This Biotech Stock Up 700% Is Still a Top Holding Despite a $9.3 Million Sale Last Quarter

Cormorant Asset Management disclosed a sale of 50,000 shares of Praxis Precision Medicines (NASDAQ:PRAX) in a February 17, 2026, SEC filing, with an estimated transaction value of $9.31 million based on the quarter’s average share price.

What happened

According to a February 17, 2026, SEC filing, Cormorant Asset Management reduced its stake in Praxis Precision Medicines by 50,000 shares during the fourth quarter of 2025. The estimated value of the shares sold was $9.31 million, based on the average unadjusted closing price for the quarter. The quarter-end value of the PRAX stake increased by $227.00 million, a figure that includes both the impact of trading and price movement.

What else to know

• Top holdings after the filing:
  • NASDAQ:PRAX: $280.00 million (12.9% of AUM)
  • NASDAQ:BBOT: $223.84 million (12.7% of AUM)
  • NASDAQ:ABVX: $182.05 million (10.3% of AUM)
  • NASDAQ:EYPT: $151.00 million (8.6% of AUM)
  • NASDAQ:RAPP: $91.85 million (5.2% of AUM)
• As of Monday, PRAX shares were priced at $305.00, up a staggering 700% over the past year and well outperforming the S&P 500’s roughly 19% gain in the same period.

Company overview

Company snapshot

• Praxis Precision Medicines develops clinical-stage therapies for central nervous system disorders, with lead candidates targeting major depressive disorder, perimenopausal depression, essential tremor, and severe epilepsy.
• The firm operates a research-driven biopharmaceutical model, advancing proprietary drug candidates through clinical trials and entering into multiple license and collaboration agreements.
• It targets patients with neurological and psychiatric conditions, as well as healthcare providers and partners in the biotechnology and pharmaceutical sectors.

Praxis Precision Medicines is a Boston-based biotechnology company focused on developing innovative therapies for neurological disorders characterized by neuronal imbalance. The company leverages a diversified pipeline of small molecules and antisense oligonucleotides, supported by strategic partnerships and licensing agreements. Its clinical-stage assets and specialized focus position it to address significant unmet medical needs in central nervous system therapeutics.

What this transaction means for investors

When a biotech stock has such a staggering surge in a single year, trimming a position can be less about losing conviction and more about managing risk during a dramatic run.

Praxis Precision Medicines has become one of the standout performers in the neuroscience biotech space. The company is advancing multiple late-stage therapies targeting neurological disorders such as essential tremor and severe epilepsy. Two of its most advanced programs, ulixacaltamide and relutrigine, have already gotten regulatory review after the company submitted new drug applications to the FDA, positioning Praxis for a potential transition from a development-stage biotech to a commercial drug maker.

Financially, the company appears well capitalized for that transition. Praxis finished 2025 with roughly $926 million in cash and investments and strengthened its balance sheet further with a $621 million public offering early in January, providing enough runway to fund operations into 2028, management says.

Within the broader portfolio, Praxis represents the fund’s largest holding, ahead of other biotech bets such as Abivax and EyePoint Pharmaceutical and certainly suggesting Cormorant believes there could be further upside.

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.