Biotech Stock Still Up 700% Despite 30% Drop This Year as One Fund Discloses $9 Million Exit
Key Points
5AM Venture Management sold 170,000 shares of Praxis Precision Medicines in the fourth quarter.
The quarter-end position value decreased by $9.01 million as a result of the move, which marked a full exit from Praxis.
The position was previously 3.3% of the fund's AUM as of the prior quarter.
- 10 stocks we like better than Praxis Precision Medicines ›
On February 17, 2026, 5AM Venture Management reported selling its entire stake in Praxis Precision Medicines (NASDAQ:PRAX), an estimated $9.01 million trade based on last-disclosed position values.
What happened
According to a Securities and Exchange Commission (SEC) filing dated February 17, 2026, 5AM Venture Management sold its 170,000 shares of Praxis Precision Medicines. The fund now reports no position in PRAX, and the total quarter-end valuation for this holding was reduced by $9.01 million as a result.
What else to know
- Top holdings after the filing:
- NASDAQ:TRDA: $41.70 million (13.1% of AUM)
- NASDAQ:CAMP: $35.98 million (11.3% of AUM)
- NASDAQ:TYRA: $27.06 million (8.5% of AUM)
- NASDAQ:VRDN: $22.92 million (7.2% of AUM)
- NASDAQ:PHVS: $22.13 million (7.0% of AUM)
- As of Wednesday, shares of Praxis Precision Medicines were priced at $291.70, up nearly 700% over the past year and vastly outperforming the S&P 500’s roughly 19% gain in the same period.
Company overview
| Metric | Value |
|---|---|
| Price (as of Wednesday) | $291.70 |
| Market capitalization | $8.1 billion |
| Net income (TTM) | ($303.3 million) |
Company snapshot
- Praxis develops clinical-stage therapies targeting central nervous system disorders, with lead candidates including PRAX-114 for depression and PRAX-944 for essential tremor
- The firm operates a biotechnology business model focused on research, development, and out-licensing or commercialization of proprietary drug candidates
- It targets patients with neurological and psychiatric conditions, including major depressive disorder, perimenopausal depression, essential tremor, and rare epilepsies
Praxis Precision Medicines is a Boston-based clinical-stage biopharmaceutical company specializing in therapies for neurological disorders characterized by neuronal imbalance. The company leverages a pipeline of small molecules and antisense oligonucleotides aimed at high unmet medical needs in central nervous system indications.
What this transaction means for investors
Praxis has delivered one of the more explosive runs in biotech, but the underlying story is still early. The company is transitioning from a clinical-stage platform into a potential commercial player, with two NDA submissions already filed and multiple late-stage programs approaching key readouts. That kind of pipeline depth is what drove the nearly 700% surge.
But the financials tell the other side. The company generated no meaningful revenue and posted a net loss of about $303 million for the year, with research spending ramping aggressively as it pushes multiple programs forward. At the same time, it ended the year with roughly $926 million in cash and raised another $621 million in early 2026, giving it runway into 2028.
Placed alongside other holdings that lean heavily into clinical-stage biotech, this was one of several high-risk, high-upside bets. The difference here is timing. Shares have already given back about 30% since the quarter ended, suggesting the market is starting to price in execution risk rather than just pipeline potential, and that’s perhaps what 5AM had in mind with this sale.
Should you buy stock in Praxis Precision Medicines right now?
Before you buy stock in Praxis Precision Medicines, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Praxis Precision Medicines wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $508,877!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,115,328!*
Now, it’s worth noting Stock Advisor’s total average return is 936% — a market-crushing outperformance compared to 189% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors.
See the 10 stocks »
*Stock Advisor returns as of March 18, 2026.
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.
Recommended Articles
