Praxis Precision Medicines Stock Soars Over 200% on Promising Essential Tremor Trial Results
Table of Contents
Shares of Praxis Precision Medicines (PRACTICE) experienced a dramatic surge on Thursday, climbing more than 200% to a three-year high following the release of what analysts are calling “groundbreaking” results from a clinical trial evaluating a treatment for essential tremor. The stock closed at $176.13 in afternoon trading, breaking out of a cup-with-handle base and exceeding a profit-taking zone, according to MarketSurge.
Ulixacaltamide Shows Significant Improvement in Essential Tremor Patients
Praxis is developing ulixacaltamide, a drug designed to address essential tremor, a neurological movement disorder. In a key study, patients receiving the treatment demonstrated a 4.3-point improvement on an 11-point scale measuring their ability to perform activities of daily living after just eight weeks. This initial success prompted further investigation into the drug’s long-term effects.
A follow-up study examined the impact of discontinuing ulixacaltamide after the initial eight-week period in patients who had already experienced at least a 3-point improvement. The results revealed a significant difference: 55% of patients who continued treatment maintained their improvement, compared to only 33% in the placebo group.
Analyst Revisions Reflect Renewed Optimism
The positive data prompted a significant reassessment from industry analysts. One analyst, who previously removed ulixacaltamide from her financial model due to disappointing interim data in February, now projects peak sales of $3 billion by 2035. She has subsequently raised her price target for Praxis Precision Medicines to $250, up from $80, while maintaining a “buy” rating.
“Given that there are no approved therapies in this patient population, management believed that at the lowest end, the expected sales could be in the range of mid to high single-digit billions and a reasonable estimate would be mid-teens billions,” the analyst stated in a recent report.
The turnaround follows a February recommendation from an independent data monitoring committee to halt the initial study, citing a likely lack of efficacy. Praxis, however, altered the study’s design and continued patient recruitment, a decision that now appears to be paying off.
The analyst estimates a 65% probability of success for ulixacaltamide, reflecting the substantial potential of a novel treatment in a market with unmet medical needs.
