Praxis Insiders Unload $7.5M in Stock After 300% Rally
Executive profit-taking follows a massive stock surge driven by positive clinical trial data for the company's essential tremor drug, ulixacaltamide.
Two top executives at Praxis Precision Medicines Inc. (PRAX) have sold a combined $7.5 million in company stock, capitalizing on a staggering 300% rally that followed promising late-stage clinical trial results for its lead drug candidate.
The sales, executed by General Counsel Alex Nemiroff and Principal Accounting Officer Lauren Mastrocola, represent a significant liquidation of over half of their respective holdings. This move is drawing scrutiny from investors, who are weighing the bullish prospects of the company’s drug pipeline against bearish signals from top insiders.
The context for the rally began on October 16, when Praxis announced positive topline results from its Phase 3 study of ulixacaltamide, a treatment for essential tremor. The news acted as a rocket booster for the company’s stock, which vaulted from around $48 per share in late August to over $160 in the days following the company's announcement. Shares of the Boston-based biotech were trading at $169.80 in Friday's session, a further gain of 3.5%.
Essential tremor is a nervous system disorder that causes involuntary, rhythmic shaking, affecting millions of people and often lacking effective treatment options. The successful data from the Essential3 program positioned ulixacaltamide as a potentially significant new therapy, prompting the massive revaluation of the company.
Following this surge, regulatory filings indicate the insider sales began. On November 20, Lauren Mastrocola filed a Form 144 with the Securities and Exchange Commission, signaling a proposed sale of 13,600 securities. Subsequent reports confirmed Mastrocola sold shares valued at approximately $2.6 million. While insider sales can be pre-planned for personal financial management, large-scale selling after a steep price appreciation is often interpreted by the market as a sign that executives believe the stock may be fully valued.
Despite the significant profit-taking from insiders, Wall Street analysts remain overwhelmingly bullish on the company’s prospects. Of the 14 analysts covering the stock, 13 maintain a “Buy” or “Strong Buy” rating, with only one recommending to sell. The average analyst price target sits at $323.93, suggesting a potential upside of more than 90% from its current price.
This creates a classic divergence for investors: the forward-looking optimism of clinical data and analyst ratings versus the immediate, concrete action of executives cashing in their chips. With a market capitalization now at $4.73 billion, Praxis has firmly moved from a speculative biotech to a company with a near-term commercial opportunity.
Praxis Precision Medicines has stated it plans to prepare a New Drug Application (NDA) for ulixacaltamide for submission to the U.S. Food and Drug Administration (FDA) by early 2026. As the company moves toward potential commercialization, investors will be closely watching for further insider transactions and clinical updates to determine if the recent rally has more room to run or if the executives’ sales were a prescient sign of a near-term peak.