Praxis Precision Medicines (NASDAQ:PRAX) Issues Quarterly Earnings Results, Misses Expectations By $0.50 EPS

Praxis Precision Medicines (NASDAQ:PRAX) posted its quarterly earnings data on Thursday. The company reported ($3.50) EPS for the quarter, missing analysts’ consensus estimates of ($3.00) by ($0.50), FiscalAI reports.

Here are the key takeaways from Praxis Precision Medicines’ conference call:

• Two NDAs submitted: Praxis submitted NDAs for ulixacaltamide in essential tremor and relutrigine for SCN2A/SCN8A DEEs; ulixacaltamide has FDA Breakthrough designation and relutrigine has Rare Pediatric Disease designation with the NDA already filed.
• Strong cash position — pro forma cash of approximately $1.5 billion after the January offering, which management says is expected to fund operations into 2028.
• Multiple near-term catalysts: POWER1 top-line readout for vormatrigine expected in Q2, elsunersen (EMBRAVE) top-line and EMBRAVE3 enrollment readouts in H1 with potential NDA next year, and EMERALD enrollment completion in H2 with a possible sNDA by 2027.
• Rising spend to support pipeline and launches — 2025 operating expenses were $326M (Q4 $97M) and management expects materially higher 2026 spend for commercial build-out, which increases near-term cash burn.
• Regulatory timing choices: Praxis requested priority review for relutrigine but not for ulixacaltamide, citing strategic/payer considerations (including IRA timing), which could affect ulixacaltamide’s approval timing and launch dynamics.

Praxis Precision Medicines Trading Down 0.7%

PRAX traded down $2.25 during trading on Thursday, reaching $326.68. 331,661 shares of the company were exchanged, compared to its average volume of 534,061. Praxis Precision Medicines has a 52 week low of $26.70 and a 52 week high of $335.75. The firm has a 50 day moving average of $297.98 and a 200 day moving average of $175.20. The stock has a market cap of $8.23 billion, a P/E ratio of -25.17 and a beta of 2.84.

Analyst Ratings Changes

Several equities analysts have recently commented on the stock. Citigroup reaffirmed a “conviction-buy” rating on shares of Praxis Precision Medicines in a research report on Tuesday, December 30th. TD Cowen restated a “buy” rating on shares of Praxis Precision Medicines in a research note on Thursday, January 29th. Wedbush lifted their target price on Praxis Precision Medicines from $83.00 to $95.00 and gave the stock an “underperform” rating in a research report on Monday, January 12th. Piper Sandler reiterated an “overweight” rating and issued a $1,200.00 price target (up from $450.00) on shares of Praxis Precision Medicines in a report on Wednesday, January 28th. Finally, BTIG Research restated a “buy” rating and set a $843.00 price objective (up from $507.00) on shares of Praxis Precision Medicines in a research note on Monday, December 29th. Three investment analysts have rated the stock with a Strong Buy rating, twelve have assigned a Buy rating, one has assigned a Hold rating and two have assigned a Sell rating to the stock. Based on data from MarketBeat.com, the stock presently has an average rating of “Moderate Buy” and an average target price of $536.06.

Institutional Trading of Praxis Precision Medicines

A number of large investors have recently modified their holdings of the company. Orbis Allan Gray Ltd bought a new stake in Praxis Precision Medicines in the 4th quarter valued at about $369,946,000. RA Capital Management L.P. acquired a new stake in shares of Praxis Precision Medicines in the fourth quarter valued at approximately $110,170,000. Woodline Partners LP raised its holdings in shares of Praxis Precision Medicines by 808.9% during the third quarter. Woodline Partners LP now owns 417,669 shares of the company’s stock valued at $22,136,000 after buying an additional 371,717 shares during the last quarter. Logos Global Management LP raised its holdings in shares of Praxis Precision Medicines by 200.0% during the fourth quarter. Logos Global Management LP now owns 375,000 shares of the company’s stock valued at $110,528,000 after buying an additional 250,000 shares during the last quarter. Finally, Morgan Stanley boosted its position in shares of Praxis Precision Medicines by 38.3% during the fourth quarter. Morgan Stanley now owns 889,889 shares of the company’s stock worth $262,286,000 after buying an additional 246,394 shares during the period. Institutional investors and hedge funds own 67.84% of the company’s stock.

Praxis Precision Medicines Company Profile

Praxis Precision Medicines is a clinical-stage biopharmaceutical company focused on discovering and developing precision therapies for disorders driven by neuronal excitability. The company applies translational neuroscience and genetic insights to design small molecule drugs that target specific ion channels and receptor subtypes implicated in neurological and psychiatric conditions. Its research aims to address unmet needs in rare epilepsies, essential tremor, treatment-resistant depression and other central nervous system (CNS) disorders.

The company’s pipeline includes several lead candidates at various stages of development.