Praxis Precision Medicines, Inc. (PRAX) shares rallied 183.7% in the last trading session to close at $162.71. This move can be attributable to notable volume with a higher number of shares being traded than in a typical session. This compares to the stock's 30.3% gain over the past four weeks.
Praxis Precision Medicines shares surged following the announcement of positive topline results from two phase III studies from the Essential3 program of ulixacaltamide for treating essential tremor (ET). Study 1 showed a robust 4.3-point mean improvement in patients’ daily functioning at Week 8 compared with placebo, thereby meeting the primary endpoint. It also met all key secondary endpoints with statistical significance. Study 2 demonstrated that 55% of ulixacaltamide-treated patients maintained response compared to 33% on placebo, meeting the primary endpoint and confirming sustained benefit. The drug was generally well tolerated, with no drug-related serious adverse events. Given the high unmet need in ET, affecting around 7 million Americans with limited effective therapies, these results position ulixacaltamide as a potential first-in-class treatment. Praxis has submitted a pre-NDA meeting request to the FDA, signaling a path toward commercialization and driving strong investor optimism. The company aims to submit a regulatory application seeking approval of ulixacaltamide for ET in early 2026, upon agreement with the agency.
This company is expected to post quarterly loss of $3.45 per share in its upcoming report, which represents a year-over-year change of -25.5%. Revenues are expected to be $0.33 million, up 10.7% from the year-ago quarter.
Earnings and revenue growth expectations certainly give a good sense of the potential strength in a stock, but empirical research shows that trends in earnings estimate revisions are strongly correlated with near-term stock price movements.
For Praxis Precision Medicines, the consensus EPS estimate for the quarter has remained unchanged over the last 30 days. And a stock's price usually doesn't keep moving higher in the absence of any trend in earnings estimate revisions. So, make sure to keep an eye on PRAX going forward to see if this recent jump can turn into more strength down the road.
The stock currently carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>
Praxis Precision Medicines is a member of the Zacks Medical - Biomedical and Genetics industry. One other stock in the same industry, Royalty Pharma (RPRX), finished the last trading session 0.4% higher at $36.34. RPRX has returned 1.5% over the past month.
Royalty Pharma's consensus EPS estimate for the upcoming report has changed +0.8% over the past month to $1.11. Compared to the company's year-ago EPS, this represents a change of +6.7%. Royalty Pharma currently boasts a Zacks Rank of #3 (Hold).
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Praxis Precision Medicines, Inc. (PRAX): Free Stock Analysis Report Royalty Pharma PLC (RPRX): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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