Praxis says its depression drug failed a Phase 2/3 clinical trial, will reduce workforce

Praxis Precision Medicines Inc. said Monday that its experimental depression drug failed in a Phase 2/3 clinical trial. The company’s stock was halted in premarket trading. Praxis said the drug, PRAX-114, did not meet the primary or secondary endpoints for the study. “We are surprised and disappointed in the Aria Study results,” Praxis CEO Marcio Souza said in a news release. The company said it plans to reduce the size of the workforce as a result of the study’s findings and that it now has a cash runway into 2024. Praxis shares are down 56.4% so far this year, while the broader S&P 500 has declined 13.8%.

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