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On Monday, Piper Sandler reiterated an Overweight rating and a $51.00 price target for Edgewise Therapeutics (NASDAQ:EWTX) stock, which has shown remarkable momentum with a 62% gain over the past six months. According to InvestingPro data, the stock currently trades near $27.69, suggesting significant upside potential to analyst targets ranging from $30 to $51. The firm’s analysts highlighted a series of upcoming milestones for the company, which they believe present a compelling buying opportunity for investors. They emphasized the near-term release of 28-day EDG-7500 data, expected around the end of March, which will include results for two to three doses tested on at least 10 patients with obstructive hypertrophic cardiomyopathy (oHCM) and 10 with non-obstructive HCM (nHCM).
The forthcoming data is anticipated to cover a range of measures, including left ventricular outflow tract gradient (LVOT-G) for oHCM patients, NT-proBNP levels, left ventricular ejection fraction (LVEF), safety, E/e’ ratio, Kansas City Cardiomyopathy Questionnaire (KCCQ) scores, and New York Heart Association (NYHA) Class. Piper Sandler expressed confidence in the proof of concept (PoS) for EDG-7500, particularly looking for consistent benefits in oHCM patients and an established effect in nHCM patients, without any decrease in LVEF, which would support the absence of a need for echocardiogram (ECHO) Risk Evaluation and Mitigation Strategies (REMS).
Additionally, the firm pointed to the 12-week data expected in the fourth quarter of 2025, which should provide insights into dose optimization based on efficacy, with NT-proBNP potentially serving as a marker for dose adjustment. InvestingPro analysis reveals the company maintains a strong financial position with a current ratio of 19.93 and minimal debt, providing ample runway for its clinical development programs. Investor interest is also high in another of Edgewise’s products, sevasemten, for which the company plans to meet with the FDA in the second quarter of 2025 to discuss a potential accelerated-approval filing for Becker muscular dystrophy (BMD), based on strong evidence and safety data, as well as recent draft guidance.
Edgewise Therapeutics is also expected to release Phase 2 data from its LYNX/FOX trial for Duchenne muscular dystrophy (DMD) in the second quarter of 2025 and may share thoughts on Phase 3 development. Piper Sandler’s analysts remain bullish on Edgewise Therapeutics, citing the multiple key data readouts anticipated in 2025 as the basis for their optimism. While the company currently shows negative earnings with an EBITDA of -$156.76M, InvestingPro analysis indicates a "Fair" overall financial health score. For deeper insights into Edgewise Therapeutics’ valuation and growth prospects, investors can access the comprehensive Pro Research Report, available exclusively to InvestingPro subscribers, along with 11 additional ProTips and extensive financial metrics.
In other recent news, Edgewise Therapeutics has been the focus of several significant developments. Scotiabank (TSX:BNS) initiated coverage with a Sector Outperform rating, setting a price target of $50 per share, highlighting the commercial potential of Edgewise’s pipeline products, including sevasemten and EDG-7500. JPMorgan also raised its price target to $45, maintaining an Overweight rating due to the promising outlook for the company’s ongoing phase 2 CIRRUS-HCM study. Meanwhile, Stifel initiated coverage with a Hold rating and a $30 price target, citing potential risks and uncertainties associated with Edgewise’s clinical assets.
Additionally, Edgewise Therapeutics announced changes in its executive team, promoting Behrad Derakhshan, Ph.D., to Chief Operating Officer and appointing Robert Blaustein, M.D., Ph.D., as Chief Development Officer. Dr. Derakhshan’s promotion comes with a salary increase and reflects the company’s strategic preparation for upcoming milestones. Dr. Blaustein’s appointment is aimed at advancing the development of EDG-7500 and other cardiovascular projects.
These leadership changes align with Edgewise’s focus on advancing therapies for serious muscle diseases. The company remains committed to its late-stage clinical trials for Becker and Duchenne muscular dystrophies, leveraging its expertise in muscle physiology. Investors are closely monitoring these developments as the company progresses towards commercial readiness and potential market success.
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