Praxis Precision Medicines to Reduce Workforce after Study Failure in Major Depressive Disorder

CNS-focused genetic medicine biotech Praxis Precision Medicines said it will conduct a strategic realignment of its resources to conserve cash after shares tumbled more than 60 percent following the failure of a late-stage study of PRAX-114 for monotherapy treatment of major depressive disorder.

Photo: Marcio Souza, president and CEO of Praxis

“We are surprised and disappointed in the Aria Study results,” said Marcio Souza, president and CEO of Praxis. “PRAX-114 was well-tolerated in the Aria Study, yet the effect did not deliver to meet the needs of patients. Praxis is committed to our mission to help people suffering from CNS disorders and will prioritize our programs in movement disorders and epilepsy moving forward.”

The strategic realignment will result in a reduction of the company’s workforce and future operating expenses. As a result of the realignment, the company’s cash runway will now extend into 2024. The strategic alignment will focus on delivering phase 2b results for PRAX-944 in essential tremor and proof-of-concept for PRAX-562 in epilepsy and advancing the preclinical pipeline.

Praxis is focused on translating genetic insights into the development of therapies for CNS disorders characterized by neuronal excitation-inhibition imbalance with a pipeline that ranges from genetic epilepsies to both rare and more prevalent neurological and psychiatric disorders.

Author: Rare Daily Staff