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On Friday, Truist Securities expressed continued confidence in Edgewise Therapeutics (NASDAQ:EWTX), maintaining a Buy rating and a $50.00 price target for the company’s stock. Currently trading at $24.05, EWTX has analyst targets ranging from $30 to $56, with InvestingPro data showing strong analyst consensus recommendations despite recent earnings forecast revisions. Truist anticipates the release of Phase 2 data by the end of March 2025, which will evaluate EDG-7500 in patients with Hypertrophic Cardiomyopathy (HCM). The upcoming data is expected to provide insights from the multiple ascending dose (MAD) portion of the study, including various dosages and timepoints up to 28 days. Key metrics to be observed are the left ventricular ejection fraction (LVEF), left ventricular outflow tract gradient (LVOT-G), biomarkers, and functional changes.
The firm’s analysis suggests that a greater than 25% improvement in LVOT-G and NT-proBNP levels, along with better than current medical interventions (CMIs) improvements in New York Heart Association (NYHA) classification and Kansas City Cardiomyopathy Questionnaire (KCCQ) scores, would be considered great data. According to InvestingPro, EWTX maintains a strong financial position with more cash than debt and a robust current ratio of 19.93, providing ample runway for clinical development. Get access to 7 more exclusive ProTips and comprehensive financial analysis with an InvestingPro subscription. This level of efficacy would also need to be differentiated from CMIs in terms of LVEF.
Conversely, good data, characterized by a 10-25% upside, would align with efficacy comparable to CMIs and differentiation based on LVEF. However, Truist Securities cautions that if the upcoming results show EDG-7500 to be less effective than CMIs, or if there are concerns regarding LVEF excursions, the stock could potentially see a decline of 20-35%.
Investors and stakeholders are keenly awaiting the data, as it will provide a clearer picture of EDG-7500’s potential in treating HCM, a condition where heart muscle becomes abnormally thick, making it harder for the heart to pump blood. The results are significant for Edgewise Therapeutics, with its $2.29 billion market capitalization, as they could validate the therapeutic efficacy and safety of EDG-7500 and potentially influence the company’s stock performance. InvestingPro’s comprehensive analysis, including detailed Fair Value calculations and financial health scores, can help investors make informed decisions about EWTX’s potential. Access the full Pro Research Report, available for over 1,400 US stocks, for deep-dive analysis and expert insights.
In other recent news, Edgewise Therapeutics has been the focus of several analyst firms and company developments. Piper Sandler reiterated an Overweight rating with a $51 price target, emphasizing upcoming milestones such as the release of 28-day EDG-7500 data for hypertrophic cardiomyopathy expected by the end of March. Scotiabank (TSX:BNS) initiated coverage with a Sector Outperform rating and a $50 price target, citing the potential for Edgewise’s drug candidates to achieve significant sales as they move towards commercialization. JPMorgan adjusted their price target for Edgewise Therapeutics to $45, maintaining an Overweight rating and highlighting the firm’s optimism for the ongoing phase 2 CIRRUS-HCM study results.
In terms of corporate changes, Edgewise Therapeutics announced the promotion of Behrad Derakhshan, Ph.D., to Chief Operating Officer, effective January 2025, as part of a planned leadership transition. Additionally, Robert Blaustein, M.D., Ph.D., has joined as Chief Development Officer, bringing extensive experience in cardiovascular drug development from his tenure at Merck (NSE:PROR). These executive appointments aim to strengthen the company’s late-stage clinical development efforts. Edgewise Therapeutics continues to focus on advancing its pipeline of therapies for serious muscle diseases, including key products in late-stage clinical trials for muscular dystrophies.
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