Praxis Precision Medicines (PRAX) AI Stock Analysis

• Market Cap: $4.71B
• Dividend Yield: N/A
• Average Volume (3M): 1.47M
• 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: 1,111,745
• 30 Day Avg. Volume: 1,469,316
• 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: 0.19
• Enterprise Value/Revenue: 120.34
• Enterprise Value/Gross Profit: -3.77
• Enterprise Value/Ebitda: -3.11
• 1Y Price Target: $327.08
• Price Target Upside: 73.48% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 14
• EPS Forecast (FY): -13.07
• Revenue Forecast (FY): $325.93K

• Rating: 54 Neutral
• Price Target: $195.00 ▲(3.43% Upside)

Praxis Precision Medicines' overall stock score is primarily impacted by its poor financial performance, characterized by significant net losses and negative cash flows. However, the positive technical indicators and promising clinical trial results provide some optimism. The company's strong financial position and ambitious clinical agenda, as highlighted in the earnings call, are also positive factors, though valuation concerns persist due to ongoing losses.

Positive Factors

Clinical Advancements

The RADIANT study's positive outcomes enhance Praxis' competitive position in neuropsychiatric treatments, potentially leading to successful product commercialization.

Regulatory Alignment

FDA alignment on the relutrigine program strengthens Praxis' regulatory pathway, increasing the likelihood of successful NDA submission and market entry.

Financial Stability

A robust cash runway supports long-term R&D and clinical trials, ensuring Praxis can sustain its operations and strategic initiatives without immediate financial pressure.

Negative Factors

Operational Inefficiencies

Persistent net losses and operational inefficiencies could hinder Praxis' ability to achieve profitability, affecting its long-term financial health and investment appeal.

High Discontinuation Rate

High discontinuation rates in clinical trials may impact the perceived efficacy and safety of treatments, posing challenges for regulatory approval and market acceptance.

Negative Cash Flow

Worsening negative cash flow indicates potential liquidity issues, limiting Praxis' ability to invest in growth opportunities and increasing reliance on external funding.

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. As a clinical-stage company, its current revenue model is heavily reliant on securing funding through public and private investments, including venture capital and initial public offerings (IPOs). The company may also generate revenue through partnerships and collaborations with larger pharmaceutical companies for co-development and co-commercialization of its drug candidates. Furthermore, once its products receive regulatory approval, Praxis can earn revenue through product sales, royalties, and licensing agreements. Significant partnerships with industry leaders can enhance its financial stability and provide additional resources for research and development.

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: 188.54
• 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 188.54 is above the 20-day moving average (MA) of 181.34, above the 50-day MA of 129.85, and above the 200-day MA of 65.93, indicating a bullish trend. The MACD of 12.66 indicates Positive momentum. The RSI at 58.38 is Neutral, neither overbought nor oversold. The STOCH value of 72.49 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
SEPN	59 Neutral	$1.32B	―	-22.38%	―	2147.20%	-269.99%
UPB	57 Neutral	$1.41B	―	-40.80%	―	―	―
ZBIO	57 Neutral	$2.14B	―	-68.33%	―	―	―
PRAX	54 Neutral	$4.71B	―	-75.20%	―	364.98%	-25.33%
SPRY	53 Neutral	$917.32M	―	-45.92%	―	5459.66%	-59.70%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
ABCL	44 Neutral	$1.09B	―	-16.81%	―	7.16%	3.95%

Praxis Precision Medicines Corporate Events

Praxis Precision Medicines Reports Q3 2025 Financial Results

Praxis Precision Medicines, Inc. is a clinical-stage biopharmaceutical company focused on developing therapies for central nervous system disorders through its proprietary platforms, Cerebrum™ and Solidus™. The company recently released its earnings report for the quarter ending September 30, 2025, highlighting key financial metrics and strategic developments. Praxis reported a net loss of $73.9 million for the third quarter of 2025, compared to a net loss of $51.9 million in the same period of 2024, driven by increased research and development expenses. The company’s cash and cash equivalents stood at $149.5 million, with total assets amounting to $396.4 million. Despite the losses, Praxis continues to advance its clinical-stage product candidates and has secured significant funding to support its operations. Looking ahead, Praxis remains committed to its strategic goals and aims to leverage its platforms to develop innovative therapies for neurological disorders, while maintaining a strong financial position to support its research and development activities.

Praxis Precision Medicines Advances Elsunersen Trial for Pediatric Epileptic Encephalopathy

Praxis Precision Medicines, Inc. is conducting a clinical trial titled ‘A Randomized, Multi-Center, Double-Blind, Sham-Procedure-Controlled Clinical Trial to Investigate the Efficacy and Safety of Elsunersen in Pediatric Participants With Early Onset SCN2A Developmental and Epileptic Encephalopathy.’ The study aims to evaluate the efficacy and safety of Elsunersen in treating pediatric patients with SCN2A-related epileptic encephalopathy, a severe neurological disorder.

