Wolfe Research opened coverage of Praxis Precision Medicines Inc. (NASDAQ: PRAX) with an outperform rating and set a price target of $500.00. The firm noted that 2026 could be a turning point for the company as it works to establish franchises in essential tremor and epilepsy.
Praxis shares were trading at $347.50 at the time of Wolfe Research's initiation, close to a 52-week high of $349.32. The stock has risen sharply over recent periods, gaining 413% over the last year and surging 602% in the past six months.
Wolfe Research's optimism centers on Praxis's clinical and regulatory progress. The company filed two new drug applications in February and could have both products approved in 2026, according to the firm. The lead asset, ulixacaltamide, produced positive results in the Phase 3 Essential3 studies for essential tremor and has received breakthrough therapy designation. Wolfe Research projects that ulixacaltamide could generate more than $3 billion in sales if it remains the only available therapy in the essential tremor market for years.
Praxis also submitted a new drug application for relutrigine, targeting SCN2A/SCN8A developmental and epileptic encephalopathy, a rare form of epilepsy. In addition, the company has multiple data readouts on its calendar for 2026.
Another program, vormatrigine, is expected to report its first Phase 3 data in the first half of 2026 for focal onset seizures. Wolfe Research stated that vormatrigine has a favorable probability of working in focal onset seizures and has the potential to reach blockbuster status in that market.
On the financial side, Praxis reported fourth-quarter earnings per share of -3.5, missing analysts' expectations of -3.09. Despite the earnings shortfall, market interest has remained, driven by the company's cash position and an advancing product pipeline that includes two NDAs and a breakthrough therapy designation.
In a separate analyst action, Truist Securities reiterated its Buy rating on Praxis and maintained a $500.00 price target. Truist discussed pricing assumptions for ulixacaltamide in essential tremor, projecting a launch wholesale acquisition cost near $27,000 per year. That estimate reflects an assumed net price of $20,000 after an approximate 25% rebate.
These analyst notes and the company milestones underscore why investors and market observers are watching Praxis ahead of several key regulatory and clinical events scheduled for 2026.
Summary of facts:
- Wolfe Research initiated coverage with an outperform rating and $500.00 price target.
- Praxis shares were trading at $347.50, near a 52-week high of $349.32.
- Stock performance: +413% over the past year and +602% over the last six months.
- Two new drug applications filed in February; potential approvals in 2026.
- Ulixacaltamide: positive Phase 3 Essential3 data, breakthrough therapy designation, projected >$3 billion peak sales by Wolfe Research.
- Relutrigine: NDA filed for SCN2A/SCN8A developmental and epileptic encephalopathy.
- Vormatrigine: first Phase 3 data expected H1 2026 for focal onset seizures; Wolfe Research sees potential for blockbuster status.
- Q4 EPS of -3.5 vs analysts' -3.09 forecast.
- Truist reiterated Buy, $500.00 target; projected ulixacaltamide launch WAC ~ $27,000/year, net pricing $20,000 after ~25% rebate.