Biotech Stock Still Up 700% Despite 30% Drop This Year as One Fund Discloses $9 Million Exit

On February 17, 2026, 5AM Venture Management reported selling its entire stake in Praxis Precision Medicines (NASDAQ:PRAX), an estimated $9.01 million trade based on last-disclosed position values.

According to a Securities and Exchange Commission (SEC) filing dated February 17, 2026, 5AM Venture Management sold its 170,000 shares of Praxis Precision Medicines. The fund now reports no position in PRAX, and the total quarter-end valuation for this holding was reduced by $9.01 million as a result.

• Top holdings after the filing:

  • NASDAQ:TRDA: $41.70 million (13.1% of AUM)

  • NASDAQ:CAMP: $35.98 million (11.3% of AUM)

  • NASDAQ:TYRA: $27.06 million (8.5% of AUM)

  • NASDAQ:VRDN: $22.92 million (7.2% of AUM)

  • NASDAQ:PHVS: $22.13 million (7.0% of AUM)

• As of Wednesday, shares of Praxis Precision Medicines were priced at $291.70, up nearly 700% over the past year and vastly outperforming the S&P 500’s roughly 19% gain in the same period.

• Praxis develops clinical-stage therapies targeting central nervous system disorders, with lead candidates including PRAX-114 for depression and PRAX-944 for essential tremor

• The firm operates a biotechnology business model focused on research, development, and out-licensing or commercialization of proprietary drug candidates

• It targets patients with neurological and psychiatric conditions, including major depressive disorder, perimenopausal depression, essential tremor, and rare epilepsies

Praxis Precision Medicines is a Boston-based clinical-stage biopharmaceutical company specializing in therapies for neurological disorders characterized by neuronal imbalance. The company leverages a pipeline of small molecules and antisense oligonucleotides aimed at high unmet medical needs in central nervous system indications.

Praxis has delivered one of the more explosive runs in biotech, but the underlying story is still early. The company is transitioning from a clinical-stage platform into a potential commercial player, with two NDA submissions already filed and multiple late-stage programs approaching key readouts. That kind of pipeline depth is what drove the nearly 700% surge.

But the financials tell the other side. The company generated no meaningful revenue and posted a net loss of about $303 million for the year, with research spending ramping aggressively as it pushes multiple programs forward. At the same time, it ended the year with roughly $926 million in cash and raised another $621 million in early 2026, giving it runway into 2028.

Placed alongside other holdings that lean heavily into clinical-stage biotech, this was one of several high-risk, high-upside bets. The difference here is timing. Shares have already given back about 30% since the quarter ended, suggesting the market is starting to price in execution risk rather than just pipeline potential, and that’s perhaps what 5AM had in mind with this sale.