Biotech Stock Up 266%: This New $55 Million Bet Signals Conviction in Praxis Amid Pipeline Progress

On February 13, 2026, Affinity Asset Advisors disclosed a new position in Praxis Precision Medicines (NASDAQ:PRAX), acquiring 185,000 shares in an estimated $54.53 million trade.

What happened

According to a SEC filing dated February 13, 2026, Affinity Asset Advisors, LLC reported a new position in Praxis Precision Medicines (NASDAQ:PRAX), acquiring 185,000 shares during the fourth quarter. The quarter-end value of the position registered as $54.53 million, reflecting the combined impact of the share purchase and subsequent market price changes.

What else to know

• The PRAX stake represents a new position, now accounting for 3.11% of the fund’s 13F reportable assets.
• Top five fund holdings after the filing:
  • NASDAQ: APGE: $93.21 million (6.9% of AUM)
  • NASDAQ: INSM: $78.32 million (5.8% of AUM)
  • NASDAQ: ABVX: $68.10 million (5.0% of AUM)
  • NASDAQ: VTYX: $58.56 million (4.3% of AUM)
  • NASDAQ: XENE: $56.02 million (4.1% of AUM)
• As of February 13, 2026, shares of Praxis Precision Medicines were priced at $317.25, up 266.1% over the past year and vastly outperforming the S&P 500 by 254.29 percentage points.

Company overview

Company snapshot

• Praxis Precision Medicines develops clinical-stage therapies for central nervous system disorders, with lead candidates including PRAX-114 (major depressive disorder), PRAX-944 (essential tremor), PRAX-562 (epilepsy and cephalgia), and antisense oligonucleotide programs targeting rare epilepsies.
• It’s a Boston-based biotechnology company specializing in novel therapies for neurological and psychiatric conditions characterized by neuronal imbalance.
• The firm leverages a robust clinical pipeline and strategic collaborations to address significant gaps in neurological and psychiatric care.

Praxis Precision Medicines focuses on innovative small molecules and antisense oligonucleotides, positioning itself to potentially deliver first-in-class treatments for complex neurological conditions. Its strategic approach aims to address unmet needs in central nervous system disorders.

What this transaction means for investors

Praxis is in the middle of one of the most consequential periods in its history. In January, the firm said it expects two new drug application submissions by mid-February for ulixacaltamide and relutrigine, with CEO Marcio Souza saying both “delivered compelling late-stage results and earned Breakthrough Therapy Designation.” In the firm’s latest earnings release, management highlighted pro forma cash and investments of approximately $956 million, including proceeds from an October offering, which are expected to fund operations into 2028. That kind of runway meaningfully reduces near-term financing risk.

Third-quarter research and development expense rose to $65.8 million, and net loss widened to $73.9 million. This is still a clinical-stage biotech, and volatility is the price of admission. But the portfolio now spans multiple late-stage and registrational programs, including relutrigine and vormatrigine, creating several shots on goal.

For a fund already concentrated in high-conviction biotech names, adding here after a 266% one-year move signals belief that the story is shifting from promise to potential commercialization. Ultimately, long-term investors should focus less on the recent share surge and more on regulatory milestones, cash discipline, and execution this year.

Jonathan Ponciano has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.