What’s fueling PRAX stock’s jaw-dropping 235% surge on Thursday?

Praxis Precision Medicines (NASDAQ: PRAX stock) saw a skyrocketing 235% rally on Thursday after announcing positive topline results from two pivotal Phase 3 studies of ulixacaltamide for essential tremor, a common movement disorder.

The exceptional rally attracted considerable investor interest as it came with heavy trading volume and premarket gains, making it perfect for traders looking to make big on $10K or more worth of bets.

This breakthrough has investors pricing in a potential blockbuster treatment for the condition affecting millions.

PRAX stock: What the Phase-3 data actually shows

Praxis Therapeutics shared some pretty exciting news about its experimental drug, ulixacaltamide, and the results look very promising.

In Study 1, a parallel-group trial, patients taking ulixacaltamide showed a mean improvement of 4.3 points on the Modified Activities of Daily Living 11 (mADL11) scale after eight weeks, the main goal of the study.

That’s a pretty solid result, backed by a highly significant p-value of less than 0.0001. In simple terms, the data was statistically rock-solid.

That means patients and clinicians both saw clear improvements.

Then there’s Study 2, which used a randomized-withdrawal design.

It also met its main goal, showing that patients who stayed on ulixacaltamide maintained their progress better than those switched to placebo during the withdrawal phase.

The study also found continued improvements in the rate of disease progression.

On the safety side, the results were reassuring; no drug-related serious adverse events were reported, which is consistent with earlier trials.

Praxis CEO Marcio Souza emphasized how big this could be for people living with essential tremor, a common and often debilitating movement disorder.

He pointed out that more than 200,000 people expressed interest in joining the study, a sign of just how much unmet need there is for better treatments.

Souza said these results underscore ulixacaltamide’s potential to make a real difference for patients who’ve been waiting far too long for effective options.

Volume, analyst moves and what’s priced in

Following the upbeat clinical news, PRAX stock absolutely exploded on Thursday, soaring more than 235% intraday.

Shares shot up to around $172.35, compared to the previous day’s close of about $57.35, a jaw-dropping move that had traders buzzing.

Trading activity was off the charts too, with roughly 5.9 million shares changing hands, way above its usual daily average of just 466,000.

Even before the market opened, the enthusiasm was building.

Analysts were quick to weigh in with upbeat takes.

Piper Sandler reaffirmed its Overweight rating and slapped a $270 price target on the stock, pointing to the strong Phase 2 and Phase 3 data and key upcoming catalysts, especially the anticipated NDA (New Drug Application) submission.

According to TipRanks, the broader analyst community is on the same page: PRAX holds a “Strong Buy” consensus, with an average price target hovering around $270.

That optimism reflects growing confidence in the commercial potential of ulixacaltamide and its ability to be a game-changer in neurological disorders.

The post What’s fueling PRAX stock’s jaw-dropping 235% surge on Thursday? appeared first on Invezz