BOULDER, Colo. - Edgewise Therapeutics, Inc. (NASDAQ: EWTX), a biopharmaceutical company focused on muscle diseases, has announced the pricing of its public stock offering. The company is offering 21,818,182 shares at $11.00 per share, aiming for gross proceeds of about $240 million. The expected closing date of the offering is Monday, subject to customary conditions.
The capital raised will fund key initiatives, including the potential U.S. commercial launch of EDG-5506 for Becker muscular dystrophy, advancing a Phase 3 trial for Duchenne muscular dystrophy, completing Phase 2 trials for EDG-7500 in hypertrophic cardiomyopathy, and furthering ongoing research and development. The offering follows a Registration Statement on Form S-3 filed with the U.S. Securities and Exchange Commission (SEC), which is now effective.
Investors participating in the offering include new backers RA Capital Management, TCGX, and Venrock Healthcare Capital Partners, alongside existing investors such as Cormorant Asset Management, Frazier Life Sciences, and others. Leerink Partners and Wedbush PacGrow are managing the offering as joint book-running managers.
Edgewise Therapeutics is known for developing first-in-class therapeutics for muscular dystrophies and serious cardiac conditions. Its lead candidate, EDG-5506, is in clinical trials for several muscular dystrophies, while EDG-7500, currently in Phase 1, targets hypertrophic cardiomyopathy and other cardiac dysfunctions.
The information in this article is based on a press release statement from Edgewise Therapeutics.
InvestingPro Insights
As Edgewise Therapeutics (NASDAQ: EWTX) navigates through a critical phase with its public stock offering, investors are closely monitoring the company's financial health and market performance. With a market cap of approximately $614.94 million and a notable cash position that surpasses its debt, Edgewise exhibits a level of financial stability that could be reassuring to shareholders. This is particularly relevant as the company embarks on funding key initiatives for its muscle disease treatments.
An InvestingPro Tip highlights that Edgewise holds more cash than debt on its balance sheet, which is a positive sign for investors looking for companies with a solid financial footing, especially when considering the significant R&D expenditures ahead. However, it is important to note that two analysts have revised their earnings expectations downwards for the upcoming period, signaling potential concerns about the company's near-term profitability.
From a performance standpoint, Edgewise has demonstrated a strong return over the last three months with a 31.66% price total return, and an even more impressive six-month price total return of 35.52%. Yet, the company's stock has experienced a decline of 11.43% year-to-date, reflecting the volatile nature of biotech investments. Investors should also be aware that the company does not pay a dividend, which may influence the investment strategy for those seeking regular income.
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