Edgewise Therapeutics (EWTX) AI Stock Analysis

• Market Cap: $1.65B
• Dividend Yield: N/A
• Average Volume (3M): 2.40M
• Price to Earnings (P/E): ―
• Beta (1Y): 2.36
• Revenue Growth: N/A
• EPS Growth: 7.97%
• Country: US
• Employees: 110
• Sector: Healthcare
• Sector Strength: 69
• Industry: Biotechnology
• EPS (TTM): -1.45
• Shares Outstanding: 105,140,700
• 10 Day Avg. Volume: 1,221,424
• 30 Day Avg. Volume: 2,404,911
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 0.00
• Price to Cash Flow (P/CF): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: 1.25
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $43.88
• Price Target Upside: 183.83% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 9

Edgewise Therapeutics' overall score reflects significant risks due to its pre-revenue stage and increasing losses. Positive corporate events, including substantial fundraising and promising trial results, offer growth potential. However, the bearish technical indicators and valuation challenges highlight the stock's high-risk profile typical of early-stage biotech companies.

Positive Factors

Clinical Efficacy

EDG-7500 is showing encouraging and potentially differentiated efficacy and safety signals in a diverse patient population.

Investor Sentiment

The recent weakness in the stock is seen as an attractive buying opportunity for those willing to be patient.

Market Position

Edgewise Therapeutics is recommended with an Overweight rating.

Negative Factors

Clinical Risk

Some patients in the study had missteps in patient selection, leading to higher risk of atrial fibrillation due to comorbidities.

Stock Pressure

EWTX shares have been under pressure since it has been suggested that patients in the CIRRUS Part B & C study of EDG-7500 dosed for 28 days in obstructive & non-obstructive hypertrophic cardiomyopathy could have high rates of atrial fibrillation.

Edgewise Therapeutics Business Overview & Revenue Model

Company Description

Edgewise Therapeutics, Inc., a biopharmaceutical company, develops small molecule therapies for musculoskeletal diseases. The Company's lead product candidate, EDG-5506, is an orally administered small molecule designed to address the root cause of dystrophinopathies including Duchenne muscular dystrophy and Becker muscular dystrophy which has completed Phase 1 clinical trial. It develops a pipeline of precision medicine product candidates that target key muscle proteins and modulators to address genetically defined muscle disorders. Edgewise Therapeutics, Inc. was incorporated in 2017 and is headquartered in Boulder, Colorado.

How the Company Makes Money

Edgewise Therapeutics generates revenue primarily through the development and commercialization of its proprietary drug candidates. The company makes money by conducting clinical trials, gaining regulatory approvals, and ultimately marketing its therapies to healthcare providers and patients. Revenue streams include upfront payments, milestone payments, and royalties from licensing agreements with strategic partners. Edgewise may also engage in collaborations with larger pharmaceutical companies to co-develop or co-market its products, which can provide additional funding and resources to support its research and development efforts. However, as a clinical-stage company, Edgewise may primarily rely on funding from investors and strategic partnerships until its products reach the market.

Edgewise Therapeutics Financial Statement Overview

Summary

Edgewise Therapeutics is in a typical pre-revenue biotech phase, focusing heavily on R&D with no revenue streams. The company's financial health is dependent on its cash reserves and ability to raise capital. While current liquidity is adequate, the lack of revenue generation and increasing losses are critical risks that need addressing for long-term viability.

Income Statement

Edgewise Therapeutics consistently reports zero revenue, indicating a pre-commercial stage typical in biotechnology. The company has a negative net income, which is expected given significant R&D expenses. However, the increasing net losses over the years raise concerns about financial sustainability without sufficient revenue generation.

Balance Sheet

The company has a strong cash position with substantial cash and cash equivalents, which is crucial for ongoing R&D activities. However, the negative equity in earlier periods and fluctuating debt levels suggest potential financial instability. The recent improvement in equity reflects successful financing rounds, but long-term sustainability depends on revenue growth.

