An investigation on behalf of investors of Praxis Precision Medicines, Inc. (NASDAQ: PRAX) shares over potential securities laws violations by Praxis Precision Medicines, Inc. and certain of its directors and officers in connection with certain financial statements was announced.

The investigation by a law firm focuses on possible claims on behalf of purchasers of the securities of Praxis Precision Medicines, Inc. (NASDAQ: PRAX) concerning whether a series of statements by Praxis Precision Medicines, Inc. regarding its business, its prospects and its operations were materially false and misleading at the time they were made.

Cambridge, MA based Praxis Precision Medicines, Inc., a clinical-stage biopharmaceutical company, develops therapies for central nervous system disorders characterized by neuronal imbalance. On November 9, 2020, Praxis Precision Medicines, Inc. announced receipt of 'a response from the U.S. Food and Drug Administration ('FDA') on the Investigational New Drug ('IND') submission for PRAX-114 for the treatment of major depressive disorder ('MDD').' Specifically, Praxis Precision Medicines, Inc. advised investors that '[a]t the end of the 30-day IND review period, the FDA notified the Company that the IND has been placed on full clinical hold. The FDA has not provided any reason for the clinical hold.'

Shares of Praxis Precision Medicines, Inc. (NASDAQ: PRAX) declined from $38.42 per share on November 6, 2020 to as low as $28.03 per share on November 11, 2020.