Praxis Precision Medicines, Inc. (NASDAQ: PRAX) saw its stock plummet 10.18% in pre-market trading on Monday, following the release of its second-quarter 2025 financial results. The biopharmaceutical company, focused on developing treatments for central nervous system disorders, reported mixed results that disappointed investors despite positive clinical trial data.

The company reported a Q2 earnings per share (EPS) of $(3.31), missing the analyst estimate of $(3.25). Operating expenses surged to $76.067 million, significantly higher than the previous year, leading to an operating loss of $76.067 million, which was worse than the expected $73.1 million loss. The net loss for the quarter stood at $71.127 million, also exceeding the estimated $70.4 million loss. Praxis did not recognize any revenue in the quarter, missing the $0.21 million GAAP revenue estimate.

However, it wasn't all negative news for Praxis. The company announced positive results from its RADIANT study of vormatrigine in patients with focal onset seizures. The drug showed a 56.3% median reduction in seizure frequency, with 22% of patients achieving 100% seizure reduction. Additionally, 54% of patients achieved a 50% response in the first week of treatment. These encouraging clinical results were somewhat overshadowed by the financial performance, explaining the complex market reaction. Despite the pre-market plunge, Praxis maintains a strong financial position with cash and investments of approximately $447 million as of June 30, 2025, which the company believes will fund operations into 2028.