Praxis Precision Medicines, Inc. (PRAX)
NASDAQ:PRAX
Want to see PRAX full AI Analyst Report?
Top Page
Praxis Precision Medicines
(NASDAQ:PRAX)
Select Model
Select Model
Rating:57Neutral
Price Target:
$267.00
▼(-22.04% Downside)
Action:Reiterated
Date:06/03/26
The score is supported primarily by strong balance-sheet flexibility and positive late-stage/regulatory momentum from the latest earnings call, but is held back by substantial losses and cash burn, bearish/oversold technicals, and limited valuation support due to negative earnings.
Positive Factors
Balance sheet strength and runway
A large cash position (~$1.4B) and extremely low debt give Praxis durable financial flexibility to fund late‑stage trials, regulatory work and initial commercial build through 2028. This reduces immediate refinancing risk and supports multi‑year program execution even if timelines slip.
Negative Factors
High and variable cash burn
Sustained negative operating and free cash flow at scale raises dilution and execution risk if regulatory or launch timelines extend. While cash on hand is strong today, elevated and growing burn tied to simultaneous late‑stage programs and commercialization could force financing or spending cuts if approvals are delayed.
Read all positive and negative factors
Positive Factors
Negative Factors
Balance sheet strength and runway
A large cash position (~$1.4B) and extremely low debt give Praxis durable financial flexibility to fund late‑stage trials, regulatory work and initial commercial build through 2028. This reduces immediate refinancing risk and supports multi‑year program execution even if timelines slip.
Read all positive factors
Praxis Precision Medicines (PRAX) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$7.06B
Dividend YieldN/A
Average Volume (3M)456.26K
Price to Earnings (P/E)―
Beta (1Y)2.11
Revenue Growth-100.00%
EPS Growth-24.90%
CountryUS
Employees116
SectorHealthcare
Sector Strength45
IndustryBiotechnology
Share Statistics
EPS (TTM)-13.39
Shares Outstanding27,878,775
10 Day Avg. Volume576,131
30 Day Avg. Volume456,264
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 Cap0.97
Enterprise Value/RevenueN/A
Enterprise Value/Gross Profit-53.27
Enterprise Value/Ebitda-19.46
Forecast
1Y Price Target
$623.24Price Target Upside81.97% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering17
EPS Forecast (FY)-15.1
Revenue Forecast (FY)$4.21M
Praxis Precision Medicines Business Overview & Revenue Model
Company Description
Praxis Precision Medicines, Inc. is a biopharmaceutical firm operating at the clinical stage, dedicated to creating innovative treatments for central nervous system (CNS) conditions that stem from an imbalance in neuronal activity. The company's p...
How the Company Makes Money
null...
Praxis Precision Medicines Earnings Call Summary
Earnings Call Date:May 07, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Aug 10, 2026
Earnings Call Sentiment Positive
The call communicated strong operational and clinical momentum: two NDAs accepted with PDUFA dates, rapid completion of a key EMBOLD study, an impressive 77% placebo‑adjusted seizure reduction in EMBRAVE Part A, multiple upcoming pivotal readouts, and a strengthened balance sheet ($1.4B, +51% vs. year‑end). Management is heavily investing in commercialization and late‑stage development (Q1 operating cash use +62% YoY), which raises short‑term cash burn and execution risk. Regulatory timing, heterogeneous populations in broad DEE, and U.S. pricing dynamics are notable uncertainties but are framed as manageable. On balance, the positive clinical data, regulatory progress, and substantial cash runway outweigh the cost and execution risks.Positive Updates
NDAs Accepted for Two Key Programs with Set PDUFA Dates
The FDA accepted NDAs for ulixacaltamide (Ulixa) and relutrigine with PDUFA dates set (Ulixa: January 29 next year; relutrigine: September 27). Company is ramping commercial efforts for potential U.S. launches within the next ~8 months.
Negative Updates
Increased Operating Cash Burn Year-over-Year
Praxis used $86 million in operating cash in Q1 2026 compared to $53 million in Q1 2025 — an increase of $33 million (+62.3%), driven by greater clinical trial activity, headcount growth, and commercial launch preparations.
Read all updates
Q1-2026 Updates
Positive
Negative
NDAs Accepted for Two Key Programs with Set PDUFA Dates
The FDA accepted NDAs for ulixacaltamide (Ulixa) and relutrigine with PDUFA dates set (Ulixa: January 29 next year; relutrigine: September 27). Company is ramping commercial efforts for potential U.S. launches within the next ~8 months.
