Praxis Precision Medicines (PRAX)
NASDAQ:PRAX
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Praxis Precision Medicines
(NASDAQ:PRAX)
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Rating:60Neutral
Price Target:
$333.00
▼(-2.77% Downside)
Action:ReiteratedDate:04/15/26
PRAX scores as a balanced risk/reward setup: strong recent regulatory/clinical momentum and a strengthened cash runway support the outlook, but this is tempered by very weak current financial performance (widening losses, high cash burn, and 2025 revenue dropping to zero). Technical signals are neutral-to-modestly positive, while valuation is constrained by ongoing losses and no dividend.
Positive Factors
Strong cash runway
A pro forma cash balance near $1.5B materially reduces near-term refinancing risk and funds late‑stage development, regulatory submissions and initial commercial investments. This durable runway supports execution of launch plans and multiple program readouts through at least 2028 without immediate dilution.
Negative Factors
Accelerating cash burn
Operating cash flow deterioration signals higher ongoing cash consumption driven by stepped‑up R&D and commercialization spend. Even with strong runway, sustained negative cash flow increases the risk of future dilution, constrains financial flexibility for additional programs, and raises sensitivity to execution delays.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong cash runway
A pro forma cash balance near $1.5B materially reduces near-term refinancing risk and funds late‑stage development, regulatory submissions and initial commercial investments. This durable runway supports execution of launch plans and multiple program readouts through at least 2028 without immediate dilution.
Read all positive factors
Praxis Precision Medicines (PRAX) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$9.03B
Dividend YieldN/A
Average Volume (3M)413.30K
Price to Earnings (P/E)―
Beta (1Y)1.90
Revenue Growth-100.00%
EPS Growth-31.18%
CountryUS
Employees116
SectorHealthcare
Sector Strength45
IndustryBiotechnology
Share Statistics
EPS (TTM)-13.48
Shares Outstanding27,850,834
10 Day Avg. Volume388,230
30 Day Avg. Volume413,303
Financial Highlights & Ratios
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 Cap0.75
Enterprise Value/RevenueN/A
Enterprise Value/Gross Profit-35.75
Enterprise Value/Ebitda-21.63
Forecast
1Y Price Target
$625.31Price Target Upside82.57% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering16
EPS Forecast (FY)-14.99
Revenue Forecast (FY)$6.38M
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 GA...
How the Company Makes Money
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Praxis Precision Medicines Earnings Call Summary
Earnings Call Date:Feb 19, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:May 07, 2026
Earnings Call Sentiment Positive
The call emphasized major clinical and regulatory progress (two NDAs filed, positive Phase III results, Breakthrough Therapy designation, multiple near-term readouts) and a strengthened balance sheet (pro forma ~$1.5B) enabling commercialization. Offsetting this are materially higher operating expenses (full-year OpEx +56% y/y), an anticipated further increase in 2026 to support launches, and commercial/payer timing uncertainties (including IRA considerations and label/titration questions). Overall, the highlights — substantial clinical validation, regulatory progress, clear launch planning, and strong cash runway — outweigh the lowlights related to cost increases and access timing risk.Positive Updates
Two NDA Submissions
Praxis submitted two NDAs in early 2026: ulixacaltamide for essential tremor and relutrigine for SCN2A and SCN8A developmental and epileptic encephalopathies (DEEs). Both submissions follow positive clinical readouts and productive FDA interactions.
Negative Updates
Elevated Operating Expenses
Q4 2025 operating expenses totaled $97.0 million vs $71.4 million in Q4 2024 (+$25.6M, ~+35.8%). R&D in Q4 increased to $77.5M from $56.3M (+$21.2M, ~+37.7%) and G&A to $19.5M from $15.1M (+$4.4M, ~+29.1%). Full-year operating expenses were $326M in 2025 vs $209M in 2024 (+$117M, ~+56.1%).
Read all updates
Q4-2025 Updates
Positive
Negative
Two NDA Submissions
Praxis submitted two NDAs in early 2026: ulixacaltamide for essential tremor and relutrigine for SCN2A and SCN8A developmental and epileptic encephalopathies (DEEs). Both submissions follow positive clinical readouts and productive FDA interactions.
