Edgewise (EWTX) Rallies 35% on Issue of New Common Stock


Edgewise Therapeutics EWTX announced that it is floating a secondary issue of around 21.8 million shares of its common stock to the public at an issue price of $11.00 per share, intending to raise around $240 million in gross proceeds.

The deal will also include participation from venture capital and investment management companies. New participants in the offering comprise RA Capital Management, TCGX and Venrock Healthcare Capital Partners. Existing investors, including Cormorant Asset Management, Frazier Life Sciences, and others, are also involved.

EWTXplans to use net proceeds from this new issue and its existing cash balance to support the clinical development of its lead pipeline candidate EDG-5506, which is being evaluated in multiple muscular dystrophy indications. Management also intends to use the proceeds to support the potential commercial launch of the candidate in the United States.

Shares of EWTX rose 34.6% on Jan 19 following the announcement. This uptick was likely due to the issue of shares at $11.00 per share, which is at a premium of 13.5% to the share price as of Jan 18. Though this new issuance constitutes a major issue to the outstanding share count of around 70.45 million (unaudited, as of Dec 31, 2023), the participation of existing investors adds to investors’ confidence and is likely to ensure that existing shareholder base dilution remains low.

EWTX’s shares have risen 23.1% year to date against the industry’s 15.2% fall.

Image Source: Zacks Investment Research

The secondary offering is expected to close by Jan 23, 2024.

EDG-5506 is Edgewise’s most advanced pipeline candidate, being evaluated in the phase III GRAND CANYON study for Becker muscular dystrophy (BMD). The candidate is also being evaluated in separate mid-stage studies for Duchenne muscular dystrophy (DMD), Limb-Girdle muscular dystrophy (LGMD) and McArdle Disease. EWTX is also enrolling participants in an early-stage study evaluating EDG-7500 for hypertrophic cardiomyopathy (HCM).

Edgewise is currently devoid of a marketed product and is entirely dependent on the successful development of its pipeline candidates. This secondary stock offering will strengthen EWTX’s financial position. Earlier this month, management stated that its preliminary cash balance stood at $318.4 million as of the end of December 2023.

The new cash influx will enable management to accelerate its pipeline development, allowing it to complete the GRAND CANYON study so that it can file a regulatory filing for EDG-5506 in BMD. The increased cash balance will also help Edgewise to extend its existing cash runway.

Edgewise Therapeutics, Inc. Price

 

Edgewise Therapeutics, Inc. Price

Edgewise Therapeutics, Inc. price | Edgewise Therapeutics, Inc. Quote

 

Zacks Rank & Stocks to Consider

Edgewise carries a Zacks Rank #3 (Hold) at present. Some better-ranked stocks in the overall healthcare sector include CytomX Therapeutics CTMX, Novo Nordisk NVO and Sarepta Therapeutics SRPT. While CytomX and Novo Nordisk sport a Zacks Rank #1 (Strong Buy), Sarepta carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

In the past 60 days, estimates for CytomX Therapeutics for 2023 have swung from a loss of 10 cents per share to earnings of 2 cents. During the same period, estimates for 2024 have narrowed from a loss of 22 cents to a loss of 6 cents. Shares of CytomX have lost 40.3% in the past year.

CytomX Therapeutics’ earnings beat estimates in three of the last four quarters while missing the estimates on one occasion. On average, the company witnessed an average surprise of 45.44%. In the last reported quarter, CytomX Therapeutics’ earnings beat estimates by 123.53%.

In the past 60 days, estimates for Novo Nordisk’s 2023 earnings per share have increased from $2.62 to $2.67. During the same period, the earnings estimates for 2024 have risen from $3.15 to $3.29. Shares of NVO have surged 51.6% in the past year.

Novo Nordisk’s earnings beat estimates in two of the last four quarters while meeting the mark on one occasion and missing the estimates on another. On average, the company witnessed an average surprise of 0.58%. In the last reported quarter, Novo Nordisk’s earnings beat estimates by 5.80%.

In the past 60 days, Sarepta’s loss estimates for 2023 have improved from a loss of $6.90 per share to $6.57. During the same period, earnings estimates for 2024 have risen from 98 cents to $2.14. Sarepta’s shares have lost 9.9% in the past year.

Sarepta’s earnings beat estimates in each of the last four quarters, delivering an average surprise of 48.67%. In the last reported quarter, Sarepta’s earnings beat estimates by 72.29%.

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

Novo Nordisk A/S (NVO) : Free Stock Analysis Report

Sarepta Therapeutics, Inc. (SRPT) : Free Stock Analysis Report

CytomX Therapeutics, Inc. (CTMX) : Free Stock Analysis Report

Edgewise Therapeutics, Inc. (EWTX) : Free Stock Analysis Report

To read this article on Zacks.com click here.

Zacks Investment Research

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.



