Praxis Precision Medicines (NASDAQ:PRAX) Stock Price Target Lowered After Drug Study Setback

• Analyst Wedbush significantly lowered the stock price target for Praxis Precision Medicines (NASDAQ:PRAX) from $166.00 to $162.00.
• This revision follows Praxis' Phase 2/3 POWER1 study for its epilepsy drug, vormatrigine, failing to meet its primary endpoint.
• Despite the setback, Praxis noted encouraging findings with higher doses and a solid safety profile, leading to a reassessment of its POWER2 study.

Praxis Precision Medicines (NASDAQ:PRAX) is a clinical-stage biopharmaceutical company that develops treatments for central nervous system disorders. Following recent news about one of its key drug programs, an analyst from Wedbush has adjusted their forecast for the company's stock value.

On June 2, 2026, the analyst lowered their price target for Praxis Precision Medicines to $162.00 from a previous target of $166.00. A price target represents an analyst's estimate of a stock's future price. At the time of this change, Praxis was trading at $335.16 per share.

This revision follows Praxis' announcement about its Phase 2/3 POWER1 study for vormatrigine, a drug for epilepsy. As highlighted by Reuters, the study failed to meet its primary endpoint. A primary endpoint is the main goal a clinical trial must achieve to prove a drug's effectiveness.

Despite the setback, Praxis noted encouraging findings. The drug performed better at a higher dose and met a secondary measure for a 50% response rate. CEO Marcio Souza stated that the company is encouraged by the signal seen in the higher dose group and the drug's solid safety profile.

As a result, Praxis is pausing enrollment in its POWER2 study to reassess the program. The company reported that vormatrigine was generally well-tolerated, with fewer than 10% of participants discontinuing due to adverse events. The stock saw a 4.23% decline on the news.