Edgewise Therapeutics, Inc. (EWTX)

Price$41.97Cached quoteAs of 2026-09-04 16:23 UTC

AI: Fair-priced

Price checkThe shares look fairly priced because strong cash protection offsets major clinical uncertainty.

Using about 107.8 million second-quarter shares outstanding, the observed quote implies a market value near $4.5 billion. June 30 cash and marketable securities were $460.7 million; the Servier sale then added $1.55 billion upfront. Pro forma filings estimated about $50 million of transaction costs and roughly $225.9 million of tax, leaving around $1.7-$1.8 billion of cash-like assets after costs and estimated tax before later operating burn. Investors are therefore assigning roughly $2.7 billion to the cardiovascular pipeline and future milestones—substantial, but not clearly excessive after encouraging Phase 2 data.

Big pictureEdgewise has no product revenue, but the Servier sale sharply reduced financing pressure.

Edgewise remains a loss-making drug developer with no revenue. Net loss widened from $133.8 million in 2024 to $167.8 million in 2025, while cash used by operations rose from $109.0 million to $143.8 million. In the first half of 2026, operations consumed $85.0 million as research spending increased. The divested sevasemten program also carried meaningful costs, so the sale should reduce future burn. This is not a normal cyclical business; value is driven mainly by trial results, approvals and eventual commercial adoption.

Business strengthA clean balance sheet and focused pipeline improve resilience, though shareholders were repeatedly diluted.

Before the sale, June-quarter debt was only $3.6 million and current assets were $471.5 million versus $29.0 million of current liabilities. The Servier transaction then transformed liquidity and concentrated capital on EDG-7500 and other cardiovascular programs. However, share count rose from 94.8 million at year-end 2024 to 106.2 million at year-end 2025 and 107.8 million by June 2026. Stock-based compensation, meaning employee pay in shares, was $34.8 million in 2025. The cash windfall should reduce near-term dilution risk, but historical financing relied heavily on issuing shares.

What could change the storyA successful late-stage trial could justify today's expectations; weak results would expose the valuation quickly.

The bull case is that EDG-7500 becomes a differentiated treatment for hypertrophic cardiomyopathy, a disease where the heart muscle thickens. In the 53-patient Phase 2 study, symptoms and heart-function measures improved and no patient had ejection fraction, the share of blood pumped out with each heartbeat, fall below 50%, supporting a planned Phase 3 start in late 2026. The bear case is that the study was open-label, nonobstructive symptom gains missed some investor expectations, and the company still has no approved product. Up to $1.1 billion of Servier milestones could help, but those payments are not guaranteed.

AI: News

Servier sale resets financesEdgewise sold its muscular dystrophy business, gaining cash and narrowing its strategic focus.

On June 1, Edgewise announced the Servier deal, and it closed on July 10. The company received $1.55 billion upfront and may receive up to $1.1 billion more if clinical, regulatory and commercial milestones are met. Reuters reported the shares surged about 17% in morning trading, while other market coverage recorded a strong full-day gain. The mechanism is clear: immediate cash lowered financing risk and shifted investor attention to the cardiovascular pipeline.

Heart drug data splits investorsPositive mid-stage heart-drug results supported further testing, but investors questioned the strength of benefits.

On June 16, Edgewise reported 12-week results from 53 patients in the Phase 2 EDG-7500 study. The company said symptoms, biomarkers and heart-function measures improved, with no ejection-fraction reductions below 50%. However, the nonobstructive group showed a 13-point average symptom-score improvement, below what some investors had hoped for. Reuters reported shares fell nearly 10% after the release, although later trading recovered part of the decline. The mixed reaction shows expectations were already demanding.

