Praxis Precision Stock Extends Rally Premarket As Wall Street Turns Hyper-Bullish After Essential Tremor Trial Win

Praxis Precision Medicines rose 5% in premarket trading on Friday as bullish calls from Wall Street that were based on strong late-stage trial results for its experimental essential tremor therapy outweighed pressure from a share offering.  

The stock surged 184% to $162.71 on Thursday and gained another 5.3% in after-hours trading.

Analysts Boost Targets Following Essential Tremor Data

Jefferies raised its price target on Praxis to $300 from $65, saying the firm expects “significant stock upside” following the Phase 3 ESSENTIAL3 program success in essential tremor, an indication it values as a $2.5 billion-plus opportunity. The brokerage estimated 70% odds of approval and expects Praxis to file for U.S. regulatory clearance in early 2026.

Guggenheim raised its target to $350 from $155, citing the “robustness” of the data and the significant unmet need in the disorder, estimating the opportunity at over $2 billion in the U.S. and assuming an 80% probability of approval.

JonesResearch made the most bullish call, hiking its price target to $441 from $83, projecting ulixacaltamide could reach blockbuster status by 2028 with potential 2032 sales of $12.2 billion, assuming U.S. approval in the first quarter of 2027.

H.C. Wainwright more than doubled its target to $232 from $115, saying the trial’s positive topline data was “a big surprise” given earlier futility concerns. The firm now sees 85% odds of approval and peak sales of $3.3 billion by 2035.

Oppenheimer raised its target to $250 from $115, calling the results a “double-win” and highlighting ulixacaltamide’s clean safety profile and clear regulatory path. TD Cowen followed suit, increasing its target to $251 from $61, while Truist and Baird raised theirs to $360 and $275, respectively.

Ulixacaltamide’s Phase 3 Success 

Praxis said patients who received ulixacaltamide in its late-stage study experienced a 4.3-point mean increase in Modified Activities of Daily Living 11 (mADL11) score, which is a measure of functional independence. The benefit was sustained across the entire 12-week treatment period, suggesting that patients derive a consistent benefit throughout the trial. 

Praxis said it expects to file for U.S. regulatory approval by early 2026. The drug was generally well-tolerated with no deaths or serious side effects reported in the study, though more patients in the ulixacaltamide arm discontinued the study drug due to mild or moderate reactions.

Essential tremor is a neurological condition that affects about seven million people in the U.S. and has limited treatment options today. Analysts believe ulixacaltamide could become one of the first major new therapies to address this gap if approved.

Capital Raise To Fund Launch Preparations

Praxis announced the pricing of a $525 million public offering late Thursday, issuing shares at $157 each and pre-funded warrants at $156.9999. The proceeds will strengthen its balance sheet ahead of regulatory filings and potential commercialization.

TD Cowen, Piper Sandler, Guggenheim Securities, and Truist Securities are acting as joint book-running managers for the offering, which is expected to close on October 20, 2025.

Stocktwits Traders Weigh Profit-Taking vs. Optimism After Rally

On Stocktwits, retail sentiment for Praxis was ‘extremely bullish’ amid ‘extremely high’ message volume.

One retail trader said that Praxis’s $157 per-share offering looked steep, saying the company was “taking advantage of the price run” but acknowledging the move made sense given Thursday’s rally.

Another user noted that with “all the analyst upgrades,” the stock might hold up for a while despite the fundraising news.

Praxis’ stock has more than doubled so far in 2025.

For updates and corrections, email newsroom[at]stocktwits[dot]com.

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