On Tuesday, Truist Securities maintained a Buy rating and a $150.00 stock price target for Praxis Precision Medicines Inc. (NASDAQ: PRAX), following the announcement of positive results from their Phase 2 EMBOLD study. The study evaluated relutrigine, a sodium channel inhibitor, in developmental epileptic encephalopathies (DEEs) SCN2A and SCN8A.
The results from the EMBOLD study indicated a 46% placebo-adjusted seizure reduction during the double-blind period, with over 30% of participants achieving seizure-freedom. These findings have prompted the initiation of the registration phase for EMBOLD in SCN2A and SCN8A.
The analyst from Truist Securities highlighted that the results appear highly competitive when compared to another epilepsy drug, bexicaserin, which demonstrated around a 30% placebo-adjusted motor seizure reduction in a similar patient population.
The positive outcome of the study suggests that there may be an opportunity for Praxis Precision Medicines to address other forms of developmental epileptic encephalopathies beyond SCN2A and SCN8A.
According to the analyst, these DEEs include conditions such as DUP15q, KCNQ2, KCNQ3, Angelman, Rett, PCDH19, among others, potentially impacting over 100,000 patients for whom sodium channel inhibitor treatment could be relevant.
The reiteration of the Buy rating and price target by Truist Securities reflects the firm's positive outlook on Praxis Precision Medicines' prospects following the encouraging study results. The next steps for the company will involve further clinical development as they enter the registration phase for the EMBOLD study in specific DEE patient groups.
In other recent news, Praxis Precision Medicines has reported encouraging Phase 2 results for its epilepsy drug, relutrigine, marking a significant development in the treatment of pediatric epilepsy. The drug demonstrated a 46% reduction in monthly motor seizures during the trial, with over 30% of patients achieving seizure freedom.
In the realm of financial forecasts, Praxis Precision's recent second-quarter earnings call highlighted their upcoming interim Essential3 Part1 analysis, expected in the fourth quarter of 2024, and the anticipated release of the relutrigine EMBOLD data in the third quarter of 2024.
Several analyst firms have shown interest in the company's progress. Piper Sandler maintained an Overweight rating with a price target of $270.00, while H.C. Wainwright raised its price target to $120, and Guggenheim maintained a Buy rating and increased the price target to $170.
Oppenheimer initiated coverage on Praxis Precision with an Outperform rating, citing the potential of the company's central nervous system drugs, particularly ulixacaltamide for essential tremor and PRAX-628 for focal onset seizures.
Jefferies raised its stock target for Praxis from $128 to $141, maintaining a 'Buy' rating, fueled by the potential outcomes of the EMBOLD study involving PRAX-562. These recent developments reflect the ongoing interest in Praxis Precision Medicines from a variety of analyst firms.
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