Praxis Precision Medicines experienced a significant market setback Friday as its shares plummeted nearly 40% following news that independent trial monitors recommended halting its Phase 3 study of ulixacaltamide, the company's leading drug candidate for essential tremor treatment.
The monitoring committee indicated that the trial was "unlikely to meet the primary efficacy endpoint under the parameters set by the statistical model." Despite this recommendation and expressing surprise and disappointment at the findings, Praxis has opted to continue both this study and another ongoing trial to obtain complete results.
Cost-Cutting Measures at Bristol Myers Squibb
In a parallel development, pharmaceutical giant Bristol Myers Squibb (BMS) has announced a new wave of layoffs affecting 223 employees at its Lawrence Township, New Jersey facility. These cuts, scheduled between May and August, follow an earlier announcement this month of 67 job eliminations in New Jersey.
The workforce reduction is part of BMS's broader restructuring initiative announced last year, which aims to achieve $2 billion in annual cost savings by the end of 2027. A company spokesperson confirmed that affected employees have been notified, with the WARN notice dates indicating their final employment days.
Strategic Partnership in Molecular Glue Development
In more promising industry news, Eli Lilly has entered into a strategic collaboration with Magnet Biomedicine to develop molecular glue drugs. The partnership includes an initial package of up to $40 million in upfront payments and near-term milestones, along with an equity investment in Magnet.
The agreement could potentially reach $1.25 billion if certain R&D and commercialization milestones are achieved. Magnet's innovative molecular glue technology works by forcing protein pairs together to modify or eliminate harmful proteins. According to Magnet CEO Brian Safina, the technology shows particular promise in providing tissue specificity and targeting traditionally difficult-to-drug proteins in oncology and immunology applications.
