Praxis Precision Medicines (PRAX) AI Stock Analysis

• Market Cap: $839.20M
• Dividend Yield: N/A
• Average Volume (3M): 319.50K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.25
• Revenue Growth: 270.02%
• EPS Growth: 32.69%
• Country: US
• Employees: 116
• Sector: Healthcare
• Sector Strength: 41
• Industry: Biotechnology
• EPS (TTM): -3.29
• Shares Outstanding: 20,368,982
• 10 Day Avg. Volume: 210,930
• 30 Day Avg. Volume: 319,499
• PEG Ratio: 0.88
• Price to Book (P/B): 1.87
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -4.79
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $111.13
• Price Target Upside: 168.62% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 9

• Rating: 50 Neutral
• Price Target: $38.00 ▼(-8.15%Downside)

The overall score is primarily influenced by the company's poor financial performance, characterized by substantial losses and negative cash flows. Although there are short-term technical strengths, the valuation remains challenging. Promising study data provides a positive outlook, but financial concerns dominate the overall assessment.

Positive Factors

Drug Efficacy

Relutrigine has demonstrated best-in-class efficacy with a 90% seizure reduction in EMBOLD.

Financial Stability

Praxis has a strong balance sheet with substantial cash reserves that would support operations into 2028.

Negative Factors

Failed Clinical Trial

The lead asset ulixacaltamide recently failed the interim analysis of the Phase 3 essential tremor program.

Valuation Impact

The IDMC recommended stopping Study 1 for futility, impacting the valuation of PRAX.

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 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 experiencing significant financial challenges, characterized by 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
8.12M	8.55M	2.45M	0.00	0.00	0.00
	Gross Profit
7.97M	8.20M	2.45M	-1.17M	-1.59M	-746.00K
	EBIT
-233.01M	-200.16M	-126.37M	-214.99M	-167.33M	-61.97M
	EBITDA
-232.87M	-200.16M	-125.94M	-212.86M	-165.47M	-61.08M
	Net Income Common Stockholders
-212.56M	-182.82M	-123.28M	-213.07M	-166.88M	-61.82M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
327.99M	392.57M	81.30M	100.49M	275.91M	296.61M
	Total Assets
478.74M	483.11M	87.95M	115.13M	292.75M	303.18M
	Total Debt
1.07M	1.37M	2.50M	4.50M	4.31M	763.00K
	Net Debt
-164.50M	-214.00M	-78.81M	-57.11M	-134.39M	-295.85M
	Total Liabilities
39.52M	37.66M	18.28M	39.02M	41.94M	15.72M
	Stockholders Equity
439.21M	445.45M	69.67M	76.11M	250.81M	287.46M
Cash Flow		Free Cash Flow
-163.85M	-131.76M	-111.19M	-185.49M	-125.60M	-52.62M
	Operating Cash Flow
-163.91M	-131.76M	-111.14M	-185.04M	-124.55M	-52.62M
	Investing Cash Flow
-208.34M	-248.49M	38.95M	96.89M	-140.52M	4.00K
	Financing Cash Flow
385.83M	514.32M	91.87M	10.46M	107.59M	304.42M

Praxis Precision Medicines Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 41.37
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• 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 41.37 is above the 20-day moving average (MA) of 38.44, above the 50-day MA of 36.30, and below the 200-day MA of 58.65, indicating a neutral trend. The MACD of 0.98 indicates Negative momentum. The RSI at 64.37 is Neutral, neither overbought nor oversold. The STOCH value of 82.58 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
XERS	60 Neutral	$744.72M	―	222.83%	―	29.88%	35.11%
GYRE	54 Neutral	$774.97M	166.39	11.62%	―	―	―
Sector *	54 Neutral	$5.28B	3.29	-45.38%	2.80%	16.77%	-0.08%
XNCR	52 Neutral	$650.50M	―	-33.48%	―	-25.88%	-29.16%
NTLA	51 Neutral	$796.56M	―	-57.92%	―	-13.37%	2.57%
PRAX	50 Neutral	$839.20M	―	-63.56%	―	270.02%	32.69%
NUVB	45 Neutral	$833.64M	―	-119.66%	―	―	-551.08%

Praxis Precision Medicines Corporate Events

Praxis Precision Medicines Shares Promising EMBOLD Study Data

On May 2, 2025, Praxis Precision Medicines updated its corporate presentation and provided significant updates on its developmental programs at an investor event. Notably, the company shared promising data from the EMBOLD study, showing sustained seizure reduction in patients with SCN2A and SCN8A DEEs treated with relutrigine. Additionally, Praxis announced the trial design for the EMERALD study, a Phase 3 clinical trial evaluating relutrigine in a broader DEE patient population. The company also plans to nominate a development candidate for its PRAX-100 program targeting SCN2A loss-of-function mutations by mid-2025. These updates reflect Praxis’s ongoing efforts to advance its pipeline and strengthen its position in the CNS disorder treatment market.