H.C. Wainwright sees opportunity for quick rebound from Praxis after setback

H.C. Wainwright tells investors that the firm’s investment thesis on Praxis Precision (PRAX) Medicines has been based on the company’s “innovative” epilepsy portfolio, so today’s news that the Independent Data Monitoring Committee recommended that Study 1 of the Essential3 program be stopped for futility “ultimately doesn’t change our view.” While the firm is “not ready to declare ulixacaltamide as dead,” it views it as prudent to take it out of the model or discount the odds of success meaningfully and focus on the company’s epilepsy portfolio, which it still sees having “several value driving catalysts over the next 18 months.” The firm maintains a Buy rating and $120 price target for Praxis shares.