Investor Buys Up $81 Million in Praxis Stock as Shares Soar Over 300% in One Year
Key Points
Baker Bros. Advisors LP added 437,000 shares of Praxis Precision Medicines in the fourth quarter; the estimated transaction value is $81.38 million based on quarterly average pricing.
Meanwhile, the quarter-end position value increased by $295.48 million, reflecting both share purchases and stock price appreciation.
Post-trade, the fund holds 1,126,488 shares valued at $332.02 million.
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On February 17, 2026, Baker Bros. Advisors LP disclosed a buy of 437,000 Praxis Precision Medicines (NASDAQ:PRAX) shares, estimated at $81.38 million based on quarterly average pricing.
What happened
According to a recent SEC filing, Baker Bros. Advisors increased its stake in Praxis Precision Medicines by 437,000 shares during the fourth quarter of 2025. The estimated value of the transaction is $81.38 million, calculated using the period's average closing price. The post-trade stake stood at 1,126,488 shares, with the quarter-end valuation up by $295.48 million due to both trading activity and price movements.
What else to know
- Baker Bros. Advisors’ buy brings its Praxis Precision Medicines stake to 1.94% of 13F reportable AUM.
- Top holdings after the filing:
- NASDAQ:INCY: $3.04 billion (17.8% of AUM)
- NASDAQ:ONC: $2.67 billion (15.7% of AUM)
- NASDAQ:MDGL: $1.25 billion (7.3% of AUM)
- NASDAQ:INSM: $1.15 billion (6.7% of AUM)
- NASDAQ:ACAD: $1.15 billion (6.7% of AUM)
- As of February 17, 2026, Praxis Precision Medicines shares were priced at $328.04, up 317.1% over the past year and vastly outperforming the S&P 500 by 249.48 percentage points.
Company overview
| Metric | Value |
|---|---|
| Price (as of market close 2/17/26) | $328.04 |
| Market capitalization | $7 billion |
| Revenue (TTM) | $7.46 million |
| Net income (TTM) | ($273.04 million) |
Company snapshot
- Praxis Precision Medicines develops clinical-stage therapies for central nervous system disorders, with lead candidates including PRAX-114 for major depressive disorder and PRAX-944 for essential tremor.
- The company operates a research-driven biopharmaceutical model, generating revenue primarily through collaboration agreements and milestone payments, with future growth tied to successful clinical development and potential product commercialization.
- Primary customers and end-users are healthcare providers and patients affected by neurological and psychiatric disorders, with a focus on underserved indications in the CNS space.
Praxis Precision Medicines is a Boston-based biotechnology company focused on advancing therapies for neurological and psychiatric disorders with significant unmet medical need. The company leverages a robust pipeline of differentiated clinical candidates targeting neuronal imbalance, supported by strategic collaborations and licensing agreements. Its approach aims to deliver first-in-class or best-in-class treatments, positioning Praxis as a potential leader in the CNS therapeutics market.
What this transaction means for investors
Praxis is moving from development stage volatility toward potential commercialization, and that shift often creates the widest dispersion in outcomes, but Baker Bros. seems confident in the firm, and there are certainly reasons to be.
Two NDAs were submitted in early 2026 for ulixacaltamide in essential tremor and relutrigine in SCN2A and SCN8A developmental and epileptic
encephalopathies. Management believes four late-stage assets collectively represent more than $20 billion in revenue potential. And on top of that, the balance sheet is not in a fragile position. Praxis ended 2025 with $926.1 million in cash and investments, and an additional $621 million from a January 2026 offering is expected to fund operations into 2028.
The spending, meanwhile, reflects ambition. Research and development expenses reached $267.1 million for 2025, with a full-year net loss of $303.3 million.
Within a portfolio dominated by multibillion-dollar oncology positions, a roughly 2% allocation is meaningful but not outsized. Long-term investors should focus on regulatory timelines, launch execution, and whether epilepsy data in the first half of 2026 reinforce the thesis. An over 300% stock move prices in optimism, and though, approval and clean commercialization could justify it, delays or bad surprises would not.
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Jonathan Ponciano has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends BeOne Medicines Ag and Incyte. The Motley Fool has a disclosure policy.
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