Edgewise Therapeutics (EWTX) AI Stock Analysis

• Market Cap: $1.50B
• Dividend Yield: N/A
• Average Volume (3M): 767.80K
• Price to Earnings (P/E): ―
• Beta (1Y): 2.32
• Revenue Growth: N/A
• EPS Growth: -1.46%
• Country: US
• Employees: 117
• Sector: Healthcare
• Sector Strength: 45
• Industry: Biotechnology
• EPS (TTM): -0.34
• Shares Outstanding: 105,345,710
• 10 Day Avg. Volume: 840,187
• 30 Day Avg. Volume: 767,801
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 0.52
• Enterprise Value/Revenue: 371.18
• Enterprise Value/Gross Profit: -334.25
• Enterprise Value/Ebitda: -4.70
• 1Y Price Target: $36.20
• Price Target Upside: 154.21% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 10

• 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

Strong Cash Position

A robust cash position is vital for funding R&D activities, ensuring Edgewise can continue developing its pipeline without immediate financial constraints.

Successful Capital Raising

The successful capital raise provides financial resources to advance clinical trials and support potential product launches, enhancing long-term growth prospects.

Positive Clinical Trial Results

Successful trial outcomes indicate potential for new therapeutic options, strengthening Edgewise's position in the biotech industry and supporting future product development.

Negative Factors

Pre-Revenue Stage

Being in a pre-revenue stage means the company relies heavily on external funding, posing risks to financial sustainability until products reach the market.

Increasing Losses

Rising losses without revenue generation highlight financial challenges, potentially impacting long-term viability if not addressed through successful product commercialization.

Negative Cash Flows

Persistent negative cash flows suggest potential cash constraints, emphasizing the need for successful product launches to achieve financial independence.

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 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	2.12M	0.00	0.00	0.00	0.00	0.00
Gross Profit	-2.35M	-2.29M	-1.73M	-538.00K	-272.00K	-185.00K
EBITDA	-167.43M	-131.52M	-112.81M	-67.10M	-42.94M	-17.01M
Net Income	-150.70M	-133.81M	-100.16M	-67.64M	-42.81M	-17.05M
Balance Sheet
Total Assets	613.33M	486.82M	340.04M	367.10M	285.23M	131.14M
Cash, Cash Equivalents and Short-Term Investments	593.99M	470.17M	318.39M	351.95M	280.79M	129.09M
Total Debt	4.37M	4.74M	5.41M	4.41M	0.00	160.21M
Total Liabilities	24.26M	27.60M	21.20M	20.39M	10.85M	164.56M
Stockholders Equity	589.07M	459.22M	318.83M	346.72M	274.38M	-33.42M
Cash Flow
Free Cash Flow	-125.67M	-110.34M	-97.69M	-58.18M	-34.17M	-14.84M
Operating Cash Flow	-124.78M	-109.03M	-91.95M	-52.63M	-33.51M	-14.63M
Investing Cash Flow	-71.98M	-184.66M	102.89M	-70.58M	-242.23M	-24.38M
Financing Cash Flow	196.68M	249.25M	53.17M	129.64M	186.38M	120.28M

Edgewise Therapeutics Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 14.24
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For EWTX, the sentiment is Negative. The current price of 14.24 is below the 20-day moving average (MA) of 14.53, above the 50-day MA of 14.02, and below the 200-day MA of 19.94, indicating a neutral trend. The MACD of 0.19 indicates Positive momentum. The RSI at 47.98 is Neutral, neither overbought nor oversold. The STOCH value of 27.88 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for EWTX.

Edgewise Therapeutics Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
VRDN	61 Neutral	$1.54B	―	-62.99%	―	5.90%	-0.36%
Sector *	51 Neutral	$7.92B	-0.36	-43.38%	2.25%	22.38%	-2.17%
JANX	45 Neutral	$1.45B	―	-12.82%	―	-97.10%	-96.30%
PHVS	42 Neutral	$1.49B	―	-63.96%	―	―	-36.92%
EWTX	40 Underperform	$1.50B	―	-27.41%	―	―	-1.46%
BHVN	40 Underperform	$1.47B	―	-295.94%	―	―	16.36%
VERA	39 Underperform	$1.52B	―	-54.83%	―	―	-62.51%

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.