Praxis Precision Medicines (PRAX) Announces 4M Share Proposed Public Offering of Common Stock

May 11, 2021 4:25 PM EDT
Get Alerts PRAX Hot Sheet
Price: $21.52 -4.74%

Overall Analyst Rating:
    BUY (= Flat)

Trade Now! 
Join SI Premium – FREE

Get inside Wall Street with StreetInsider Premium. Claim your 1-week free trial here.

Praxis Precision Medicines, Inc. (NASDAQ: PRAX), a clinical-stage biopharmaceutical company translating genetic insights into the development of therapies for central nervous system disorders (CNS) characterized by neuronal imbalance, today announced that it has commenced an underwritten public offering of 4,000,000 shares of its common stock. Praxis also intends to grant the underwriters a 30-day option to purchase up to an additional 15% of the shares of its common stock sold in the public offering. All shares in the offering are to be sold by Praxis. The offering is subject to market conditions, and there can be no assurance as to whether or when the offering may be completed, or the actual size or terms of the offering.

Praxis intends to use the net proceeds from the offering, together with its existing cash, cash equivalents and short-term investments, to (i) advance PRAX-114 into and through the completion of the Phase 2/3 Aria Study in monotherapy major depressive disorder (“MDD”), which is intended to satisfy one of two registrational trials required by the U.S. Food and Drug Administration to support clinical efficacy for monotherapy MDD, advance PRAX-114 into and through the completion of Praxis’ Phase 2 trial for the adjunctive treatment of MDD, complete Part B (perimenopausal depression) of the Phase 2a clinical trial for PRAX-114, initiate a Phase 3 monotherapy trial in MDD, initiate and complete a Phase 2 trial in PTSD, initiate and complete a Phase 2 trial in essential tremor (“ET”) and pursue the development of PRAX-114 in an additional indication; (ii) complete its ongoing Phase 2a clinical trial and a Phase 2 randomized, controlled clinical trial for PRAX-944 in ET and initiate and complete a Phase 2 trial of PRAX-944 in Parkinson’s Disease; (iii) complete its ongoing PRAX-562 Phase 1 healthy volunteer trial and initiate and complete Phase 2 trials of PRAX-562 in Short-lasting Unilateral Neuralgiform headache attacks with Conjunctival injection and Tearing (“SUNCT”), Short-lasting Unilateral Neuralgiform headache with Autonomic symptoms (“SUNA”), and Trigeminal Neuralgia (“TN”), and in developmental epileptic encephalopathies (“DEEs”), including SCN8A-DEE and SCN2A-DEE and (iv) advance other programs in its pipeline and support working capital and other general corporate purposes.

BofA Securities, Cowen and Piper Sandler are acting as joint bookrunning managers for the offering, and Wedbush PacGrow is acting as lead manager for the offering.

A registration statement on Form S-1, which includes a preliminary prospectus relating to and describing the terms of the offering, has been filed with the U.S. Securities and Exchange Commission (the “SEC”), but has not yet become effective. These securities may not be sold nor may offers to buy be accepted prior to the time that the registration statement becomes effective.

Serious News for Serious Traders! Try Premium Free!

You May Also Be Interested In

Related Categories

Equity Offerings

Related Entities

Cowen & Co, S1, FDA