EWTX - Edgewise Therapeutics: Behind The Massive Rally

2024-02-18 10:03:54 ET

Summary

• Edgewise Therapeutics' stock has rallied massively after receiving FDA designations for its lead asset, EDG-5506, which has a potential $750 million opportunity in BMD.
• The company is focused on developing precision medicines for severe genetic neuromuscular and cardiac disorders.
• Edgewise Therapeutics has recently raised additional capital and has four data readouts for EDG-5506 scheduled for 2024.
• A full investment analysis around Edgewise Therapeutics follows in the paragraphs below.

You don't spread democracy with a barrel of a gun . ? Helen Thomas

Shares of neuromuscular precision medicine concern Edgewise Therapeutics, Inc. ( EWTX ) have rallied very strongly after the FDA assigned Orphan and Rare Pediatric designations to its lead asset EDG-5506. Prior to the surge, net of cash the market was valuing EDG-5506 at ~$100 million, even though early data suggests a decent shot of capturing an unencumbered $750 million opportunity in BMD. With four EDG-5506 data readouts slated for 2024 and enough cash to get it through 2025, this small biotech merited further investigation. An analysis follows below....

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