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Revenue

2022

2023

2024

2025

Net income

2020

2021

2022

2023

2024

2025

Free cash flow

2020

2021

2022

2023

2024

2025

Total cash / debt

CashTotal debt

2020

2021

2022

2023

2024

2025

Financial statements

	2025	2024	2023	2022	2021	2020
Revenue	$0	$0	$0	$0	—	—
Research & development	$151.4M	$127.0M	$90.9M	$54.0M	$32.2M	$15.0M
Operating expenses	$191.4M	$158.8M	$114.4M	$71.7M	$43.2M	$17.2M
Operating income	−$191.4M	−$158.8M	−$114.4M	−$71.7M	−$43.2M	−$17.2M
EBITDA	−$189.1M	−$156.5M	−$112.6M	−$71.1M	−$42.9M	−$17.0M
Net income	−$167.8M	−$133.8M	−$100.2M	−$67.6M	−$42.8M	−$17.1M
Basic EPSper basic share	-$1.63	-$1.45	-$1.57	-$1.26	-$1.14	-$23.17
Diluted EPSper diluted share	-$1.63	-$1.45	-$1.57	-$1.26	-$1.14	-$23.17

Review official source filings ↗

Owners

Reported shareholders

Reference date Jun 30, 2026

14.40%of listed shares

ORBIMED ADVISORS LLC15.52M shares · Jun 30, 2026

View holders

Top 20 reported holders of EWTX
Holder	% owned
ORBIMED ADVISORS LLC	14.40%15.52M shares
Thompson Peter A.	≈14.15%15.25M shares
Paradigm Biocapital Advisors LP	9.48%10.22M shares
RA CAPITAL MANAGEMENT, L.P.	7.79%8.39M shares
BlackRock, Inc.	6.13%6.61M shares
Jupiter Topco LLC	5.64%6.08M shares
FMR LLC	5.09%5.49M shares
NOVO HOLDINGS A/S	4.96%5.35M shares
Driehaus Capital Management LLC	4.39%4.73M shares
PERCEPTIVE ADVISORS LLC	4.06%4.37M shares
VANGUARD CAPITAL MANAGEMENT LLC	3.58%3.86M shares
BAKER BROS. ADVISORS LP	3.43%3.7M shares
Siren, L.L.C.	2.95%3.18M shares
Cormorant Asset Management, LP	2.33%2.51M shares
GEODE CAPITAL MANAGEMENT, LLC	2.02%2.17M shares
ALLIANCEBERNSTEIN L.P.	1.97%2.12M shares
Integral Health Asset Management, LLC	1.86%2M shares
BRAIDWELL LP	1.85%2M shares
MORGAN STANLEY	1.81%1.95M shares
STATE STREET CORP	1.70%1.83M shares

Percentages use 107.78M shares of this listed class outstanding on Jun 30, 2026. ≈ compares the latest reported holding with a share total from a different date; it is not a confirmed current stake.

Gray completes the 100% scale. Reported positions may overlap; holders have different reporting dates.

Source: SEC Form 13F ↗Updated Sep 29, 2026 · Quarterly data

Insider buys & sells

Jul 1, 2024–Jun 30, 2026

Buys5$20.20M disclosed value

Sells (SEC code S)46$25.99M disclosed value

Transaction	Insider	Type	Shares	Price	Value	Owned after
May 5, 2026Form 4	Donovan Joanne M.CMO	SellCommon Stock	50.0K	$38.57	$1.93M	4.4K
May 4, 2026Form 4	Donovan Joanne M.CMO	SellCommon Stock	5.2K	$31.29	$163.6K	4.4K
Apr 1, 2026Form 4 · 10b5-1	Donovan Joanne M.CMO	SellCommon Stock	28.7K	$32.31	$926.1K	9.6K
Mar 31, 2026Form 4 · 10b5-1	Donovan Joanne M.CMO	SellCommon Stock	21.3K	$32.12	$685.4K	9.6K
Mar 27, 2026Form 4 · 10b5-1	Donovan Joanne M.CMO	SellCommon Stock	6.7K	$30.98	$208.7K	9.6K