-- Edgewise Therapeutics (EWTX) faces near-term upside opportunity with Cytokinetics' (CYTK) upcoming readout from its Acacia trial, RBC Capital Markets said in a note Friday.
The brokerage said that regardless of Cytokinetics' trial data, there may be positive readthroughs for Edgewise's EDG-7500 candidate, driving about 10% upside.
A positive result from the Acacia readout would validate drugs for non-obstructive hypertrophic cardiomyopathy and suggest that development of iterative drugs like EDG-7500 can progressively drive better benefits, while an Acacia miss could mean a potentially uncontested market, according to the note.
Follow-up data from Edgewise's Cirrus trial also has the potential to drive an about 10% upside, creating a "nice" catalyst path in Q2, while the company's Grand Canyon trial results could be the stock's largest catalyst this year, the brokerage said.
RBC has an outperform, speculative risk rating on the stock, with a $50 price target.
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