Praxis Precision Medicines Advances Phase 3 Trial for DEE Treatment

Praxis Precision Medicines, Inc. is conducting a Phase 3 clinical trial titled A Clinical Trial for Participants With DEE to Assess Efficacy, Safety, Tolerability, and PK of Relutrigine. The study aims to evaluate the effectiveness and safety of Relutrigine in treating Developmental and Epileptic Encephalopathies (DEE), a severe neurological condition. This trial is significant as it seeks to provide a new therapeutic option for individuals affected by DEE.

Praxis Precision Medicines Advances Phase 3 Study for Essential Tremor Treatment

Praxis Precision Medicines, Inc. is conducting a Phase 3 clinical study titled ‘Essential 3,’ which aims to evaluate the safety and efficacy of ulixacaltamide in treating essential tremor. This study is significant as it seeks to determine whether ulixacaltamide can be a safe and effective treatment option for patients suffering from this condition.

Praxis Precision Medicines’ PRAX-222 Trial: A Potential Game-Changer for Pediatric Epilepsy

Praxis Precision Medicines, Inc. is conducting a clinical trial titled ‘A Seamless, Clinical Trial to Investigate the Safety and Efficacy of Multiple Doses of PRAX-222 in Pediatric Participants With Early Onset SCN2A Developmental and Epileptic Encephalopathy.’ The study aims to assess the safety and efficacy of PRAX-222 in children aged 2 to 18 years with this rare neurological condition, which could significantly impact treatment options for affected families.

Praxis Precision Medicines’ PRAX-628 Study: A Potential Game-Changer for Focal Seizures

Praxis Precision Medicines, Inc. is conducting a clinical study titled ‘A Double-Blind, Randomized, Multicenter, Trial Evaluating the Efficacy and Safety of PRAX-628 in Adults With Focal Seizures (POWER1)’. The study aims to assess the effectiveness and safety of PRAX-628 in treating adults with focal seizures, a condition characterized by localized brain activity leading to seizures. This research is significant as it could offer a new therapeutic option for patients with limited treatment choices.

Praxis Precision Medicines Advances Seizure Treatment with PRAX-628 Trial

Praxis Precision Medicines, Inc. is conducting an open-label clinical trial titled ‘An Open Label Clinical Trial to Evaluate the Efficacy and Safety of PRAX-628 in Adult Patients With Focal Onset or Primary Generalized Tonic-Clonic Seizures.’ The study aims to assess the efficacy and safety of PRAX-628, a drug intended to treat focal onset and tonic-clonic seizures in adults. This research is significant as it could lead to a new treatment option for epilepsy patients.

Praxis Precision Medicines: Evaluating PRAX-628’s Bioavailability in New Clinical Trial

Praxis Precision Medicines, Inc. (PRAX) is conducting a Phase 1 clinical trial titled ‘A Phase 1, Randomized, Open-Label, 2-Way Crossover Clinical Trial in Healthy Participants to Evaluate the Relative Bioavailability of PRAX-628 Tablet Formulation Compared to Capsule Formulation.’ The study aims to assess the bioavailability of PRAX-628 when administered as a tablet versus a capsule, which is crucial for determining the most effective delivery method for this drug.

Praxis Precision Medicines’ PRAX-562 Trial: A Potential Game-Changer for Epileptic Encephalopathies

Praxis Precision Medicines, Inc. is conducting a Phase 2 clinical trial titled ‘A Clinical Trial of PRAX-562 in Subjects With Developmental and Epileptic Encephalopathies (DEE).’ The study aims to assess the safety, tolerability, efficacy, and pharmacokinetics of PRAX-562 in pediatric patients with SCN2A and SCN8A encephalopathies, conditions characterized by early-onset seizures.

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.

Praxis Precision Medicines Signs New Sales Agreement

Praxis Precision Medicines, Inc. announced the termination of its 2024 Sales Agreement with Jefferies LLC on September 2, 2025, which previously allowed the company to sell shares of its common stock up to $250 million. This decision halts further sales under the 2024 ATM Program after raising approximately $86.2 million. Subsequently, on September 5, 2025, Praxis entered into a new sales agreement with TD Securities (USA) LLC to offer shares worth up to $250 million through an ‘at the market’ equity offering program, indicating a strategic shift in its capital-raising approach.

The most recent analyst rating on (PRAX) stock is a Buy with a $117.00 price target. To see the full list of analyst forecasts on Praxis Precision Medicines stock, see the PRAX Stock Forecast page.