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BOULDER, Colo. - Edgewise Therapeutics, Inc. (NASDAQ: EWTX), a biopharmaceutical company focused on muscle disease treatments with a current market capitalization of $1.9 billion, announced an underwritten public offering of its common stock. The company has priced 9,935,419 shares at $20.13 per share, aiming to raise approximately $200 million in gross proceeds. The offering is slated to close on April 3, 2025, pending customary closing conditions. According to InvestingPro data, the stock is currently trading near its Fair Value, with analysts setting price targets ranging from $30 to $56.
Major investors participating in the offering include Braidwell LP, Cormorant Asset Management, and several other funds. Leerink Partners, Piper Sandler, Guggenheim Securities, and Truist Securities are managing the offering as joint book-running managers. InvestingPro analysis shows the company maintains a strong financial position with a current ratio of 19.9x and minimal debt, suggesting robust liquidity to support its development programs.
The proceeds from this offering are intended to fund several key initiatives, including the potential commercial launch of sevasemten for Becker muscular dystrophy, subject to approval, and to advance a Phase 3 trial of sevasemten for Duchenne muscular dystrophy. Additionally, funds will support Phase 3 trials of EDG-7500 for hypertrophic cardiomyopathy and other ongoing research and development programs. The company also plans to allocate funds for working capital and general corporate purposes. With an overall Financial Health Score of ’FAIR’ from InvestingPro, the company appears well-positioned to execute its development strategy, though investors should note that analysts expect continued negative earnings in the near term.
Edgewise’s product candidates include sevasemten, an orally administered skeletal myosin inhibitor, and EDG-7500, a novel cardiac sarcomere modulator. Both are in late-stage clinical trials targeting muscular dystrophies and serious cardiac conditions, respectively.
The offering is made pursuant to an effective Registration Statement on Form S-3ASR filed with the U.S. Securities and Exchange Commission (SEC). Relevant documents, such as the prospectus supplement and the accompanying prospectus, will be filed with the SEC and can be accessed on their website.
This press release does not constitute an offer to sell or a solicitation of an offer to buy securities, and sales will not be conducted in jurisdictions where such offer, solicitation, or sale would be unlawful without registration or qualification under the securities laws of such jurisdictions.
The information in this article is based on a press release statement from Edgewise Therapeutics.
In other recent news, Edgewise Therapeutics announced positive results from its Phase 2 trial of EDG-7500, a drug candidate for treating hypertrophic cardiomyopathy (HCM). The trial showed significant reductions in left ventricular outflow tract gradients and improvements in cardiac biomarkers and diastolic function, with no adverse impact on systolic function. Truist Securities maintained a Buy rating for Edgewise Therapeutics, with a $50.00 price target, highlighting the anticipated release of further Phase 2 data by March 2025. Piper Sandler also reiterated an Overweight rating with a $51.00 price target, emphasizing upcoming milestones, including the release of 28-day data for EDG-7500. Scotiabank initiated coverage with a Sector Outperform rating and a $50.00 price target, citing promising early data and the company’s progress towards commercialization. JPMorgan raised its price target for Edgewise Therapeutics from $44.00 to $45.00, maintaining an Overweight rating and expressing optimism about the ongoing CIRRUS-HCM study. These developments reflect the growing confidence among analysts in Edgewise Therapeutics’ potential to advance its product pipeline and achieve significant growth.
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