Praxis Precision Medicines, a clinical-stage biopharmaceutical company, has recently released its 10-Q report. The company is focused on developing therapies for central nervous system disorders characterized by neuronal excitation-inhibition imbalance. Praxis Precision Medicines is currently developing ulixacaltamide, PRAX-562, PRAX-628, PRAX-222, PRAX-020, PRAX-080, PRAX-090, and PRAX-100, targeting various neurological disorders. The company utilizes two proprietary platforms, Cerebrum™ and Solidus™, for the development of precision therapies.
In the Management’s Discussion and Analysis of Financial Condition and Results of Operations, Praxis Precision Medicines reported a net loss of $39.6 million for the three months ended March 31, 2024. As of March 31, 2024, the company had an accumulated deficit of $693.5 million. Praxis Precision Medicines has not generated any revenue from product sales since its inception and does not expect to do so for several years, if at all. The company relies heavily on external consultants, collaborators, and organizations to conduct its preclinical and clinical activities.
As of March 31, 2024, Praxis Precision Medicines had cash, cash equivalents, and marketable securities of $243.3 million. The company expects that its current financial resources, together with proceeds from a follow-on public offering in April 2024, will be sufficient to fund its operating expenditures and capital expenditure requirements necessary to advance research efforts and clinical trials into 2027. Praxis Precision Medicines also conducted a 1-for-15 reverse stock split on November 28, 2023.
The company recognized $0.4 million of collaboration revenue from a Collaboration Agreement with UCB Biopharma SRL during the three months ended March 31, 2024. Research and development expenses for the same period totaled $26.98 million, primarily incurred for discovery efforts, clinical development costs, and manufacturing technology and infrastructure development. Praxis Precision Medicines expects its research and development expenses to be maintained or increase in the foreseeable future as it advances its product candidates through the development phase and expands into additional therapeutic areas.
Praxis Precision Medicines emphasized the uncertainty of its ability to generate significant revenue from product sales and the potential need for substantial additional funding to support its continuing operations and pursue its growth strategy. The company may finance its operations through the sale of equity, debt financings, or other capital sources, including potential collaborations with other companies or strategic transactions. Following these announcements, the company's shares moved -5.8%, and are now trading at a price of $45.95. For the full picture, make sure to review Praxis Precision Medicines's 10-Q report.
