Praxis Precision Medicines (PRAX) AI Stock Analysis

• Market Cap: $6.68B
• Dividend Yield: N/A
• Average Volume (3M): 972.76K
• Price to Earnings (P/E): ―
• Beta (1Y): 2.20
• 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: 25,007,172
• 10 Day Avg. Volume: 1,116,862
• 30 Day Avg. Volume: 972,765
• 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: 0.13
• Enterprise Value/Revenue: 120.34
• Enterprise Value/Gross Profit: -3.77
• Enterprise Value/Ebitda: -3.11
• 1Y Price Target: $385.80
• Price Target Upside: 43.53% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 15
• EPS Forecast (FY): -13.07
• Revenue Forecast (FY): $325.93K

• Rating: 58 Neutral
• Price Target: $282.00 ▲(4.91% Upside)

Praxis Precision Medicines' overall stock score is driven by significant financial challenges, despite strong technical momentum and positive corporate developments. The financial performance is a major concern, but recent study successes and regulatory progress provide potential for future growth.

Positive Factors

Regulatory Progress

The alignment with the FDA on the EMBRAVE3 study for elsunersen indicates strong regulatory progress, enhancing the likelihood of approval and market entry, which is crucial for long-term growth.

Pipeline Development

The successful EMBOLD study results for relutrigine show potential for significant therapeutic impact in CNS disorders, strengthening Praxis's pipeline and future revenue prospects.

Market Position

The promising RADIANT study results for vormatrigine position Praxis as a leader in epilepsy treatment, enhancing its competitive edge and market position in the CNS disorder space.

Negative Factors

Financial Challenges

Ongoing financial challenges with substantial net losses and negative cash flows may limit Praxis's ability to invest in R&D and scale operations, impacting long-term sustainability.

Declining Revenue Growth

The decline in revenue growth suggests potential issues in product commercialization or market penetration, which could hinder long-term financial performance and strategic goals.

Operational Inefficiencies

Operational inefficiencies, as indicated by negative return on equity and deteriorating free cash flow, could strain Praxis's resources and affect its ability to sustain growth and innovation.

Praxis Precision Medicines Business Overview & Revenue Model

Company Description

Praxis Precision Medicines, Inc. is a biotechnology company focused on developing novel therapies for patients with central nervous system (CNS) disorders. Established with a commitment to precision medicine, Praxis leverages its proprietary drug discovery platform to create targeted treatments aimed at addressing significant unmet medical needs in areas such as epilepsy, depression, and other neurological conditions. The company’s pipeline includes multiple drug candidates designed to modify underlying disease mechanisms rather than merely alleviating symptoms.

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: 268.80
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

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 268.8 is above the 20-day moving average (MA) of 208.30, above the 50-day MA of 169.10, and above the 200-day MA of 74.27, indicating a bullish trend. The MACD of 27.27 indicates Negative momentum. The RSI at 71.80 is Negative, neither overbought nor oversold. The STOCH value of 88.29 is Negative, 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
ZBIO	61 Neutral	$2.16B	―	-68.33%	―	―	―
SEPN	61 Neutral	$1.17B	―	-22.38%	―	2147.20%	-269.99%
PRAX	58 Neutral	$6.68B	―	-75.20%	―	364.98%	-25.33%
SPRY	57 Neutral	$1.01B	―	-45.92%	―	5459.66%	-59.70%
UPB	52 Neutral	$1.50B	-12.15	-40.80%	―	―	―
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
ABCL	47 Neutral	$1.12B	―	-16.81%	―	7.16%	3.95%

Praxis Precision Medicines Corporate Events

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.

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.

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.

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.