Quick Take

Praxis Precision Medicines (PRAX) has filed to raise $126 million in an IPO of its common stock, according to an S-1 registration statement.

The firm is developing drug treatment candidates for central nervous system disorders.

PRAX has produced intriguing early efficacy results for its lead candidate and the IPO, while not cheap, is worth consideration.

Company & Technology

Cambridge, Massachusetts-based Praxis was founded to advance a pipeline of treatments for both broad psychiatric-related and rare diseases of the central nervous system having to do with neuronal imbalances.

Management is headed by president and Chief Executive Officer Mr. Marcio Souza, who has been with the firm since April 2020 and was previously Chief Operating Officer at PTC Therapeutics.

Below is a brief overview video of symptoms of major depressive disorder:

Source: Psych Hub Education

The company’s lead candidate, PRAX-114, is being developed to treat major depressive disorder as both a monotherapy and adjunctive therapy for both acute and maintenance settings.

The drug is in Phase 2a clinical trials in Australia and in early results the firm ‘observed marked improvements in depression scores in MDD patients within two weeks of treatment.’

Below is the current status of the company’s drug development pipeline:

Source: Company S-1 Filing

Investors in the firm have invested at least $118 million and include Blackstone, Novo Holdings, Vida Ventures and Eventide.

Market & Competition

According to a 2020 market research report by ResearchAndMarkets, the 7MM market size for treatments for major depressive disorder was $9.3 billion in 2017.

The United States accounts for the largest market size of the seven major markets (U.S., EU5 and Japan)

There were an estimated 34 million cases of major depressive disorder in 2017 in the seven major markets.

Major competitive vendors that provide or are developing treatments include:

  • Sage Therapeutics

Praxis Precision Medicines (PRAX) intends to raise $126 million in an IPO of its common stock, according to an S-1 registration statement.

Cambridge, Massachusetts-based Praxis was founded to advance a pipeline of treatments for both broad psychiatric-related and rare diseases of the central nervous system having to do with neuronal imbalances.

Management is headed by president and Chief Executive Officer Mr. Marcio Souza, who has been with the firm since April 2020 and was previously Chief Operating Officer at PTC Therapeutics.

Below is a brief overview video of symptoms of major depressive disorder:

Source: Psych Hub Education

The company’s lead candidate, PRAX-114, is being developed to treat major depressive disorder as both a monotherapy and adjunctive therapy for both acute and maintenance settings.

The drug is in Phase 2a clinical trials in Australia and in early results the firm ‘observed marked improvements in depression scores in MDD patients within two weeks of treatment.’

Below is the current status of the company’s drug development pipeline:

praxispipe

Source: Company S-1 Filing

Investors in the firm have invested at least $118 million and include Blackstone, Novo Holdings, Vida Ventures and Eventide.

According to a 2020 market research report by ResearchAndMarkets, the 7MM market size for treatments for major depressive disorder was $9.3 billion in 2017.

The United States accounts for the largest market size of the seven major markets (U.S., EU5 and Japan)

There were an estimated 34 million cases of major depressive disorder in 2017 in the seven major markets.

Major competitive vendors that provide or are developing treatments include:

  • Sage Therapeutics (SAGE)
  • Jazz Pharmaceuticals (JAZZ)
  • SK-Pharma
  • Xenon Pharmaceuticals (XENE)

Praxis’s recent financial results are typical of clinical stage biopharmas in that they feature no revenue and significant R&D and G&A costs associated with its development efforts.

Below are