Praxis Precision Medicines, Inc. reported significant financial developments in its 10-Q filing for the third quarter of 2024. As of September 30, 2024, the company had cash and cash equivalents totaling $168.6 million, a substantial increase from $81.3 million at the end of 2023. Total current assets rose to $360.0 million, up from $84.9 million, while total assets reached $416.3 million compared to $87.9 million at year-end 2023. The increase in assets is attributed to successful capital raises, including a public offering that generated approximately $216 million in April 2024.
Collaboration revenue for the third quarter was $302,000, down from $468,000 in Q3 2023, and for the nine months ended September 30, 2024, it totaled $1.1 million, a decrease from $1.9 million in the same period last year. The company reported total operating expenses of $57.1 million for Q3 2024, significantly higher than $26.0 million in Q3 2023, driven primarily by increased research and development (R&D) expenses, which rose to $41.9 million from $17.3 million year-over-year. For the nine months ended September 30, 2024, total operating expenses were $137.3 million, compared to $100.5 million in 2023.
The net loss for Q3 2024 was $51.9 million, compared to a loss of $24.6 million in Q3 2023. For the nine months ended September 30, 2024, the net loss increased to $124.1 million from $96.4 million in the prior year. The accumulated deficit as of September 30, 2024, stood at $778.1 million.
The increase in R&D expenses is largely attributed to the company's Cerebrum™ platform, particularly the ulixacaltamide and vormatrigine programs, which saw significant activity in clinical trials. General and administrative expenses also rose, reflecting higher personnel-related costs and professional fees.
Praxis executed a 1-for-15 reverse stock split effective November 28, 2023, and reported a total of 18.6 million shares of common stock outstanding as of November 1, 2024. The company has raised approximately $1.0 billion in aggregate cash proceeds since its inception in 2015, with plans to continue financing operations through equity sales and strategic collaborations.
Looking ahead, Praxis anticipates ongoing operating losses as it continues to invest heavily in R&D, with expectations of sufficient cash reserves to fund operations into 2027.
About Praxis Precision Medicines, Inc.
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