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Jefferies on Tuesday maintained its rating on Praxis Precision Medicines, Inc. (NASDAQ:PRAX) at “buy” and raised its price target from $60 to $75. The company expects a year of significant progress for Praxis.
”“Detailed results from the 15/45mg '628 cohort in Q1 2024 will mark the start of a catalyst-rich year for Praxis,” Jefferies said in a note.
Jefferies analysts expect the '628 drug to demonstrate a seizure-free/seizure-free (CS/PS) rate of more than 50% in progressive myoclonic epilepsy (PME) studies, confirming proof of concept. (PoC) and potential applicability to focal epilepsy trials. The company's outlook is based on future data releases and regulatory feedback that Praxis expects to receive later this year.
Praxis' pipeline includes several other important catalysts beyond its '628 epilepsy program. The company plans to release data on 562 for developmental and epileptic encephalopathy (DEE) in the first half of 2024. Additionally, feedback from the U.S. Food and Drug Administration (FDA) on '222 is expected, followed by a Phase 3 essential tremor (ET) evaluation of Urixa in late 2024.
The investment firm has increased the probability of success (PoS) for the '628 program based on upcoming milestones.
Investment Pro Insights
As Praxis Precision Medicines Inc. (NASDAQ:PRAX) approaches a key milestone in its pipeline, real-time data and insights from InvestingPro give you a deeper look into the company's financial health and market performance. With a market capitalization of $522.78 million, Praxis is a company with more cash than debt on its balance sheet, indicating its level of financial stability. This is especially important because the company is rapidly burning through cash, a common situation for biotech companies in the development stage.
Praxis stock price movement has been very volatile, which is not uncommon in the biotechnology industry, especially for companies like Praxis that are in the process of developing new drugs. In the past three months, the company achieved a high return of his price total return of 242.15%, and with a significant price increase in the past six months he showed a return of 170.61%. These indicators may signal increased investor confidence in the company's drug pipeline and potential market opportunities.
InvestingPro also highlights that Praxis trades at a high earnings valuation multiple and a high price-to-book multiple of 6.11 as of the trailing twelve months to Q3 2023. This may reflect market expectations for future growth, even though the company has not made a profit in the past year. It's a 12-month outlook, and analysts don't expect profitability this year. Investors interested in a more comprehensive analysis can find additional tips from his InvestingPro on Praxis at Investing.com/pro/PRAX. Additionally, he has 11 tips to help you fully understand Praxis' financial situation and market potential.Use coupon code pro news 24 Get an additional 10% discount on annual or biennial Pro and Pro+ subscriptions and gain valuable insights to help you make investment decisions.
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