- The stock price of Praxis Precision Medicines Inc (NASDAQ: PRAX) fell by over 15% during intraday trading. This is why it happened.
The stock price of Praxis Precision Medicines Inc (NASDAQ: PRAX) fell by over 15% during intraday trading. Even though the company reported positive news, the stock price fell. It appears that investors were responding negatively to an IPO lockup expiration today. As of today, 10 million shares at an initial share price of $19 had expired, according to MarketBeat.
What was the company’s positive news today?
Praxis Precision Medicines announced that the U.S. Food and Drug Administration (FDA) has granted orphan drug designation for PRAX-562 for the treatment of SCN8A development and epileptic encephalopathy (SCN8A-DEE).
PRAX-562 is known as a small molecule and is the first selective persistent sodium current blocker in development for the treatment of a wide range of rare CNS disorders. And Praxis plans to explore the potential for PRAX-562 in a range of rare pediatric DEEs, including SCN8A-DEE and SCN2A-DEE. The FDA has granted rare pediatric disease designations to PRAX-562 for the treatment of SCN8A-DEE and SCN2A-DEE. PRAX-562 is currently being evaluated in a Phase 1 clinical trial in adult healthy volunteers.
“We designed PRAX-562 with patients in mind, believing that focusing on targeting persistent sodium current rather than peak current has the potential to create a truly differentiated treatment for people living with a variety of CNS conditions. We look forward to sharing continued progress along our clinical development path for PRAX-562, as we seek to establish proof of concept in rare adult cephalgias later this year while continuing to advance toward studies in DEEs and potentially other conditions.”
— Marcio Souza, president and chief executive officer of Praxis
“The PRAX-562 data we have generated to date in animal models of epilepsy have been promising and it is encouraging that we have seen a favorable safety profile in our ongoing Phase 1 healthy volunteer trial. In an SCN8A animal model, a clear dose response was observed with PRAX-562 resulting in complete protection of seizures in mice at the highest dose.”
— Bernard Ravina, M.D., chief medical officer of Praxis
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