Edgewise Therapeutics' (EWTX) update for EDG-7500 to target the genetic heart condition hypertrophic cardiomyopathy, or (HCM) is expected to deliver clear efficacy and a tolerability profile that could differentiate it from aficamten, potentially driving shares up another 10% to 20%, RBC Capital Markets said Thursday in a note.
Following Cytokinetics' (CYTK) ACACIA readout for its aficamten drug candidate, where it saw a positive but modest effect in nHCM, paired with clear drug-driven left ventricular ejection fraction, RBC said Edgewise is in a strong position to differentiate in the indication with '7500.
The readout of EDG-7500's 12-week data in Q2 could drive significant upside, particularly if strong efficacy is measured with no negative impact on left ventricular ejection fraction, along with single digit atrial fibrillation, according to the note.
A clear data win could drive as much as 5% to 10% upside on the day, and RBC sees more than $3 billion in peak sales for '7500, according to the note.
Sevasemten is also on track for topline data readout in Q4, according to analysts, who add that Edgewise has a 60% probability of showing clear efficacy in Becker Muscular Dystrophy, which could be a $1.3 billion peak revenue opportunity and drive 25% to 50% upside - even after a win on '7500, the brokerage said.
RBC kept an outperform rating on Edgewise Therapeutics with a price target of $50.
Price: $35.21, Change: $-0.37, Percent Change: -1.04%