Biotech Rebound: Praxis Precision Medicines Delivers Stunning Clinical Turnaround -( $PRAX $IBB $XBI )

By John F. Heerdink, Jr.

Praxis Precision Medicines’ (PRAX) stock erupted Thursday up greater than 200% currently after the company reported decisive Phase 3 results for its essential tremor drug, sending shares to an all-time high and erasing months of skepticism.

Breakthrough Data Revives a Struggling Program

Boston-based Praxis announced that its experimental therapy, ulixacaltamide, met the primary and secondary endpoints in two late-stage trials for essential tremor, a nervous system disorder marked by uncontrollable shaking in the hands and arms. The studies showed a statistically significant improvement in daily functioning and tremor severity after just eight weeks of treatment.

The results mark a striking turnaround for the program, which faced doubts earlier this year following an interim analysis that failed to meet expectations. Needham’s Ami Fadia called the new data “revolutionary,” noting that investors had largely written off ulixacaltamide after February’s setback.

Praxis plans to file for FDA approval of the therapy by early 2026, potentially positioning ulixacaltamide as the first new treatment option for essential tremor in decades. The company said it sees the data as validation of its precision neurology platform, which targets imbalances in neuronal excitation and inhibition.

‘Surprise!’ …Wall Street Turns Bullish

Analyst sentiment flipped sharply following the release. Piper Sandler reaffirmed its Overweight rating and lifted its price target to $270, citing both the strong efficacy signal in essential tremor and encouraging Phase 2 data from the company’s epilepsy candidate, vormatrigine.

Other investment bank analysts, including HC Wainwright and Jefferies, maintained Buy ratings, underscoring renewed confidence after the Phase 3 win. The approval path will likely hinge upon how regulators view the duration of ulixacaltamide’s benefits and its side effect profile compared to existing beta-blockers and anticonvulsants.

Market Reaction: A 200% Rally

Investors wasted no time digesting the implications. Praxis shares (NASDAQ: PRAX) soared more than 200% on Thursday, hitting an intraday high of about $188 before settling around $173 at midday—its best level in company history. The move marks a stunning reversal for a stock that had languished near $50 earlier in the week.

Trading volume has exceeded 11 million shares, roughly 40 times its daily average, as speculative enthusiasm poured in. Year-to-date, PRAX is now up over 130%, compared with a 25% decline prior to the announcement, according to TipRanks and Investing.com data.

The company’s market capitalization jumped from roughly $1.2 billion to more than $4 billion in one session, highlighting renewed investor belief in the drug’s commercial potential.

Outlook

While Thursday’s surge repositions Praxis (PRAX) among the year’s top biotech performers, analysts caution the rally places high expectations on management’s execution. The company plans to present full data from both trials later this year and remains on track to submit a New Drug Application in early 2026.

The Sum…

For now, investors view ulixacaltamide as a breakthrough moment for Praxis—and a rare example of a midcap biotech restoring faith after clinical failure. Whether the momentum endures will depend on the FDA’s view of these results and the company’s ability to deliver on its broader neurology pipeline.