Praxis Precision Medicines said Tuesday every patient in a midstage study responded to its epilepsy treatment. The top 1% biotech stock rocketed to a year-high.
The company tested two doses of its drug in patients with photoparoxysmal response, a seizure disorder tied to light sensitivity. At the higher, 45-milligram dose, 100% of patients reached a complete response. This means all signs of the disease disappeared completely.
That easily beat the bar for success, which Piper Sandler analysts put at 50%.
This suggests Praxis could make a dent in what's expected to be a $3 billion epilepsy treatment market in the U.S., Piper Sandler analysts said. This includes treatments for focal epilepsy — where photoparoxysmal response lands — and developmental and epileptic encephalopathy.
The biotech stock catapulted 23.1% to close at 62.18. Shares hit their highest point since March 2023, MarketSurge.com data shows.
Biotech Stock's 'Fireworks' Update
Wedbush analyst Laura Chico said the 45-milligram dosing results "likely hold more fireworks" for the biotech stock than its earlier fourth-quarter report.
Earlier, Praxis said 80% of patients who received its 15-milligram dose had a complete response. The remaining 20% partially responded to the epilepsy treatment. Based on the strong signal in the lower-dose group, Piper Sandler analysts expected a strong response from the 45-milligram dose group.
Chico recently boosted her price target on the biotech stock to 41 from 29. She has a neutral rating on Praxis shares.
Shares have a best-possible IBD Digital Relative Strength Rating of 99. This means Praxis stock lands in the top 1% of all stocks when it comes to 12-month performance.
Follow Allison Gatlin on X, the platform formerly known as Twitter, at @IBD_AGatlin.
