX) AI Stock Analysis

• Market Cap: $946.01M
• Dividend Yield: N/A
• Average Volume (3M): 477.92K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.34
• Revenue Growth: 338.45%
• EPS Growth: -19.64%
• Country: US
• Employees: 116
• Sector: Healthcare
• Sector Strength: 38
• Industry: Biotechnology
• EPS (TTM): -3.31
• Shares Outstanding: 21,045,780
• 10 Day Avg. Volume: 644,758
• 30 Day Avg. Volume: 477,921
• 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: 0.64
• Enterprise Value/Revenue: 77.59
• Enterprise Value/Gross Profit: 78.06
• Enterprise Value/Ebitda: -2.22
• 1Y Price Target: $106.33
• Price Target Upside: 136.55% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 10

• Rating: 49 Neutral
• Price Target: $48.00 ▲(6.79% Upside)

Praxis Precision Medicines faces significant financial challenges, which heavily impact its overall stock score. Despite positive clinical trial results and recent FDA designations, the company's financial health remains a major concern. Technical indicators show mixed signals, and valuation metrics are unfavorable due to ongoing losses. The positive sentiment from the earnings call and corporate events provides some support, but the financial performance is the most significant factor driving the low score.

Positive Factors

Efficacy of Vormatrigine

Vormatrigine demonstrated impressive efficacy in highly refractory focal onset seizure, with significant reductions in seizures and high responder rates.

Market Potential

The analyst raised the price target for the stock to $115, reflecting increased confidence in vormatrigine's market potential and peak sales estimates.

Regulatory and Commercial Potential

By winning Breakthrough Therapy Designation, relutrigine should receive priority review, increasing its chances for approval before the expiration of the rare pediatric disease priority review voucher program.

Negative Factors

Discontinuation Rate

The discontinuation rate of 23% was higher than expected, which is pressuring Praxis shares despite impressive efficacy.

Regulatory Risks

Risks include regulatory challenges, as none of Praxis’ products is FDA-approved, and the company has never launched a product before.

Praxis Precision Medicines Business Overview & Revenue Model

Company Description

Praxis Precision Medicines (PRAX) is a biotechnology company focused on developing therapies for patients with central nervous system (CNS) disorders. The company leverages its deep understanding of genetic insights to identify novel targets and develop highly selective therapies. Praxis aims to address the unmet needs in CNS diseases by developing a robust pipeline of product candidates utilizing precision medicine approaches.

How the Company Makes Money

Praxis Precision Medicines primarily generates revenue through the development and commercialization of its pipeline of CNS disorder therapies. The company invests in research and development to advance its drug candidates through clinical trials, seeking regulatory approval to bring these therapies to market. Revenue is expected to be generated from product sales, once these therapies are approved, as well as through potential partnerships and collaborations with other pharmaceutical companies. Praxis may also receive milestone payments and royalties from licensing agreements with partners who wish to commercialize its therapies in specific markets.

Praxis Precision Medicines Financial Statement Overview

Summary

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

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	7.76M	8.55M	2.45M	0.00	0.00	0.00
Gross Profit	7.72M	8.20M	2.45M	-1.17M	-1.59M	-746.00K
EBITDA	-271.40M	-199.81M	-125.94M	-212.86M	-165.47M	-61.08M
Net Income	-251.01M	-182.82M	-123.28M	-213.07M	-166.88M	-61.82M
Balance Sheet
Total Assets	452.83M	483.11M	87.95M	115.13M	292.75M	303.18M
Cash, Cash Equivalents and Short-Term Investments	301.27M	392.57M	81.30M	100.49M	275.91M	296.61M
Total Debt	755.00K	1.37M	2.50M	4.50M	4.31M	763.00K
Total Liabilities	48.61M	37.66M	18.28M	39.02M	41.94M	15.72M
Stockholders Equity	404.22M	445.45M	69.67M	76.11M	250.81M	287.46M
Cash Flow
Free Cash Flow	-191.36M	-131.76M	-111.19M	-185.49M	-125.60M	-52.62M
Operating Cash Flow	-191.31M	-131.76M	-111.14M	-185.04M	-124.55M	-52.62M
Investing Cash Flow	5.48M	-248.49M	38.95M	96.89M	-140.52M	4.00K
Financing Cash Flow	198.10M	514.32M	91.87M	10.46M	107.59M	304.42M

Praxis Precision Medicines Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 44.95
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For PRAX, the sentiment is Negative. The current price of 44.95 is below the 20-day moving average (MA) of 53.07, below the 50-day MA of 47.98, and below the 200-day MA of 56.15, indicating a bearish trend. The MACD of -0.41 indicates Positive momentum. The RSI at 35.34 is Neutral, neither overbought nor oversold. The STOCH value of 7.19 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for PRAX.

Praxis Precision Medicines Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
XERS	63 Neutral	$1.10B	―	222.83%	―	35.62%	49.58%
NTLA	52 Neutral	$1.15B	―	-56.95%	―	14.99%	14.42%
Sector *	51 Neutral	$7.35B	-0.20	-44.86%	2.33%	28.96%	-1.05%
GYRE	51 Neutral	$638.59M	505.00	5.47%	―	―	―
PRAX	49 Neutral	$946.01M	―	-60.98%	―	338.45%	-19.64%
XNCR	49 Neutral	$499.26M	―	-29.22%	―	-2.07%	22.52%
NUVB	45 Neutral	$768.93M	―	-64.40%	―	900.35%	70.25%

Praxis Precision Medicines Corporate Events

Praxis Announces Positive Results from RADIANT Study

On August 4, 2025, Praxis Precision Medicines announced positive topline results from the RADIANT study, which evaluated vormatrigine in patients with focal onset seizures. The study showed a 56.3% median reduction in seizure frequency over eight weeks, with 22% of patients achieving complete seizure reduction in the last 28 days. Vormatrigine was well-tolerated, and additional data will be presented at upcoming conferences. The company also initiated two registrational studies for developmental and epileptic encephalopathies and received FDA Breakthrough Therapy Designation for relutrigine. Financially, Praxis reported a net loss of $71.1 million for the second quarter of 2025, with cash reserves expected to fund operations into 2028.

The most recent analyst rating on (PRAX) stock is a Buy with a $114.00 price target. To see the full list of analyst forecasts on Praxis Precision Medicines stock, see the PRAX Stock Forecast page.

Praxis Precision Medicines Gains FDA Breakthrough Designation

On July 17, 2025, Praxis Precision Medicines announced that the U.S. FDA granted breakthrough therapy designation for relutrigine, a treatment for pediatric patients with SCN2A and SCN8A developmental and epileptic encephalopathies. This designation, supported by positive Phase 2 EMBOLD study data, allows for expedited development and review, potentially enhancing the company’s market position in neurological therapies.

The most recent analyst rating on (PRAX) stock is a Buy with a $114.00 price target. To see the full list of analyst forecasts on Praxis Precision Medicines stock, see the PRAX Stock Forecast page.

Praxis Precision Medicines Holds Annual Stockholders Meeting

On June 26, 2025, Praxis Precision Medicines, Inc. held its Annual Meeting of Stockholders, where key decisions were made. Stockholders elected two Class II directors, ratified the appointment of Ernst & Young LLP as the independent accounting firm, and approved executive compensation on a non-binding basis. These outcomes reflect the company’s ongoing governance and operational strategies, potentially impacting its future direction and stakeholder relations.

The most recent analyst rating on (PRAX) stock is a Buy with a $114.00 price target. To see the full list of analyst forecasts on Praxis Precision Medicines stock, see the PRAX Stock Forecast page.