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Baird said it believes the recent Phase 2 study failure for Jazz Pharmaceuticals’ (JAZZ) drug suvecaltamide has favorable readthrough to Praxis Precision Medicines’ (NASDAQ:PRAX) drug ulixacaltamide in the treatment of essential tremor.
The investment firm said Jazz’s data has minimal impact on the probability of success for Praxis’s Phase 3 study of ulixacaltamide, which is expected to have a readout by year’s end.
“The favorable trend on the primary endpoint seen in the high dose arm of JAZZ’s Phase 2b trial was largely driven by TETRAS-ADL, which is the primary endpoint of PRAX’s Phase 3 trial,” Baird said in its note.
Baird also noted that while the placebo effect in Jazz’s study was larger than expected, Praxis has made efforts to prevent this.
“The competitive landscape for PRAX in essential tremor has been meaningfully improved with this setback to PRAX’s closest competitor in this space,” Baird added.
Baird has an outperform rating on Praxis with a price target of $117.