Edgewise Therapeutics (EWTX) AI Stock Analysis

• Market Cap: $1.62B
• Dividend Yield: N/A
• Average Volume (3M): 1.04M
• Price to Earnings (P/E): ―
• Beta (1Y): 2.33
• Revenue Growth: N/A
• EPS Growth: 7.97%
• Country: US
• Employees: 117
• Sector: Healthcare
• Sector Strength: 58
• Industry: Biotechnology
• EPS (TTM): -0.43
• Shares Outstanding: 105,200,220
• 10 Day Avg. Volume: 1,052,992
• 30 Day Avg. Volume: 1,042,324
• PEG Ratio: 0.47
• Price to Book (P/B): 1.38
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -8.24
• Enterprise Value/Market Cap: 0.08
• Enterprise Value/Revenue: 29.22
• Enterprise Value/Gross Profit: 250.65
• Enterprise Value/Ebitda: -0.22
• 1Y Price Target: $40.88
• Price Target Upside: 167.36% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 9

• Rating: 40 Underperform
• Price Target: ―

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

The Phase 2 CIRRUS-HCM study results showed deepening efficacy and continued safety for EDG-7500 in hypertrophic cardiomyopathy.

Market Position

Edgewise Therapeutics is recommended with an Overweight rating.

Regulatory Approval

EWTX has continued to gain momentum in BMD and could change hearts, especially if accelerated approval is a viable option.

Negative Factors

Clinical Safety

Adverse events like dizziness, upper respiratory tract infection, and atrial fibrillation were reported, though mostly mild to moderate.

Clinical Trials

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

Regulatory Environment

The likelihood of success for an accelerated approval approach in BMD is about 50/50 given the regulatory and political environment, which has become more uncertain in recent months.

Edgewise Therapeutics Business Overview & Revenue Model

Company Description

Edgewise Therapeutics (EWTX) is a clinical-stage biopharmaceutical company focused on the discovery, development, and commercialization of therapies for rare muscle disorders. The company's primary aim is to address the unmet medical needs of patients with debilitating neuromuscular diseases by leveraging its proprietary drug discovery platform to develop novel, small molecule therapies. Edgewise's lead product candidates target specific genetic mutations and pathways involved in muscle dysfunction, offering potential therapeutic solutions for conditions such as Duchenne muscular dystrophy (DMD) and Becker muscular dystrophy (BMD).

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 with no revenue streams. The company has a strong cash position crucial for R&D, but high and increasing losses are critical risks.

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
TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
0.00	0.00	0.00	0.00	0.00	0.00
	Gross Profit
525.00K	0.00	-1.73M	-538.00K	-272.00K	-185.00K
	EBIT
-170.04M	-158.83M	-114.36M	-22.08M	-43.22M	-17.19M
	EBITDA
-170.51M	-131.52M	-112.81M	-67.10M	-42.94M	-17.01M
	Net Income Common Stockholders
-146.09M	-133.81M	-100.16M	-15.40M	-42.14M	-17.05M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
436.39M	470.17M	318.39M	351.95M	280.79M	129.09M
	Total Assets
454.39M	486.82M	340.04M	367.10M	285.23M	131.14M
	Total Debt
4.56M	4.74M	5.41M	4.41M	0.00	160.21M
	Net Debt
-45.36M	-36.93M	-80.68M	-347.54M	-280.79M	55.30M
	Total Liabilities
24.67M	27.60M	21.20M	20.39M	10.85M	164.56M
	Stockholders Equity
429.72M	459.22M	318.83M	346.72M	274.38M	-33.42M
Cash Flow		Free Cash Flow
-119.36M	-110.34M	-97.69M	-58.18M	-34.17M	-14.84M
	Operating Cash Flow
-118.30M	-109.03M	-91.95M	-52.63M	-33.51M	-14.63M
	Investing Cash Flow
127.55M	-184.66M	102.89M	-70.58M	-242.23M	-24.38M
	Financing Cash Flow
10.40M	249.25M	53.17M	129.64M	186.38M	120.28M

Edgewise Therapeutics Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 15.29
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

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 15.29 is above the 20-day moving average (MA) of 14.78, above the 50-day MA of 14.36, and below the 200-day MA of 24.34, indicating a neutral trend. The MACD of 0.03 indicates Negative momentum. The RSI at 52.29 is Neutral, neither overbought nor oversold. The STOCH value of 64.39 is Neutral, 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	$1.78B	―	-5.78%	―	25.50%	64.63%
SPRY	61 Neutral	$1.41B	174.05	-6.91%	―	971120.00%	68.69%
ARDX	57 Neutral	$890.03M	―	-36.26%	―	127.33%	21.31%
Sector *	54 Neutral	$5.41B	3.27	-45.10%	3.29%	16.81%	0.02%
TVTX	51 Neutral	$1.29B	―	-422.66%	―	49.29%	44.52%
LQDA	50 Neutral	$1.24B	―	-188.03%	―	-11.42%	0.26%
EWTX	40 Underperform	$1.62B	―	-30.29%	―	―	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.