BofA Initiates Praxis Precision Medical At Buy

Praxis Precision Medicines Inc’s PRAX lead asset has demonstrated encouraging data for central nervous system diseases and has a broad pipeline that targets both prevalent and rare disorders, according to BofA Securities.

The Praxis Precision Medical Analyst: Tazeen Ahmad initiated coverage of Praxis Precision Medical with a Buy rating and a price target of $28.

The Praxis Precision Medical Thesis: The company’s lead asset has demonstrated encouraging proof of concept data for major depressive disorder (MDD), perimenopausal depression (PMD) and essential tremor (ET), Ahmad said in the initiation note.

“We have a favorable view on PRAX given its broad pipeline targeting both prevalent and rare CNS disorders, and potentially differentiated assets particularly from the safety perspective,” he added.

The analyst estimated peak worldwide risk-adjusted sales of $900 million in 2037 for ET and of $1.2 billion in 2039 for MDD.

“PRAX will report additional data in 12 patients in titrated doses of up to 120mg/day from the ph 2a trial by YE,” Ahmad said. “Early-stage assets offer potential upside to its valuation,” he added.

PRAX Price Action: Shares of Praxis Precision Medical had declined by o.11% to $18.38 at the time of publication Thursday.

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