On Monday, Oppenheimer initiated coverage on Praxis Precision Medicines Inc. (NASDAQ: PRAX) stock with an Outperform rating and set a price target of $134.00.
The company, specializing in precision central nervous system (CNS) biotechnology, is focusing on prevalent and rare disorders through two proprietary platforms.
Praxis Precision Medicines has two main value drivers according to the firm. The first is ulixacaltamide for essential tremor (ET), and the second is PRAX-628 for focal onset seizures (FOS).
Despite the risks associated with ET therapeutics, as evidenced by the failures of competitors such as JAZZ, SAGE, and NBIX, the analyst believes that Praxis's unique trial design positions ulixacaltamide for potential success.
The firm emphasized that the second half of 2024 will be a critical period for ulixacaltamide as it approaches its Phase 3 readout. This stage is particularly noteworthy due to the drug's significant commercial potential. The analyst has highlighted the importance of this upcoming milestone in the company's timeline.
In addition to ulixacaltamide, PRAX-628 is considered almost equally important in terms of the sum-of-the-parts (SOTP) valuation. Early clinical data for PRAX-628 has been promising, suggesting potential success in Phase 2b trials for FOS. The medication could offer a differentiated safety and efficacy profile in the polypharmacy market.
Lastly, the company is also developing PRAX-562 for developmental and epileptic encephalopathies (DEEs), with Phase 2 data expected in the third quarter of 2024.
The outcome of this data could generate considerable interest in the company's portfolio. The firm's coverage note did not set any expectations for a p-value from the upcoming PRAX-562 data.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.