Praxis Precision Medicines (PRAX) investor relations material

Portfolio overview and growth strategy

• Manages a royalty portfolio of over 100 assets, with about 30 commercial and 12 key growth drivers, generating over $200 million in annual cash flows.

• Recent acquisition of XOMA will nearly double the portfolio, adding seven commercial and 14 late-stage assets, targeting $300 million in cash flow.

• Investment pace is about $200 million per year, with typical deal sizes ranging from $20 million to $60 million to ensure diversification.

• Focuses on late-stage clinical and commercial assets with high unmet clinical need, acting as a passive capital provider.

• Five-year guidance projects 20% annual growth from the commercial portfolio, with additional growth from pre-approval assets and new deals.

Team, operations, and financials

• Operates with fewer than 50 employees, leveraging industry infrastructure and partnerships to maintain low operating expenses.

• Diverse investment team with backgrounds in private credit, growth equity, scientific, and commercial expertise, recently expanded to accelerate deal flow.

• Operating expenses are about $45 million, growing at inflation, with profit margins above 80% and strong operating leverage.

• Maintains a $1 billion cash position and access to a revolving credit facility, supporting ongoing investments and portfolio expansion.

Asset management and commercial drivers

• Portfolio management focuses on passive contractual rights, with ongoing reprioritization and follow-on investments in high-conviction assets.

• Key commercial growth drivers include FILSPARI and OHTUVAYRE, with FILSPARI recently approved for FSGS and a 9% royalty.

• Palvella's QTORIN rapamycin and lasofoxifene are highlighted as underappreciated late-stage assets with significant royalty potential.

• Manages seasonality and milestone-related revenue variability by focusing on durable, high-value assets protected by strong IP.