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On Thursday, RBC Capital analysts maintained an Outperform rating on Edgewise Therapeutics stock, with a price target of $48.00, representing significant upside from the current price of $14.27. According to InvestingPro data, analyst targets range from $14 to $51, with five analysts recently revising earnings estimates upward. The analysts expressed confidence in the potential of sevasemten, a drug designed for Becker muscular dystrophy (BMD), to be effective, regardless of whether it receives accelerated approval from the FDA.
The analysts noted that they have received numerous inquiries from investors regarding the possibility of accelerated approval for sevasemten. Despite their belief in the drug’s benefits for BMD patients, they consider accelerated approval unlikely, anticipating a launch in 2028. However, they acknowledged the possibility of a quicker market entry. InvestingPro analysis shows the company maintains strong financial health with a current ratio of 21 and more cash than debt on its balance sheet, providing runway for development.
Investor sentiment on dystrophy programs is described as mixed, with balanced expectations ahead of the FDA’s regulatory update, which is expected soon. The analysts foresee limited downside of approximately 5% if accelerated approval is not granted.
Conversely, should the FDA decide on an accelerated path, the analysts project a potential upside of up to 30% for Edgewise Therapeutics stock.
In other recent news, Edgewise Therapeutics reported its first quarter 2025 financial results, which aligned with analyst expectations. The company posted a net loss of $40.8 million, or $0.43 per share, consistent with the consensus estimate. This reflects a slight increase from the previous quarter’s net loss of $39.7 million, or $0.42 per share. Research and development expenses rose marginally to $36.8 million, attributed to higher personnel costs and increased clinical development activities. General and administrative expenses remained steady at $9.2 million for the quarter. Edgewise bolstered its financial position with a $200 million stock offering, netting approximately $188 million, which increased its pro-forma cash balance to over $624 million. The company also highlighted progress in its skeletal and cardiac muscle programs, with positive results from the CIRRUS-HCM study. Looking ahead, Edgewise plans to release data from two Phase 2 trials for its Duchenne muscular dystrophy treatment in the second quarter of 2025.
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