RBC Capital reiterates outperform rating on Edgewise stock amid BMD progress

Published 27/06/2025, 16:26
RBC Capital reiterates outperform rating on Edgewise stock amid BMD progress

Investing.com - RBC Capital maintained its Outperform rating and $48.00 price target on Edgewise Therapeutics (NASDAQ:EWTX) stock on Friday, highlighting the company’s progress with its sevasemten drug candidate. The $1.39 billion market cap company currently trades at $13.25, with analyst targets ranging from $14 to $51.

The research firm expressed continued bullishness on sevasemten’s potential in Becker Muscular Dystrophy (BMD), noting a clear registrational path to become the first-ever approved therapy for the condition, though without accelerated approval. According to InvestingPro data, the company maintains a strong financial position with more cash than debt and a remarkable current ratio of 20.99x.

RBC Capital pointed to sevasemten demonstrating sustained disease stabilization in BMD patients for up to three years in the MESA study, while management remains confident the drug is active in Duchenne Muscular Dystrophy (DMD), though phase III plans are still being finalized.

The firm acknowledged some expected downside from the update’s optics but maintained its positive outlook on sevasemten’s potential to succeed in BMD with optionality in DMD, citing clean safety and signals of efficacy.

RBC Capital recommended buying on weakness, citing high probability of success for the GRAND CANYON trial in 2026 and expressing conviction in the parallel hypertrophic cardiomyopathy (HCM) development program for the company’s ’7500 drug candidate. With the stock down over 50% in the past six months, InvestingPro subscribers can access 8 additional key insights and a comprehensive Pro Research Report to make informed investment decisions.

In other recent news, Edgewise Therapeutics has been in the spotlight due to developments surrounding its drug sevasemten, aimed at treating muscular dystrophies. The company reported that the FDA found its CANYON trial data insufficient for accelerated approval for Becker muscular dystrophy, suggesting a traditional approval pathway instead. Despite this setback, Edgewise highlighted positive results from its MESA open-label extension trial, showing sustained disease stabilization for up to three years in patients. The FDA has expressed support for the ongoing GRAND CANYON pivotal trial, with results expected in late 2026. Meanwhile, Edgewise also announced encouraging data from its Phase 2 Duchenne muscular dystrophy trials, identifying an optimal dose for future studies. Analyst firms have weighed in on these developments, with Piper Sandler maintaining an Overweight rating and RBC Capital keeping an Outperform rating on Edgewise stock. Piper Sandler expressed optimism about potential FDA approval for sevasemten in BMD by 2025, while RBC Capital analysts believe in the drug’s benefits but view accelerated approval as unlikely. Both firms see potential for significant market impact depending on regulatory outcomes.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers
© 2007-2025 - Fusion Media Limited. All Rights Reserved.