Key insights
- Goldman Sachs raised its price target on Edgewise Therapeutics (EWTX) to $32.00 following positive Phase 2 data for its hypertrophic cardiomyopathy drug EDG-7500. While the data de-risks the drug, the firm maintained a Neutral rating due to the stock trading above its new target, the long timeline for Phase 3 completion (estimated 3 years), and uncertainty around the FDA meeting. The stock's recent significant gains also suggest limited near-term upside despite clinical progress.
Investing.com - Goldman Sachs raised its price target on Edgewise Therapeutics stock (NASDAQ:EWTX) to $32.00 from an undisclosed prior level while maintaining a Neutral rating on the shares.
The adjustment follows the release of 12-week Part D results from the open-label, Phase 2 CIRRUS-HCM study of EDG-7500 in obstructive and non-obstructive hypertrophic cardiomyopathy. Goldman Sachs analyst Paul Choi said the Phase 2 data showcase functional improvements in both patient populations.
Edgewise shares traded in a volatile range during the session, moving between a decline of 12% and a gain of 5%, and were down 5% at the time of the analyst’s note while the XBI biotech index remained flat. The stock closed at $33.95, notably above Goldman’s $32 target, following a remarkable 134% gain over the past year and a 37% year-to-date surge.
Goldman Sachs said the data meaningfully de-risks EDG-7500 but noted the need for further clarity on Phase 3 design following an end-of-phase-2 meeting with the FDA scheduled for the second half of 2026. According to InvestingPro analysis, the stock currently trades above its Fair Value, suggesting limited upside despite the positive clinical data. The firm also cited the timing of approximately three years for the Phase 3 study to complete.
The analyst said the near-term focus centers on Phase 3 specifics, with a long-term debate on whether the hypertrophic cardiomyopathy treatment paradigm can decouple from echocardiogram scans. Goldman Sachs said the catalyst path may make it difficult to sustain year-to-date outperformance.
In other recent news, Edgewise Therapeutics announced results from its 12-week Phase 2 CIRRUS-HCM trial for EDG-7500, targeting obstructive and nonobstructive hypertrophic cardiomyopathy. The trial involved 53 patients receiving doses between 25 mg and 150 mg of the oral cardiac sarcomere modulator. Despite the positive trial results, Edgewise Therapeutics shares experienced a notable decline of 25%, possibly due to concerns about the competitive landscape for hypertrophic cardiomyopathy treatments. Truist Securities maintained a Buy rating on Edgewise Therapeutics, with a price target of $52.00, citing the drug’s differentiated profile based on left ventricular ejection fraction. Similarly, Leerink reiterated an Outperform rating with a $50.00 price target, highlighting durable improvements in hemodynamics, biomarkers, diastolic function, and patient-reported outcomes. Both firms expressed confidence in EDG-7500’s potential as a treatment option for hypertrophic cardiomyopathy. These developments come amid a competitive market environment for similar therapies.
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