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On Wednesday, Morgan Stanley (NYSE:MS) reaffirmed its Overweight rating on Cytokinetics (NASDAQ:CYTK) with a $67.00 price target. The firm’s analyst, Maxwell Skor, highlighted the recent announcement by Edgewise Therapeutics regarding their Phase 2 CIRRUS-HCM trial, which tested EDG-7500 in patients with hypertrophic cardiomyopathy (HCM). Edgewise’s stock has fallen nearly 10% in the past week, currently trading at $14.94, significantly below its 52-week high of $38.12. According to InvestingPro data, the company maintains a FAIR financial health score of 2.11, with analyst price targets ranging from $30 to $56. Although Edgewise Therapeutics is not covered by Morgan Stanley, the results have implications for Cytokinetics’ drug, aficamten.
Edgewise’s trial results have garnered attention due to the potential comparison with Cytokinetics’ aficamten, a cardiac myosin inhibitor (CMI), particularly in light of the safety profiles of both drugs. Edgewise reported that in their trial, some patients developed new onset atrial fibrillation, with two cases being classified as serious adverse events (SAEs).
Cytokinetics’ aficamten, however, demonstrated no significant difference in atrial fibrillation occurrence compared to placebo. This was concluded from an integrated safety analysis across multiple trials: REDWOOD-HCM, SEQUOIA-HCM, and FOREST-HCM. The analysis, referred to as Exhibit 1 in the context, suggests a differentiated safety profile for aficamten.
The analyst expects Cytokinetics’ stock to experience an increase of over 5% based on the perceived safety advantages of aficamten over competitors like Edgewise’s EDG-7500. The anticipation of these results has put a spotlight on the potential market performance of Cytokinetics, especially in the area of HCM treatment.
Morgan Stanley’s position reflects a positive outlook on Cytokinetics, especially as the market responds to comparative drug safety profiles. The firm’s maintained price target and rating suggest confidence in Cytokinetics’ ongoing developments and its implications for the company’s stock value. With Edgewise’s next earnings report due on May 8, investors seeking deeper insights can access comprehensive analysis through InvestingPro, which offers exclusive financial metrics and expert analysis for over 1,400 US stocks.
In other recent news, Cytokinetics has garnered attention following the release of competitor Edgewise Therapeutics’ trial results for their hypertrophic cardiomyopathy (HCM) treatment, EDG-7500. Although Edgewise reported promising efficacy data, the occurrence of serious adverse events, such as atrial fibrillation, has raised safety concerns. This has led analysts like Morgan Stanley’s Maxwell Skor to maintain an Overweight rating on Cytokinetics, citing the safer profile of Cytokinetics’ HCM treatment, aficamten. Meanwhile, RBC analyst Leonid Timashev highlighted the potential for Cytokinetics to leverage its more convenient safety profile to drive significant sales.
Edgewise Therapeutics announced a $200 million stock offering, pricing shares at $20.13 each. The proceeds will fund the potential U.S. commercial launch of sevasemten for Becker muscular dystrophy and advance Phase 3 trials for EDG-7500 in HCM. Despite the stock’s decline following these announcements, Truist Securities maintained a Buy rating on Edgewise, with a $50.00 price target, expressing confidence in the upcoming Phase 2 data. Investors are closely watching these developments, as they could significantly impact the competitive landscape in the biopharmaceutical sector.
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