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Edgewise Therapeutics
(NASDAQ:EWTX)
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Rating:66Neutral
Price Target:
$49.00
▲(19.98% Upside)
Action:Reiterated
Date:08/06/26
The score is supported most by strong technical uptrend/momentum and a highly positive, balance-sheet-strengthening asset sale. Offsetting these positives are weak financial performance typical of a pre-revenue biotech (large losses and cash burn) and limited valuation support given the negative P/E and no dividend.
Positive Factors
Strengthened balance sheet after asset sale
The sevasemten sale provides a material cash infusion and raises pro forma liquidity, materially reducing refinancing and interest-rate risks. This durable funding improves the company's ability to fully finance EDG-7500 through potential approval and to advance its cardiovascular pipeline without near-term capital raises.
Negative Factors
Pre-commercial with zero revenue
As a pre-revenue biotech, the company lacks product sales and is highly dependent on financing, partnerships, or milestone receipts. Persistent and growing operating losses mean long-term value hinges entirely on clinical success and approvals; trial setbacks would materially impair future cash flow prospects.
Read all positive and negative factors
Positive Factors
Negative Factors
Strengthened balance sheet after asset sale
The sevasemten sale provides a material cash infusion and raises pro forma liquidity, materially reducing refinancing and interest-rate risks. This durable funding improves the company's ability to fully finance EDG-7500 through potential approval and to advance its cardiovascular pipeline without near-term capital raises.
Read all positive factors
Edgewise Therapeutics (EWTX) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$4.73B
Dividend YieldN/A
Average Volume (3M)1.37M
Price to Earnings (P/E)―
Beta (1Y)1.94
Revenue GrowthN/A
EPS Growth-18.88%
CountryUS
Employees154
SectorHealthcare
Sector Strength45
IndustryBiotechnology
Share Statistics
EPS (TTM)-1.85
Shares Outstanding108,604,126
10 Day Avg. Volume859,282
30 Day Avg. Volume1,366,719
Financial Highlights & Ratios
PEG Ratio-1.23
Price to Book (P/B)4.89
Price to Sales (P/S)0.00
P/FCF Ratio-17.76
Enterprise Value/Market Cap<0.01
Enterprise Value/RevenueN/A
Enterprise Value/Gross Profit>-0.01
Enterprise Value/Ebitda>-0.01
Forecast
1Y Price Target
$52.00Price Target Upside27.33% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering12
EPS Forecast (FY)-2.06
Revenue Forecast (FY)N/A
Edgewise Therapeutics Business Overview & Revenue Model
Company Description
Edgewise Therapeutics, Inc. is a biopharmaceutical firm dedicated to developing small-molecule treatments for a range of musculoskeletal disorders. Its leading investigational drug, EDG-5506, is an orally administered compound specifically enginee...
How the Company Makes Money
Edgewise Therapeutics primarily makes money through collaboration and partnership-related income and, to date, not from product sales because it is a clinical-stage company without commercialized therapies. Its revenue model generally consists of ...
