Praxis Precision Medicines, Inc. Announces Pricing of $575 Million Public Offering

Rhea-AI Summary

Praxis Precision Medicines (NASDAQ: PRAX) priced an underwritten public offering of 2,212,000 common shares at $260.00 per share, with gross proceeds of about $575 million before underwriting discounts and expenses. The company granted underwriters a 30‑day option to purchase up to 331,800 additional shares (15% overallotment). The offering is expected to close on or about January 8, 2026, subject to customary closing conditions and market conditions. The offering is being made from a shelf registration that became effective December 23, 2024; a preliminary prospectus supplement was filed January 6, 2026.

Positive

• Gross proceeds of approximately $575 million
• Offered 2,212,000 shares at $260.00 per share
• Underwriters granted 331,800-share 30-day option (15% overallotment)

Negative

• Net proceeds will be reduced by underwriting discounts and offering expenses
• Closing is subject to market conditions and customary closing conditions

Key Figures

Offering size $575 million Expected gross proceeds from January 2026 public offering

Shares offered 2,212,000 shares Common stock in January 2026 underwritten public offering

Offering price $260.00 per share Public offering price for common stock

Underwriters’ option 331,800 shares Additional shares under 30-day option

Option period 30 days Underwriters’ option window to buy additional shares

Expected close date January 8, 2026 Anticipated closing of the public offering

Effective registration date December 23, 2024 Date registration statement became effective

Prospectus filing date January 6, 2026 Preliminary prospectus supplement filing with SEC

Market Reality Check

$292.63 Last Close

Volume Volume 302,315 is below 20-day average 654,576, showing muted pre-offering trading. low

Technical Price 272.9 is trading above the 200-day MA at 92.41, indicating a strong pre-offering uptrend.

Peers on Argus 1 Up

PRAX was down 1.45% while key biotech peers were mixed: AVXL -2.79%, EYPT -3.27%, NKTR -3.42%, ZBIO -3.49%, and SANA up 7.51%, suggesting company-specific dynamics rather than a uniform sector move.

Common Catalyst Select peers had regulatory news (e.g., FDA feedback at AVXL), but no broad capital-raising theme across the group.

Historical Context

Date	Event	Sentiment	Move	Catalyst
Dec 29	Regulatory designation	Positive	+13.3%	Breakthrough Therapy Designation for ulixacaltamide and NDA planning.
Dec 11	Regulatory meeting	Positive	+2.2%	FDA cleared early 2026 NDA filing for relutrigine in DEEs.
Dec 09	Trial design update	Positive	-4.7%	FDA alignment on simplified single-arm EMBRAVE3 design for elsunersen.
Dec 08	Clinical data update	Positive	+9.3%	Strong EMBOLD and RADIANT clinical data across epilepsy programs.
Dec 04	Topline trial results	Positive	+3.0%	Positive registrational EMBOLD topline results and early stop for efficacy.

Pattern Detected

Recent news flow has been dominated by positive clinical and FDA interactions, which generally coincided with positive price reactions, with one notable negative reaction despite constructive regulatory alignment.

Recent Company History

Over the past months, Praxis reported multiple late-stage neurology milestones. In early December 2025, positive EMBOLD data for relutrigine in SCN2A/SCN8A DEEs and AES clinical updates drove moves of 3.05% and 9.27%. Additional EMBRAVE3 design simplification for elsunersen on Dec 9 saw a -4.74% reaction despite constructive changes. By Dec 29, Breakthrough Therapy Designation for ulixacaltamide and preparations for early 2026 NDAs reinforced a trajectory toward multiple potential filings, setting the backdrop for today’s capital raise.

Market Pulse Summary

This announcement details a sizable underwritten public offering, including share count, pricing and an expected close on January 8, 2026. It follows a series of late 2025 milestones, such as positive Phase 3 epilepsy data and FDA designations, that expanded PRAX’s neurology pipeline visibility. Investors may focus on how the new capital supports upcoming NDA submissions and commercialization efforts while balancing dilution from additional shares. Key metrics to watch include future cash disclosures, R&D spend and further regulatory updates.