Read all positive updates
Company Guidance
Praxis gave metric-driven timing and commercial guidance: NDAs for ulixacaltamide and relutrigine are accepted (PDUFA dates Jan 29, 2027 and Sep 27, 2026, respectively) as the company prepares U.S. launches; the portfolio comprises four late‑stage assets with >$20 billion aggregate peak sales potential (ulixacaltamide >$10 billion; essential tremor prevalence ~7 million in the U.S. with ~2 million in immediate need). Key clinical milestones: EMBOLD enrollment is complete with topline expected Q4 2026 (broad DEE ~200,000 U.S. patients; ~20x expansion vs initial SCN2A/8A population), POWER1 readout is due later this quarter (Q2 2026) with company expectations of meaningful placebo‑adjusted seizure reduction (~30% cited as a meaningful benchmark), POWER2 to complete in late 2026 with a readout early 2027 and POWER3 planned to initiate; EMBRAVE Part A (n=9, randomized 3:1, 24 weeks) showed a 77% placebo‑adjusted reduction in monthly seizures. Financial and launch-readiness metrics: Q1 operating expense ≈$106M (R&D $78M; SG&A $28M), cash used in operations $86M in Q1 (vs $53M in Q1 2025), cash balance $1.4B as of 3/31/2026 (up ~$474M from $926M on 12/31/2025) expected to fund operations into 2028; commercial preparations include surveying >2,300 physicians and >1,300 patients, 15 AAN presentations, established distribution and dual drug‑substance manufacturing.Praxis Precision Medicines Financial Statement Overview
Summary
Income Statement
18
Very Negative
Balance Sheet
72
Positive
Cash Flow
34
Negative
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 0.00 | 0.00 | 8.55M | 2.45M | 0.00 | 0.00 |
| Gross Profit | -128.84M | -140.00K | -143.86M | -84.32M | -154.44M | 0.00 |
| EBITDA | -352.81M | -303.13M | -199.81M | -125.94M | -213.57M | -167.15M |
| Net Income | -326.53M | -303.27M | -182.82M | -123.28M | -214.03M | -167.06M |
Balance Sheet | ||||||
| Total Assets | 1.46B | 937.91M | 483.11M | 87.95M | 115.13M | 292.75M |
| Cash, Cash Equivalents and Short-Term Investments | 786.87M | 599.33M | 392.57M | 81.30M | 100.49M | 275.91M |
| Total Debt | 1.44M | 110.00K | 1.37M | 2.50M | 3.50M | 4.31M |
| Total Liabilities | 50.24M | 59.77M | 37.66M | 18.28M | 39.02M | 41.94M |
| Stockholders Equity | 1.41B | 878.14M | 445.45M | 69.67M | 76.11M | 250.81M |
Cash Flow | ||||||
| Free Cash Flow | -282.90M | -249.12M | -131.76M | -111.19M | -185.49M | -125.60M |
| Operating Cash Flow | -282.72M | -249.07M | -131.76M | -111.14M | -185.04M | -124.55M |
| Investing Cash Flow | -604.36M | -311.15M | -248.49M | 38.95M | 96.89M | -140.52M |
| Financing Cash Flow | 1.26B | 702.17M | 514.32M | 91.87M | 10.46M | 107.59M |
Praxis Precision Medicines Technical Analysis
Negative
342.50
Price Trends
324.53
Negative
319.18
Negative
235.73
Positive
Market Momentum
-14.09
Positive
31.17
Neutral
10.10
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For PRAX, the sentiment is Negative. The current price of 342.5 is above the 20-day moving average (MA) of 325.60, above the 50-day MA of 324.53, and above the 200-day MA of 235.73, indicating a neutral trend. The MACD of -14.09 indicates Positive momentum. The RSI at 31.17 is Neutral, neither overbought nor oversold. The STOCH value of 10.10 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for PRAX.
Praxis Precision Medicines Risk Analysis
Praxis Precision Medicines disclosed 1 risk factors in its most recent earnings report. Praxis Precision Medicines reported the most risks in the "Legal & Regulatory" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Praxis Precision Medicines Peers Comparison
UnderperformOutperform
Sector (51)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
57 Neutral | $7.06B | -22.40 | -43.02% | ― | -100.00% | -24.90% | |
57 Neutral | $1.37B | -37.77 | -9.44% | ― | 7295.60% | 58.57% | |
56 Neutral | $1.66B | -11.41 | -14.86% | ― | 242.66% | 15.53% | |
51 Neutral | $7.86B | -0.30 | -43.30% | 2.27% | 22.53% | -2.21% | |
49 Neutral | $1.11B | -2.30 | -167.71% | ― | -100.00% | -128.73% | |
48 Neutral | $351.01M | -2.24 | -43.82% | ― | ― | ― | |
47 Neutral | $892.74M | -4.51 | -153.61% | ― | 1.92% | -1130.30% |
* Healthcare Sector Average
PRAX
Praxis Precision Medicines
253.25
208.74
468.97%
SPRY
ARS Pharmaceuticals
8.99
-5.54
-38.13%
ABCL
AbCellera Biologics
5.42
2.91
115.94%
ZBIO
Zenas BioPharma, Inc.
17.61
5.69
47.73%
UPB
Upstream Bio, Inc.
6.45
-4.84
-42.87%
SEPN
Septerna, Inc.
30.41
20.30
200.79%
Praxis Precision Medicines Corporate Events
Business Operations and StrategyProduct-Related Announcements
Praxis Precision Reassesses Vormatrigine After Mixed POWER1 Data
Negative
Jun 1, 2026
On June 1, 2026, Praxis Precision Medicines, Inc. reported topline results from its Phase 2/3 POWER1 study of vormatrigine in patients with focal onset seizures, a highly refractory epilepsy population. The trial did not achieve its primary succes...
Business Operations and StrategyFinancial DisclosuresPrivate Placements and FinancingProduct-Related AnnouncementsRegulatory Filings and Compliance
Praxis Highlights FDA NDA Acceptances and Strengthened Cash Runway
Positive
May 13, 2026
On May 7, 2026, Praxis Precision Medicines reported first-quarter 2026 results and a broad clinical and regulatory update, highlighted by U.S. FDA acceptance of new drug applications for ulixacaltamide in Essential Tremor and relutrigine in SCN2A ...
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.