Cash Flow

Negative operating and free cash flows indicate that Edgewise Therapeutics is reliant on external financing to fund its operations. The growth in financing cash flow shows successful capital raising, but persistent negative cash flows highlight the risk of future cash constraints without revenue generation.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
0.00	0.00	0.00	0.00	0.00
	Gross Profit
0.00	-1.73M	-538.00K	-272.00K	-185.00K
	EBIT
-158.83M	-114.36M	-22.08M	-43.22M	-17.19M
	EBITDA
-158.83M	-112.81M	-67.10M	-42.94M	-17.01M
	Net Income Common Stockholders
-133.81M	-100.16M	-15.40M	-42.14M	-17.05M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
470.17M	318.39M	351.95M	280.79M	129.09M
	Total Assets
486.82M	340.04M	367.10M	285.23M	131.14M
	Total Debt
4.74M	5.41M	4.41M	0.00	160.21M
	Net Debt
-36.93M	-80.68M	-347.54M	-280.79M	55.30M
	Total Liabilities
27.60M	21.20M	20.39M	10.85M	164.56M
	Stockholders Equity
459.22M	318.83M	346.72M	274.38M	-33.42M
Cash Flow		Free Cash Flow
-110.34M	-97.69M	-58.18M	-34.17M	-14.84M
	Operating Cash Flow
-109.03M	-91.95M	-52.63M	-33.51M	-14.63M
	Investing Cash Flow
-184.66M	102.89M	-70.58M	-242.23M	-24.38M
	Financing Cash Flow
249.25M	53.17M	129.64M	186.38M	120.28M

Edgewise Therapeutics Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 15.46
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For EWTX, the sentiment is Neutral. The current price of 15.46 is above the 20-day moving average (MA) of 13.72, below the 50-day MA of 20.71, and below the 200-day MA of 24.98, indicating a neutral trend. The MACD of -1.60 indicates Negative momentum. The RSI at 45.04 is Neutral, neither overbought nor oversold. The STOCH value of 91.37 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for EWTX.

Edgewise Therapeutics Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
IMCR	62 Neutral	$1.53B	―	-13.92%	―	24.19%	10.51%
SPRY	59 Neutral	$1.39B	184.35	3.28%	―	297063.33%	―
ARDX	57 Neutral	$1.28B	―	-23.01%	―	168.06%	44.66%
LQDA	54 Neutral	$1.21B	―	-209.35%	―	-19.97%	-37.22%
Sector *	51 Neutral	$5.35B	3.41	-40.83%	2.89%	18.11%	2.60%
TVTX	44 Neutral	$1.72B	―	-246.75%	―	17.27%	10.01%
EWTX	40 Underperform	$1.65B	―	-34.40%	―	―	7.97%

Edgewise Therapeutics Corporate Events

Edgewise Therapeutics Announces $200M Stock Offering

On April 2, 2025, Edgewise Therapeutics announced the pricing of an underwritten registered direct offering of 9,935,419 shares of its common stock at $20.13 per share, expecting to raise approximately $200 million. The proceeds will support the potential U.S. commercial launch of sevasemten for Becker muscular dystrophy, advance Phase 3 trials for Duchenne muscular dystrophy and other cardiac conditions, and fund ongoing research and development programs, positioning the company for significant growth and operational sustainability through 2028.

Edgewise Therapeutics Announces Positive Phase 2 Trial Results

On April 2, 2025, Edgewise Therapeutics announced positive top-line results from its Phase 2 CIRRUS-HCM trial of EDG-7500 in patients with both obstructive and nonobstructive hypertrophic cardiomyopathy. The trial demonstrated that EDG-7500 significantly reduced left ventricular outflow tract gradients and improved cardiac biomarkers without affecting systolic function, indicating its potential as a significant advancement for HCM treatment. The findings suggest a promising future for EDG-7500, with plans for further optimization and a Phase 3 trial in 2026, potentially impacting patients and clinicians by providing a new therapeutic option.