Key Terms

underwritten public offering financial

"announced the pricing of its underwritten public offering of 2,212,000 shares"

An underwritten public offering is when a company sells new shares of its stock to the public with the help of a financial firm, called an underwriter. The underwriter agrees to buy all the shares upfront, reducing the company's risk, and then sells them to investors. This process helps companies raise money quickly and confidently from a wide range of buyers.

gross proceeds financial

"The gross proceeds from the offering are expected to be approximately $575 million"

The total amount of cash a company receives from a financing event or sale before any fees, expenses, taxes or deductions are taken out. Investors watch gross proceeds because it shows the raw scale of new capital being raised—think of it as the paycheck amount before withholdings—which helps assess how much funding is available for operations, growth, debt payoff or how much shareholder dilution might occur once costs are removed.

book-running managers financial

"Piper Sandler, TD Cowen, Guggenheim Securities and Truist Securities are acting as joint book-running managers"

Book-running managers are the main banks or financial firms that organize and oversee a company's sale of new stocks or bonds. They help set the price, decide how many to sell, and coordinate the process to make sure everything runs smoothly. Their role is important because they guide the company through the complex process of raising money from investors.

prospectus supplement regulatory

"A preliminary prospectus supplement related to the offering was filed with the SEC"

A prospectus supplement is an additional document provided alongside a company's main offering details, offering updated or extra information about a specific financial product being sold. It helps investors understand the latest terms, risks, and details of the investment, similar to how an update or revision clarifies or expands on original instructions, ensuring they have current and complete information before making a decision.

base prospectus regulatory

"including a base prospectus, that was filed by Praxis with the Securities and Exchange Commission"

A base prospectus is a detailed document that provides essential information about a financial offering, such as a bond or share issue. It acts like a comprehensive guide for investors, explaining what the investment involves, the risks involved, and how the process works. This helps investors make informed decisions before committing their money.

Securities and Exchange Commission regulatory

"was filed by Praxis with the Securities and Exchange Commission (SEC)"

A national government agency that enforces rules for buying, selling and disclosing information about stocks and other investments, acting like a referee and scorekeeper for financial markets. It requires companies to share clear, regular financial and business information and investigates fraud or rule-breaking, which matters to investors because those rules and disclosures help ensure fair prices, reduce hidden risks and make it easier to compare investment choices.

AI-generated analysis. Not financial advice.

BOSTON, Jan. 06, 2026 (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 2,212,000 shares of its common stock at a public offering price per share of $260.00. The gross proceeds from the offering are expected to be approximately $575 million, before deducting underwriting discounts and commissions and estimated offering expenses payable by Praxis. All shares in the offering are being offered by Praxis. In addition, Praxis has granted the underwriters a 30-day option to purchase up to 331,800 additional shares of common stock at the public offering price, less underwriting discounts and commissions. The offering is expected to close on or about January 8, 2026, subject to market conditions and the satisfaction of customary closing conditions.

Piper Sandler, TD Cowen, Guggenheim Securities and Truist Securities are acting as joint book-running managers for the offering. LifeSci Capital, Baird and Oppenheimer & Co. are acting as lead managers for the offering. H.C. Wainwright & Co. and Needham & Company are acting as co-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 January 6, 2026. 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: 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; TD Securities (USA) LLC, c/o Broadridge Financial Solutions, 1155 Long Island Avenue, Edgewood, NY 11717 or by email at TDManualrequest@broadridge.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
LifeSci Advisors
Daniel@lifesciadvisors.com
617-430-7576

FAQ

How many shares did Praxis (PRAX) offer in the January 2026 public offering?

Praxis offered 2,212,000 common shares in the offering.

What was the public offering price per share for PRAX on January 7, 2026?

The public offering price was $260.00 per share.

How much gross capital will Praxis (PRAX) raise from the offering?

Gross proceeds are expected to be approximately $575 million before fees and expenses.

Does the PRAX offering include an overallotment option and how large is it?

Yes; underwriters have a 30‑day option to buy up to 331,800 additional shares (15% overallotment).

When is the PRAX public offering expected to close?

The offering is expected to close on or about January 8, 2026, subject to customary conditions.

Where can investors find the final prospectus supplement for the PRAX offering?

The final prospectus supplement will be filed with the SEC and available at www.sec.gov.