Praxis Precision Cuts Price Target to $162 After POWER1 Trial Failure
PRAX•Wedbush analysts trimmed Praxis Precision Medicines’ price target from $166 to $162 following the Phase 2/3 POWER1 trial’s failure to meet its primary endpoint. Despite a 4.23% stock drop, higher-dose vormatrigine showed a 50% response rate with under 10% discontinuations, prompting a POWER2 study reassessment.
1. Price Target Reduction
On June 2, Wedbush analysts lowered their price target for Praxis Precision Medicines from $166 to $162 per share, reflecting concerns over recent trial results and potential valuation pressures.
2. POWER1 Study Failure
The Phase 2/3 POWER1 trial of epilepsy drug vormatrigine failed to meet its primary endpoint, signaling insufficient efficacy at the tested doses to justify progression under current parameters.
3. Encouraging High-Dose Data
Higher-dose cohorts achieved a 50% seizure-response rate, and fewer than 10% of participants discontinued due to adverse events, demonstrating a solid safety profile that supports further dosage exploration.
4. POWER2 Reassessment and Market Reaction
Praxis paused enrollment in the POWER2 study to reassess trial design based on the POWER1 insights, while the stock declined 4.23% on the news as investors weighed future clinical strategies.