Read all positive updates
Company Guidance
Praxis provided detailed near‑term regulatory, clinical and financial guidance: the company has submitted two NDAs (ulixacaltamide for essential tremor and relutrigine for SCN2A/SCN8A DEEs), expects POWER1 topline results for vormatrigine and EMBRAVE (elsunersen) data next quarter, aims to complete POWER2 enrollment in H2 2026 and EMERALD enrollment this year (targeting an sNDA from EMERALD by 2027), and converted EMBRAVE3 to a single‑arm baseline‑controlled design of ~30 patients with potential NDA next year (with topline data from the original nine‑patient EMBRAVE Part A due in H1). They reiterated key population and peak‑revenue assumptions: >7M people in the U.S. with ET (≈2M addressable) and >$10B peak for ulixacaltamide; ~10k initial U.S. SCN2A/SCN8A patients and >200k broader DEE patients with up to $5B potential for relutrigine; ~3M U.S. common epilepsy patients and >$4B potential for vormatrigine; and >$1B potential for elsunersen — cumulatively >$20B opportunity. Financially, Q4 2025 operating expenses were $97M (R&D $77.5M; G&A $19.5M), full‑year op ex $326M vs $209M in 2024, cash was $926M at year‑end (vs $469M a year earlier) plus $621M raised in January for pro forma cash ≈$1.5B expected to fund operations into 2028, and 2026 spend is expected to rise materially to support commercial launches, prelaunch hires, inventory build and a medical‑education campaign (15 presentations planned at AAN in April).Praxis Precision Medicines Financial Statement Overview
Summary
Income Statement
18
Very Negative
Balance Sheet
64
Positive
Cash Flow
26
Negative
| 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
Positive
342.50
Price Trends
316.65
Positive
293.36
Positive
188.58
Positive
Market Momentum
6.80
Negative
59.60
Neutral
64.55
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 342.5 is above the 20-day moving average (MA) of 312.84, above the 50-day MA of 316.65, and above the 200-day MA of 188.58, indicating a bullish trend. The MACD of 6.80 indicates Negative momentum. The RSI at 59.60 is Neutral, neither overbought nor oversold. The STOCH value of 64.55 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
UnderperformOutperform
Sector (51)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
60 Neutral | $9.03B | -21.87 | -58.74% | ― | -100.00% | -31.18% | |
54 Neutral | $1.06B | -25.24 | -12.63% | ― | 4174.51% | 38.11% | |
51 Neutral | $7.86B | -0.30 | -43.30% | 2.27% | 22.53% | -2.21% | |
51 Neutral | $1.34B | -28.55 | -14.16% | ― | 160.55% | 11.33% | |
50 Neutral | $1.11B | -1.76 | -156.98% | ― | 100.00% | -116.54% | |
50 Neutral | $511.55M | -10.19 | -36.48% | ― | ― | ― | |
47 Neutral | $849.98M | -6.70 | -100.29% | ― | -5.46% | -2365.06% |
* Healthcare Sector Average
PRAX
Praxis Precision Medicines
337.61
298.65
766.56%
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Praxis Precision Medicines Corporate Events
Product-Related AnnouncementsRegulatory Filings and Compliance
Praxis Precision NDA for Ulixacaltamide in Essential Tremor
Positive
Apr 14, 2026
On April 14, 2026, Praxis Precision Medicines, Inc. announced that the U.S. Food and Drug Administration accepted for review its New Drug Application for ulixacaltamide HCl to treat essential tremor in adults. The FDA set a Prescription Drug User ...
Business Operations and StrategyProduct-Related AnnouncementsRegulatory Filings and Compliance
Praxis reports positive elsunersen trial in pediatric epilepsies
Positive
Apr 6, 2026
Praxis Precision Medicines reported positive topline results from its EMBRAVE Part A Phase 1/2 trial of elsunersen in pediatric patients aged 2 to 12 years with early-onset SCN2A developmental and epileptic encephalopathy, a rare and severe seizur...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.