Praxis Precision Medicines, Inc. (PRAX)

Price$351.81Cached quoteAs of 2026-09-05 19:35 UTC

AI: Fair-priced

Price checkThe valuation is demanding, but near-term approvals could support it if launches succeed.

At the observed market price, Praxis is worth about $10.3 billion in the stock market. Subtracting roughly $1.37 billion of cash and marketable securities leaves about $8.9 billion being paid for the drug pipeline and future commercial business. Management estimates more than $20 billion of combined peak annual sales potential, but that figure is forward-looking and none of the products is approved yet. With two major regulatory decisions approaching, the valuation looks ambitious but not clearly unreasonable, supporting a Fair-priced verdict rather than either extreme.

Big picturePraxis is still losing heavily, while its large cash reserve extends the development runway.

Praxis generated no revenue in 2025 and lost $303 million. In the first half of 2026, the net loss was about $176 million and operating cash flow, meaning cash used by day-to-day operations, was negative by about $164 million. Research spending remains high as late-stage trials and launch preparation continue. The offset is liquidity: cash and marketable securities totaled about $1.37 billion at June 30, and management expects funding into 2028. Neurology demand is not very economic-cycle sensitive, but the stock is highly sensitive to trial and regulatory outcomes.

Business strengthThe balance sheet is exceptionally strong, but repeated stock sales have diluted existing owners.

At June 30, Praxis reported about $1.39 billion of assets against only $49 million of total liabilities, with no meaningful debt in the supplied history. That gives management room to fund trials and prepare launches without near-term borrowing pressure. The cost has been dilution: shares outstanding increased from 19.4 million at the end of 2024 to 27.9 million by June 2026, roughly 44%. Financing cash inflow was about $609 million in the first quarter of 2026 alone. There are no dividends or buybacks; capital is being directed toward development.

What could change the storyApprovals and strong launches could create real revenue, while another failed trial could reset expectations sharply.

Relutrigine has a December 27, 2026 regulatory decision target and ulixacaltamide has a January 29, 2027 target. Successful approvals followed by strong adoption would convert today's pipeline value into sales and could justify a much larger business. The strongest warning is vormatrigine: its POWER1 study missed the primary goal in June, showing that even advanced programs can disappoint. A positive broad-epilepsy relutrigine readout, clean approvals, and credible launch uptake would strengthen the bull case; delays, weak uptake, or more major trial failures would weaken the valuation quickly.

AI: News

Dual FDA Reviews De-riskedBoth lead drug reviews passed important mid-cycle checks without major safety or effectiveness concerns.

On August 6, Praxis said regulators had completed mid-cycle reviews for relutrigine and ulixacaltamide without identifying major safety or effectiveness concerns to date, and no advisory committee meetings were planned. Related FDA inspections also ended without formal observations. PRAX rose about 16% in regular trading that day. The timing is consistent with investors treating the update as meaningful regulatory de-risking, though price timing alone cannot prove the announcement caused the entire move.

Vormatrigine Trial MissVormatrigine missed its main study goal, weakening confidence in a potentially large epilepsy opportunity.

On June 1, the POWER1 Phase 2/3 study in focal onset seizures failed its primary measure of reducing monthly seizure frequency. A secondary measure was met, higher-dose results improved later in treatment, and adverse-event discontinuations were below 10%, but Praxis paused POWER2 enrollment while reassessing the program. Reuters reported shares fell more than 12% in extended trading. The setback matters because vormatrigine targets a much broader epilepsy population than Praxis's rare-disease programs and had contributed substantial pipeline upside.

Relutrigine Decision DelayedRegulators extended relutrigine's review by three months, postponing a major potential approval milestone.

On June 29, the FDA moved relutrigine's target decision date from September 27 to December 27 after additional analyses were classified as a major amendment. The agency requested no new clinical studies and cited no safety or manufacturing concerns, so the extension did not amount to a rejection signal. Investing.com reported shares fell about 7% after hours. The delay matters because relutrigine is one of Praxis's two nearest potential commercial products, so any postponement extends the period before possible revenue.

