NEW YORK, Jan 7, 2026, 12:02 PM EST — Regular session
- Shares up about 6% midday after Praxis priced a $575 million stock offering
- Deal priced at $260 a share, a discount to Tuesday’s close
- Company also flagged about $925 million in cash and marketable securities at year-end
Praxis Precision Medicines shares rose about 6% on Wednesday after the biotech priced a $575 million public offering overnight, even as the deal came at a discount to the prior close. GlobeNewswire
The Boston-based company late Tuesday set the offering at $260 per share for 2.212 million shares, and gave underwriters a 30-day option to buy up to 331,800 more shares. The deal is expected to close on or about Jan. 8, the company said. GlobeNewswire
The stock was last at about $289.5 in midday trading, versus Tuesday’s close near $272.9. Traders often watch whether a secondary offering “breaks” a momentum name — or attracts fresh buyers once the terms are known.
Praxis also filed an 8-K on Tuesday saying it ended 2025 with roughly $925 million in cash, cash equivalents and marketable securities, based on a preliminary unaudited estimate. SEC
The company said the offering may include “pre-funded warrants” for some investors — a structure that functions much like stock but can help buyers manage position limits, since most of the purchase price is paid upfront with a small amount due on exercise. GlobeNewswire
Investors have been keying on Praxis’ push toward a U.S. regulatory filing for ulixacaltamide in essential tremor after the FDA granted Breakthrough Therapy Designation late last month. CEO Marcio Souza said the company expected to submit an NDA in early 2026. GlobeNewswire
Still, the usual risk with a large equity raise is dilution, and biotech funding windows can shut fast if trial timelines slip or regulators ask for more data. The offering is also “subject to market conditions,” the company warned in its launch release. GlobeNewswire
On the tape, the stock’s swingy session left it well above the $260 offering price — a level traders may treat as a near-term reference point — after the shares touched the low $265 area earlier in the day.
