Praxis Precision Medicines, Inc. Announces Pricing of $525 Million Public Offering

Rhea-AI Summary

Praxis Precision Medicines (NASDAQ: PRAX) priced an underwritten public offering to raise approximately $525 million gross by issuing 3,025,480 shares of common stock at $157.00 per share and pre-funded warrants to buy up to 318,470 shares at $156.9999 each.

The company granted underwriters a 30-day option to purchase up to 501,592 additional shares. The offering is expected to close on or about October 20, 2025, subject to market conditions and customary closing conditions.

Positive

• Gross proceeds of approximately $525 million
• Pre-funded warrants enable immediate capital without share issuance
• Underwritten offering provides firm capital access from book-runners

Negative

• Issuance of 3,025,480 shares implies shareholder dilution
• Underwriters' 30-day option could increase dilution by 501,592 shares
• Gross proceeds subject to underwriting discounts and offering expenses

Insights

Capital markets analyst

Praxis priced a sizeable underwritten equity offering to raise roughly $525 million, providing near-term capital while diluting existing equity.

The company is selling 3,025,480 shares at $157.00 per share plus pre-funded warrants for up to 318,470 shares at $156.9999, generating gross proceeds of about $525 million. The offering includes a 30-day option for up to 501,592 additional shares and is expected to close on or about October 20, 2025, subject to customary conditions.

This transaction directly increases cash runway if closed and transfers dilution to new investors; no use-of-proceeds or dilution percentage is provided here, so the practical effect on near-term operations cannot be quantified from these facts alone. Key dependencies include successful closing, the size of the underwriters' option exercise, and actual net proceeds after underwriting discounts and expenses.

Watch for the filed final prospectus supplement for exact net proceeds, intended use of proceeds, and full share count impact; expect these disclosures within days around the anticipated close on or about October 20, 2025. This information will clarify runway extension versus dilution and inform short-term capital planning assessments.

BOSTON, Oct. 16, 2025 (GLOBE NEWSWIRE) -- Praxis Precision Medicines, Inc. (NASDAQ: PRAX), a clinical-stage biopharmaceutical company translating genetic insights into the development of therapies for central nervous system (CNS) disorders characterized by neuronal excitation-inhibition imbalance, today announced the pricing of its underwritten public offering of 3,025,480 shares of its common stock at a public offering price per share of $157.00 and, in lieu of shares of common stock, pre-funded warrants to purchase up to an aggregate of 318,470 shares of common stock at a purchase price of $156.9999 per pre-funded warrant, which equals the public offering price per share of the common stock less the $0.0001 per share exercise price of each pre-funded warrant. The gross proceeds from the offering are expected to be approximately $525 million, before deducting underwriting discounts and commissions and estimated offering expenses payable by Praxis. All shares and pre-funded warrants in the offering are being offered by Praxis. In addition, Praxis has granted the underwriters a 30-day option to purchase up to 501,592 additional shares of common stock at the public offering price, less underwriting discounts and commissions. The offering is expected to close on or about October 20, 2025, subject to market conditions and the satisfaction of customary closing conditions.

TD Cowen, Piper Sandler, Guggenheim Securities and Truist Securities are acting as joint book-running managers for the offering. Oppenheimer & Co. and H.C. Wainwright & Co. are acting as lead managers for the offering.

The offering is being made pursuant to a shelf registration statement on Form S-3ASR, including a base prospectus, that was filed by Praxis with the Securities and Exchange Commission (SEC) and automatically became effective upon filing on December 23, 2024. A preliminary prospectus supplement related to the offering was filed with the SEC on October 16, 2025. The final prospectus supplement related to the offering will be filed with the SEC and will be available on the SEC’s website at www.sec.gov. Copies of the final prospectus supplement and the accompanying base prospectus relating to the offering, when available, may be obtained from: TD Securities (USA) LLC, 1 Vanderbilt Avenue, New York, NY 10017, c/o Broadridge Financial Solutions, 1155 Long Island Avenue, Edgewood, NY 11717 or by email at TDManualrequest@broadridge.com; Piper Sandler & Co., 350 North 5^th Street, Suite 1000, Minneapolis, MN 55401, Attention: Prospectus Department, by telephone at (800) 747-3924, or by email at prospectus@psc.com; Guggenheim Securities, LLC, Attention: Equity Syndicate Department, 330 Madison Avenue, 8th Floor, New York, NY 10017, by telephone at (212) 518-9544, or by email at GSEquityProspectusDelivery@guggenheimpartners.com; or Truist Securities, Inc., Attention: Equity Capital Markets, 740 Battery Ave SE, Atlanta, Georgia 30339, by telephone at (800) 685-4786 or by email at truistsecurities.prospectus@truist.com. The final terms of the offering will be disclosed in a final prospectus supplement to be filed with the SEC.

This press release shall not constitute an offer to sell or the solicitation of an offer to buy, nor shall there be any sale of these securities in any state or jurisdiction in which such an offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction.

Forward-Looking Statements
This press release contains forward-looking statements within the meaning of The Private Securities Litigation Reform Act of 1995 and other federal securities laws, including express or implied statements regarding Praxis’ future expectations, plans and prospects, including, without limitation, statements regarding the timing of the completion, and anticipated gross proceeds, of the offering, as well as other statements containing the words “anticipate,” “believe,” “continue,” “could,” “endeavor,” “estimate,” “expect,” “anticipate,” “intend,” “may,” “might,” “plan,” “potential,” “predict,” “project,” “seek,” “should,” “target,” “will” or “would” and similar expressions that constitute forward-looking statements under the Private Securities Litigation Reform Act of 1995.

The express or implied forward-looking statements included in this press release are only predictions and are subject to a number of risks, uncertainties and assumptions, including, without limitation, risks related to market conditions and other risks described in Praxis’ Annual Report on Form 10-K for the year ended December 31, 2024, its Quarterly Report on Form 10-Q for the quarter ended June 30, 2025 and other filings made with the SEC. Although Praxis’ forward-looking statements reflect the good faith judgment of its management, these statements are based only on information and factors currently known by Praxis. As a result, you are cautioned not to rely on these forward-looking statements. Any forward-looking statement made in this press release speaks only as of the date on which it is made. Praxis undertakes no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future developments or otherwise.

Investor Contact:
Praxis Precision Medicines
investors@praxismedicines.com
857-702-9452

Media Contact:
Dan Ferry
Life Science Advisors
Daniel@lifesciadvisors.com
617-430-7576

FAQ

How much is Praxis (PRAX) raising in the October 2025 offering?

Praxis is expected to raise approximately $525 million in gross proceeds.

What shares and instruments did PRAX price in the offering on October 17, 2025?

Praxis priced 3,025,480 common shares at $157 and pre-funded warrants for 318,470 shares at $156.9999 each.

When is the Praxis (PRAX) offering expected to close?

The offering is expected to close on or about October 20, 2025, subject to conditions.

What is the underwriters' option in the PRAX offering and how large is it?

Underwriters have a 30-day option to buy up to 501,592 additional shares at the public offering price.

Will the PRAX offering reduce existing shareholders' ownership?

Yes. The issuance of common shares and potential exercise of the option will result in shareholder dilution.

Where can investors find the final prospectus for PRAX's offering?

The final prospectus supplement will be filed with the SEC and available on www.sec.gov and from the listed underwriters.