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Revenue

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Free cash flow

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Financial statements

	2025	2024	2023	2022	2021	2020	2019
Revenue	$0	$8.6M	$2.4M	$0	—	—	—
Research & development	$267.1M	$152.4M	$86.8M	$155.0M	$120.3M	$45.0M	$29.6M
Operating expenses	$326.2M	$208.7M	$128.8M	$215.0M	$167.3M	$62.0M	$35.8M
Operating income	−$326.2M	−$200.2M	−$126.4M	−$215.0M	−$167.3M	−$62.0M	−$35.8M
Operating margin	—	−2,340.29%	−5,164.41%	—	—	—	—
EBITDA	−$326.1M	−$199.8M	−$125.9M	−$214.6M	−$167.2M	−$61.9M	−$35.8M
EBITDA margin	—	−2,336.10%	−5,146.75%	—	—	—	—
Net income	−$303.3M	−$182.8M	−$123.3M	−$214.0M	−$167.1M	−$61.8M	−$35.5M
Net profit margin	—	−2,137.48%	−5,037.88%	—	—	—	—
Basic EPSper basic share	-$13.48	-$10.21	-$18.69	-$69.65	-$59.07	-$117.84	-$398.80
Diluted EPSper diluted share	-$13.48	-$10.21	-$18.69	-$69.65	-$59.07	-$117.84	-$398.80

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Owners

Reported shareholders

Reference date Jun 30, 2026

12.26%of listed shares

Jupiter Topco LLC3.42M shares · Jun 30, 2026

View holders

Top 20 reported holders of PRAX
Holder	% owned
Jupiter Topco LLC	12.26%3.42M shares
FMR LLC	8.30%2.32M shares
BlackRock, Inc.	8.21%2.29M shares
PERCEPTIVE ADVISORS LLC	7.29%2.04M shares
BAKER BROS. ADVISORS LP	6.28%1.75M shares
Orbis Allan Gray Ltd	5.48%1.53M shares
VANGUARD PORTFOLIO MANAGEMENT LLC	4.78%1.34M shares
VANGUARD CAPITAL MANAGEMENT LLC	4.42%1.24M shares
STATE STREET CORP	3.68%1.03M shares
ADAGE CAPITAL PARTNERS GP, L.L.C.	3.64%1.02M shares
DEERFIELD MANAGEMENT COMPANY, L.P.	3.45%963.35K shares
Driehaus Capital Management LLC	3.44%959.05K shares
PRICE T ROWE ASSOCIATES INC /MD/	3.38%943K shares
MORGAN STANLEY	3.06%854.11K shares
GEODE CAPITAL MANAGEMENT, LLC	2.68%748.04K shares
Cormorant Asset Management, LP	2.29%640K shares
GOLDMAN SACHS GROUP INC	1.97%548.83K shares
BANK OF AMERICA CORP /DE/	1.96%546.93K shares
Invesco Ltd.	1.93%537.55K shares
Hood River Capital Management LLC	1.52%425.17K shares

Percentages use 27.92M shares of this listed class outstanding on Jun 30, 2026.

Gray completes the 100% scale. Reported positions may overlap; holders have different reporting dates.

Source: SEC Form 13F ↗Updated Sep 29, 2026 · Quarterly data

Insider buys & sells

Jul 1, 2024–Jun 30, 2026

Buys0$0.00 disclosed value

Sells (SEC code S)30$45.36M disclosed value

Transaction	Insider	Type	Shares	Price	Value	Owned after
Jun 24, 2026Form 4 · 10b5-1	DeSimone JillDirector	SellCommon Stock	837	$315.71	$264.2K	2.3K
Jun 24, 2026Form 4 · 10b5-1	DeSimone JillDirector	SellCommon Stock	1.3K	$314.90	$402.8K	3.2K
Jun 24, 2026Form 4 · 10b5-1	DeSimone JillDirector	SellCommon Stock	504	$313.66	$158.1K	4.5K
Jun 24, 2026Form 4 · 10b5-1	DeSimone JillDirector	SellCommon Stock	1.0K	$312.83	$314.1K	5.0K
Jun 24, 2026Form 4 · 10b5-1	DeSimone JillDirector	SellCommon Stock	2.9K	$311.91	$890.2K	6.0K