Source link

Visited 1 times, 1 visit(s) today

Related Article

See Which Recent 13F Filers Hold TSLA But Boussard & Gavaudan Investment Management, Wright Wealth, Lombard Odier Asset Management USA, Carret Asset Management, Coppell Advisory Solutions and Deltroit Asset Management UK Exited

At Holdings Channel, we have reviewed the latest batch of the 111 most recent 13F filings for the 03/31/2026 reporting period, and noticed that Tesla Inc (Symbol: TSLA) was held by 31 of these funds. When hedge fund managers appear to be thinking alike, we find it is a good idea to take a closer

Stock trade disclosure reveals Trump made massive gains on Big Tech bets

Donald Trump’s latest financial disclosure has opened an unusually detailed window into the scale and pace of trading activity tied to the US president’s investment portfolio. The filing, submitted on Thursday to the US Office of Government Ethics through two OGE Form 278-T reports, disclosed more than 3,600 transactions executed between January and the end

Nvidia’s trillion-dollar run puts pressure on the bulls

BEIJING, CHINA – MAY 14: Nvidia CEO Jensen Huang (C) gestures as he prepares to depart following a welcome ceremony at the Great Hall of the People on May 14, 2026 in Beijing, China. President Trump is meeting with President Xi Jinping in Beijing to address the Iran conflict, trade imbalances, and the Taiwan situation

Is Now a Bad Time to Invest?

The market has been on a roll lately, with the S&P 500 (SNPINDEX: ^GSPC) setting new highs throughout May. If you think you missed your opportunity when the market bottomed in late March, don’t fret. The market hitting new all-time highs is not particularly rare and should not change your investment strategy. And if you

If I Could Tell All Investors 1 Thing About the Stock Market Right Now, It’s This

The past year has been a confusing one for many investors, as the stock market has been sending mixed signals. Despite persistent recession warnings, surging inflation, and the war in Iran disrupting global supply chains, major market indexes are thriving. The S&P 500 (^GSPC +0.77%) has delivered total returns of around 33% over the last

50 Years of Stock Market Returns

 A reader asks: I was doing my net worth over the last year, and found this to be very interesting. I asked AI if the last year return of the S&P 500 of 30.6% is one of the biggest. It was not, most likely #7 or #8. Either way, this is rarified air here,

Stock Market Today, May 14: Cisco Systems Surges After Blowout Earnings and Raised Guidance

Today’s Change (13.38%) $13.63 Current Price $115.50 Key Data Points Market Cap $402B Day’s Range $113.98 – $119.35 52wk Range $62.30 – $119.36 Volume 3M Avg Vol 22M Gross Margin 63.97% Dividend Yield 1.62% Cisco Systems (CSCO +13.38%), a networking and communication technology solutions provider, closed Thursday at $115.53, up 13.41%. The stock is rallying

The Best Stocks to Buy Right Now on Sale

Success in the stock market isn’t complicated. The occasional bouts of volatility can make it feel challenging, but it comes down to patiently owning shares of a great business with a long runway for growth. The companies below have delivered market-beating returns over the past decade, and their recent pullbacks could be a gift for

Here’s Why I’d Sell Nebius Stock and Buy Astera Labs Instead

Nebius Group (NBIS +6.57%) sits at the center of every artificial intelligence (AI) hype checklist right now: graphics processing unit (GPU) cloud, hyperscaler partnerships, an Nvidia investment, and a stock that has multiplied in value over the last six months. The issue isn’t the story itself; it’s that investors now have to pay the valuation the

The 60/40 Portfolio Is Flatlining: Alternatives Can Revive It

(Image credit: Getty Images) For more than six decades, the 60/40 portfolio, comprised of 60% equities and 40% fixed income, served as the baseline for retirement planning. Its success was built on the inverse correlation between stocks and bonds: When equities faced volatility, bonds typically provided a stabilizing cushion. However, recent market shifts have exposed

Here’s Why Micron Can Reach a $1 Trillion Market Cap This Year

Micron‘s (NASDAQ: MU) positioning in the AI build-out and recent results have put it on course for a benchmark that would have been inconceivable last year. The maker of memory chips has a real shot at surpassing a $1 trillion market cap this year. A 150% year-to-date rally has helped, but the stock’s gains are

Why Nextpower Stock Rocked the Market Today

Nextpower (NXT +4.76%) was providing its investors with some powerful gains on Wednesday. Those folks traded the solar infrastructure company’s sock up by over 9% that day. That followed its release of estimates-crushing fiscal fourth quarter results, combined with the announcement of a fresh acquisition. A fine fiscal year Nextpower would have attracted attention simply

Property market slumps despite new stock highs

LITTLE APPETITE: Weak demand and rising unsold inventory has caused developers to step back from large-scale projects with amplified risk, an expert said By Crystal Hsu / Staff reporter Taiwan’s cooling housing market is diverging sharply from the buoyant stock market, as tighter mortgage restrictions and government measures aimed at curbing speculation weigh on buyer

Should You Buy Bloom Energy Stock While It’s Below $300?

Bloom Energy (BE +5.79%) is a clean energy company making large, box-shaped power generators that let businesses generate their own electricity instead of buying it from the grid. It essentially gives companies their own mini power plant that keeps the lights on even if the larger grid goes out. Bloom’s technology is gaining momentum right

Tech stocks rally rolls on as US-China talks underway

US President Donald Trump at a welcome ceremony with China’s President Xi Jinping at the Great Hall of the People in Beijing (Brendan SMIALOWSKI) · Brendan SMIALOWSKI/AFP/AFP European and US stock markets climbed Thursday as a tech-fuelled rally rolled on even as the United States and China were locked in talks in Beijing, accompanied by

0
Would love your thoughts, please comment.x
()
x