Praxis Precision Medicines (PRAX) AI Stock Analysis

• Market Cap: $9.54B
• Dividend Yield: N/A
• Average Volume (3M): 485.65K
• Price to Earnings (P/E): ―
• Beta (1Y): 2.05
• Revenue Growth: 364.98%
• EPS Growth: -25.33%
• Country: US
• Employees: 116
• Sector: Healthcare
• Sector Strength: 45
• Industry: Biotechnology
• EPS (TTM): -3.50
• Shares Outstanding: 27,850,834
• 10 Day Avg. Volume: 395,441
• 30 Day Avg. Volume: 485,647
• PEG Ratio: -0.68
• Price to Book (P/B): 7.55
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -26.63
• Enterprise Value/Market Cap: 0.73
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: -36.86
• Enterprise Value/Ebitda: -22.30
• 1Y Price Target: $612.94
• Price Target Upside: 76.36% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 16
• EPS Forecast (FY): -15.3
• Revenue Forecast (FY): $4.46M

• Rating: 67 Neutral
• Price Target: $360.00 ▲(3.58% Upside)
• Action: Reiterated Date: 02/20/26
• Date: Action: Reiterated 02/20/26

The score is supported most by strong technical momentum and a positive earnings-call setup (NDA filings, Breakthrough designation, multiple near-term catalysts, and an extended cash runway). These are tempered by weak underlying financial performance (no revenue in 2025, widening losses, and significant cash burn) and limited valuation support due to negative earnings and no dividend.

Positive Factors

Regulatory / Clinical Progress

Filing two NDAs and obtaining Breakthrough Therapy designation represent durable de‑risking of late‑stage assets. These regulatory milestones meaningfully raise the probability of commercialization, shorten time to market for key drugs, and transform Praxis from pure R&D to a near‑commercial biotech with persistent value creation drivers.

Strong Cash Runway

A pro forma cash position near $1.5B provides multi‑year funding for pivotal readouts, regulatory activities, and initial commercial builds. That balance sheet strength materially reduces near‑term financing risk and gives management flexibility to execute launches and strategic partnerships over the next 2–3 years.

Large Addressable Markets & Pipeline Depth

A portfolio spanning essential tremor, DEEs, focal epilepsy and early‑onset disorders addresses multiple large, often underserved markets. Diversified late‑stage assets and multiple near‑term catalysts reduce single‑asset binary risk and underpin a sustainable commercial opportunity set if approvals and launches succeed.

Negative Factors

High Cash Burn

Substantial negative operating cash flow and widening net losses indicate the business consumes material cash to fund R&D and operations. Even with strong cash, continued high burn necessitates disciplined spend and increases sensitivity to trial delays, launch setbacks or unexpected regulatory hurdles over the next 2–3 years.

Rising Operating Expenses

A sharp increase in operating expenses, and guidance for further step‑ups to support commercialization, will pressure cash flow and require the company to execute launches efficiently. Elevated fixed costs heighten the financial impact of any delays and reduce margin optionality during early commercial ramp.

Payer / Label & Access Uncertainty

Uncertainty around final label language, titration, Medicare Part D/IRA timing and payer access can materially slow uptake and restrict pricing power at launch. These structural reimbursement and label risks can persist for years and materially affect realized revenue versus theoretical addressable market estimates.

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

Financials reflect a development-stage biotech profile: very weak profitability and accelerating losses (2025 net loss ~ $303M; revenue fell to zero), and heavy ongoing cash burn (2025 operating cash flow ~ -$249M). Offsetting this is a strong, low-debt balance sheet with sharply higher equity/assets, reducing near-term solvency risk.

Income Statement

Profitability is weak and deteriorating: the company is consistently loss-making with EBIT and net income deeply negative across all annual periods, and losses widened meaningfully in 2025 (net loss of ~$303M vs. ~$183M in 2024). Revenue is very small and volatile, dropping to zero in 2025 after ~$8.6M in 2024, which limits operating leverage and makes margins uninformative/unstable. The main positive is that the business has been able to generate some revenue in recent years (2023–2024), but the overall trajectory shows heavy R&D/operating spend with no clear path to near-term profitability in the provided data.

Balance Sheet

Balance sheet leverage is very low, with total debt near-zero relative to equity (debt-to-equity ~0.0001 in 2025 and ~0.0031 in 2024), which reduces financial risk and provides flexibility. Equity and assets increased sharply in 2025 (equity ~$878M vs. ~$445M in 2024; assets ~$938M vs. ~$483M), suggesting improved capitalization. The key weakness is continued value erosion from losses: return on equity remains negative across all years (about -35% in 2025 and -41% in 2024), meaning shareholder capital is being consumed by ongoing operating deficits.

Cash Flow

Cash generation is weak: operating cash flow and free cash flow are consistently negative, and cash burn accelerated in 2025 (operating cash flow about -$249M vs. -$132M in 2024). While free cash flow moved modestly in the right direction year-over-year in 2025 (growth ~9%), the absolute level of burn is high. A relative positive is that free cash flow tracks closely with net income (roughly 1x in most years), indicating losses are largely reflected in cash rather than being masked by non-cash accounting—however, that also underscores that the business is consuming cash at a rate similar to reported losses.

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	0.00	8.55M	2.45M	0.00	0.00
Gross Profit	-140.00K	-143.86M	-84.32M	-154.44M	0.00
EBITDA	-303.13M	-199.81M	-125.94M	-213.57M	-167.15M
Net Income	-303.27M	-182.82M	-123.28M	-214.03M	-167.06M
Balance Sheet
Total Assets	937.91M	483.11M	87.95M	115.13M	292.75M
Cash, Cash Equivalents and Short-Term Investments	599.33M	392.57M	81.30M	100.49M	275.91M
Total Debt	110.00K	1.37M	2.50M	3.50M	4.31M
Total Liabilities	59.77M	37.66M	18.28M	39.02M	41.94M
Stockholders Equity	878.14M	445.45M	69.67M	76.11M	250.81M
Cash Flow
Free Cash Flow	-249.12M	-131.76M	-111.19M	-185.49M	-125.60M
Operating Cash Flow	-249.07M	-131.76M	-111.14M	-185.04M	-124.55M
Investing Cash Flow	-311.15M	-248.49M	38.95M	96.89M	-140.52M
Financing Cash Flow	702.17M	514.32M	91.87M	10.46M	107.59M

Praxis Precision Medicines Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 347.55
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• 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 347.55 is above the 20-day moving average (MA) of 322.82, above the 50-day MA of 302.47, and above the 200-day MA of 139.76, indicating a bullish trend. The MACD of 12.78 indicates Negative momentum. The RSI at 67.93 is Neutral, neither overbought nor oversold. The STOCH value of 84.44 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
PRAX	67 Neutral	$9.54B	-25.81	-45.83%	―	364.98%	-25.33%
SPRY	54 Neutral	$903.48M	-11.40	-45.92%	―	5459.66%	-59.70%
SEPN	54 Neutral	$1.38B	-19.86	-22.38%	―	2147.20%	-269.99%
UPB	52 Neutral	$427.99M	-3.39	-40.80%	―	―	―
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
ZBIO	51 Neutral	$1.40B	-5.75	-68.33%	―	―	-38.04%
ABCL	49 Neutral	$963.86M	-6.50	-14.47%	―	7.16%	3.95%

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.