EWTX - Edgewise jumps as Truist initiates at Buy on lead asset
2023-05-01 12:51:17 ET
Edgewise Therapeutics ( NASDAQ: EWTX ) added ~14% on Monday to reach the highest level in more than two months after Truist launched its coverage with a Buy rating and a $25 per share target, citing the prospects of its lead candidate EDG-5506.
Citing KOL checks, the firm sees positive views on mechanism action and functional benefits of myosin inhibitor EDG-5506 in Becker muscular dystrophy (BMD) and Duchenne muscular dystrophy (DMD).
Truist analyst Srikripa Devarakonda argues that EDG-5506, which is undergoing Phase 2 trials, could become standard-of-care in BMD and a combo partner to improve therapeutic efficacy in all DMD patients.
Estimating $2.5B and $715M adjusted and unadjusted peak sales for EDG-5506, respectively, Devarakonda notes that her projection is not yet reflected in the stock at the current levels.
EWTX’s 2+ years of cash runway and read-through from preclinical & early clinical DMD data for EDG-5506 are among other highlights of the investment thesis.
More on EWTX
- Edgewise Therapeutics initiates phase 2 trial of muscle wasting therapy in kids
- Edgewise Therapeutics: Solid Data, Decent Cash, Great Management Profile
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Edgewise jumps as Truist initiates at Buy on lead asset