Praxis Precision Medicines Reports $182.8 Million Net Loss for 2024, Highlights Funding and Clinical Developments

Praxis Precision Medicines, Inc. reported a net loss of $182.8 million for the year ended December 31, 2024, compared to a net loss of $123.3 million in 2023. This increase in net loss is primarily attributed to a $65.6 million rise in research and development expenses, partially offset by a $6.1 million increase in collaboration revenue. The company's accumulated deficit reached $836.7 million as of December 31, 2024. The increase in research and development costs stemmed largely from increased spending on the ulixacaltamide program ($49.8 million), vormatrigine program ($11.4 million), and relutrigine program ($2.3 million), partially offset by a decrease in expenses related to the elsunersen program ($13.3 million).

Significant developments during the year included the completion of several public offerings, raising approximately $590.6 million in net proceeds. These offerings involved common stock and pre-funded warrants. Additionally, the company terminated its Open Market Sale Agreements with Jefferies LLC in June 2023 and January 2024, and amended the March 2024 Sales Agreement in December 2024. A 1-for-15 reverse stock split of the company's common stock became effective on November 28, 2023. The company also entered into a collaboration and license agreement with Tenacia Biotechnology (Shanghai) Co., Ltd. in January 2024, receiving a $5 million upfront payment. In December 2024, UCB Biopharma SRL exercised its option to in-license global development and commercialization rights, resulting in a $6 million option exercise fee for Praxis.

Praxis's clinical-stage programs experienced mixed results. A pre-planned interim analysis of the Phase 3 Essential3 study for ulixacaltamide in essential tremor recommended stopping the study for futility; however, the company decided to continue both studies to completion. Positive results were announced for the vormatrigine PPR study and the relutrigine EMBOLD study. The company initiated or plans to initiate several studies for vormatrigine and elsunersen, aiming to generate data for regulatory submissions. As of February 26, 2025, Praxis employed 116 people.

The company's financial statements show cash, cash equivalents, and marketable securities totaling $469.5 million as of December 31, 2024. Praxis anticipates that these funds will be sufficient to support operations into 2028, but acknowledges the inherent uncertainties in drug development and the possibility of needing additional funding. The company's outlook is contingent upon the successful completion of ongoing clinical trials, regulatory approvals, and the ability to secure further funding if necessary. The company also highlighted numerous risks associated with its business, including those related to clinical development, regulatory approvals, competition, intellectual property, and financial resources.