Praxis Precision Medicines Stock Drops After Culper Research Reveals Short Position

• Culper noted that the company went ahead with a late-stage trial despite an independent monitoring committee recommending otherwise. 
• The firm alleged that Praxis’ Ulixacaltamide is an ineffective drug with tolerability issues. 
• It added that the drug will likely not get FDA approval.

Culper Research on Thursday revealed a short position in Praxis Precision Medicines (PRAX) and further alleged that the company “gamed” the data from its late-stage trial of Ulixacaltamide in essential tremor.

Culper alleged that the company gamed the readout with a last-minute “unapproved endpoint change, imputation of make-believe data, and half-baked tipping point analysis.”

Culper’s Claims

The firm noted that the drug failed in a mid-stage study and that the company still went ahead with a late-stage trial despite an independent monitoring committee recommending otherwise in February. It also noted that three other drugs with the same mechanism of action of Ulixacaltamide also failed early trials in essential tremor.

“The drug repeatedly shows no efficacy,” it alleged. It further noted that the trial had 35.6% patients who received Ulixacaltamide dropout compared to just 5.6% in patients who received placebo.

As per Culper, the FDA is unlikely to approve the drug based on the recent study results and Praxis is “doomed.”

“We recognize the unmet need for effective ET drugs, but ulixa isn't it - it's an ineffective drug with tolerability issues that $PRAX has dressed up with manipulated, make-believe, and misrepresented data. We see substantial downside as $PRAX comes to its pre-NDA meeting,” Culper said.

What Did Praxis Say?

Praxis revealed the data in question in October. The company then said that treatment with the experimental drug showed improvement in functional independence at week 8 in patients with essential tremor. The company also said that it intends to submit an application to the U.S. Food and Drug Administration for approval of Ulixacaltamide in essential tremor by early 2026.

Essential Tremor is a common movement disorder characterized by involuntary rhythmic movement in the upper limbs, with or without tremor in other body locations such as the head, vocal cords, or legs.

How Did Stocktwits Users React?

PRAX shares traded 8% lower at the time of writing. On Stocktwits, retail sentiment around PRAX stayed within the ‘bullish’ territory over the past 24 hours while message volume stayed at ‘extremely low’ levels.

PRAX stock is up by 120% this year and by 137% over the past 12 months. 

Also See: PACS Group Stock Soars Premarket On Completion Of Audit Committee Probe, Upbeat Full-Year Guidance

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