What is the current valuation of Praxis Precision Medicines’s PRAX-628

The revenue for PRAX-628 is expected to reach an annual total of $35 mn by 2037 globally based off GlobalData’s Expiry Model. The drug’s revenue forecasts along with estimated costs are used to measure the value of an investment opportunity in that drug, otherwise known as net present value (NPV). Applying the drug’s phase transition success rate to remaining R&D costs and likelihood of approval (LoA) to sales related costs provides a risk-adjusted NPV model (rNPV). The rNPV model is a more conservative valuation measure that accounts for the risk of a drug in clinical development failing to progress.

PRAX-628 Overview

PRAX-628 is under development for the treatment of focal onset epilepsy. It acts by targeting voltage-gated sodium (Nav). It is administered through oral route. It is developed based on CEREBRUM small molecule platform.

Praxis Precision Medicines Overview

Praxis Precision Medicines (Praxis) is a clinical-stage biopharmaceutical company that translates genetic insights for the development of novel therapies to treat central nervous system disorders. The company’s pipeline program includes PRAX-114, PRAX-944, PRAXIS-050 and PRAXIS-040 which are molecule GABA receptors for the treatment of psychiatry and movement disorders. Praxis provides programs such as PRAX-562, PRAX-222, PRAX-020, SCN2A-LCF, SYNGAP1, PCDH19, and PRAXIS-030 are used for the treatment of genetic epilepsies. Praxis is headquartered in Cambridge, Massachusetts, the US.

The operating loss of the company was US$215 million in FY2022, compared to an operating loss of US$167.3 million in FY2021. The net loss of the company was US$214 million in FY2022, compared to a net loss of US$167.1 million in FY2021.
The company reported revenues of US$0.5 million for the third quarter ended September 2023, a decrease of 40.1% over the previous quarter.

For a complete picture of PRAX-628’s valuation, buy the drug’s risk-adjusted NPV model (rNPV) here.

GlobalData, the leading provider of industry intelligence, provided the underlying data, research, and analysis used to produce this article.

To create this model, GlobalData takes into account factors including patent law, known and projected regulatory approval processes, cash flows, drug margins and company expenses. Combining these data points with GlobalData’s world class analysis creates high value models that companies can use to help in evaluation processes for each drug or company.

The rNPV method integrates the probability of a drug reaching a clinical stage into the cash flow at that time, which provides a more accurate valuation, as it considers the probability that the drug never makes it through the clinical pathway to commercialization. GlobalData’s rNPV model uses proprietary likelihood of approval (LoA) and phase transition success rate (PTSR) data for the indication in the highest development stage, which can be found on GlobalData’s Pharmaceutical Intelligence Center.