Edgewise Therapeutics Financial Statement Overview
Summary
Income Statement
18
Very Negative
Balance Sheet
74
Positive
Cash Flow
28
Negative
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Gross Profit | -590.00K | -2.27M | 0.00 | 0.00 | 0.00 | 0.00 |
| EBITDA | -197.21M | -165.53M | -131.52M | -98.43M | -63.08M | -42.54M |
| Net Income | -197.22M | -167.79M | -133.81M | -100.16M | -67.64M | -42.81M |
Balance Sheet | ||||||
| Total Assets | 479.69M | 552.60M | 486.82M | 340.04M | 367.10M | 285.23M |
| Cash, Cash Equivalents and Short-Term Investments | 460.71M | 530.11M | 470.17M | 318.39M | 351.95M | 280.79M |
| Total Debt | 3.59M | 3.99M | 4.74M | 5.41M | 4.41M | 0.00 |
| Total Liabilities | 31.61M | 30.35M | 27.60M | 21.20M | 20.39M | 10.85M |
| Stockholders Equity | 448.08M | 522.26M | 459.22M | 318.83M | 346.72M | 274.38M |
Cash Flow | ||||||
| Free Cash Flow | -159.62M | -143.82M | -110.34M | -97.69M | -58.18M | -34.17M |
| Operating Cash Flow | -159.42M | -143.82M | -109.03M | -91.95M | -52.63M | -33.51M |
| Investing Cash Flow | 166.40M | -32.79M | -184.66M | 102.89M | -70.58M | -242.23M |
| Financing Cash Flow | 8.72M | 196.09M | 249.25M | 53.17M | 129.64M | 186.38M |
Edgewise Therapeutics Technical Analysis
Positive
40.84
Price Trends
39.50
Positive
36.03
Positive
30.56
Positive
Market Momentum
1.19
Negative
58.95
Neutral
80.59
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For EWTX, the sentiment is Positive. The current price of 40.84 is below the 20-day moving average (MA) of 40.86, above the 50-day MA of 39.50, and above the 200-day MA of 30.56, indicating a bullish trend. The MACD of 1.19 indicates Negative momentum. The RSI at 58.95 is Neutral, neither overbought nor oversold. The STOCH value of 80.59 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for EWTX.
Edgewise Therapeutics Risk Analysis
Edgewise Therapeutics disclosed 86 risk factors in its most recent earnings report. Edgewise Therapeutics reported the most risks in the "Tech & Innovation" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Edgewise Therapeutics Peers Comparison
UnderperformOutperform
Sector (51)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
66 Neutral | $4.73B | -24.10 | -39.01% | ― | ― | -18.88% | |
56 Neutral | $969.02M | -10.01 | -10.79% | ― | 5366.97% | 8.50% | |
55 Neutral | $2.67B | -6.30 | -61.35% | ― | 23220.33% | 13.06% | |
52 Neutral | $2.44B | -10.66 | -67.40% | ― | ― | -5.22% | |
51 Neutral | $7.86B | -0.30 | -43.30% | 2.27% | 22.53% | -2.21% | |
50 Neutral | $2.21B | -3.13 | -866.46% | ― | ― | 39.46% | |
49 Neutral | $2.36B | -5.39 | -74.86% | ― | ― | -85.06% |
* Healthcare Sector Average
EWTX
Edgewise Therapeutics
44.58
31.59
243.19%
VRDN
Viridian Therapeutics
23.06
6.17
36.53%
PHVS
Pharvaris
34.84
14.00
67.18%
VERA
Vera Therapeutics
31.58
11.41
56.57%
JANX
Janux Therapeutics Inc
16.41
-6.26
-27.61%
BHVN
Biohaven Ltd.
14.54
1.13
8.43%
Edgewise Therapeutics Corporate Events
Business Operations and StrategyM&A Transactions
Edgewise Therapeutics Sells Muscular Dystrophy Assets to Servier
Positive
Jul 13, 2026
On July 10, 2026, Edgewise Therapeutics completed the sale of its sevasemten compound and muscular dystrophy business to Servier Pharmaceuticals for $1.55 billion in upfront cash and up to $1.1 billion in milestone payments, for potential total co...
Executive/Board ChangesShareholder Meetings
Edgewise Therapeutics Shareholders Back Board and Governance
Positive
Jun 5, 2026
Edgewise Therapeutics, Inc. held its Annual Meeting of stockholders on June 4, 2026, at which shareholders elected three Class II directors, Laura Brege, Badreddin Edris, Ph.D., and Jonathan Root, M.D., to serve until the 2029 annual meeting. Shar...
Business Operations and StrategyM&A Transactions
Edgewise Therapeutics Sells Sevasemten, Refocuses on Cardiology
Positive
Jun 1, 2026
On June 1, 2026, Edgewise Therapeutics announced a definitive agreement to sell sevasemten and its muscular dystrophy business to Servier for $1.55 billion in upfront cash and up to $1.1 billion in additional milestone payments, for potential tota...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.