Edgewise Therapeutics posts Q3 profit on asset sale

Overview

• U.S. cardiovascular drug developer swung to Q3 net income on $1.35 bln gain from asset sale

• Q3 operating expenses fell yr/yr after sevasemten sale, offset by higher R&D on pipeline

Outlook

• Company did not provide specific financial guidance for upcoming quarters or full year in its press release

Result Drivers

• ASSET SALE - Net income driven by $1.35 bln gain from sale of sevasemten program and muscular dystrophy business to Servier

• R&D SPENDING SHIFT - Lower R&D expenses after sevasemten sale, partially offset by increased spending on EDG-7500 and other pipeline programs

• ADMINISTRATIVE COSTS - Higher G&A expenses due to increased personnel costs and expanded organizational capabilities

Company press release:

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 12 "strong buy" or "buy", 1 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the biotechnology & medical research peer group is "buy"

• Wall Street's median 12-month price target for Edgewise Therapeutics, Inc. is $53.00, about 40.7% above its November 3 closing price of $37.68

Reuters Recommended Reads

• Nov 3 - Amgen Q3 revenue beats expectations on higher volumes

• Nov 3 - Pfizer Q3 revenue beats estimates on new launches; raises guidance

• Nov 3 - Mirum Pharmaceuticals Q3 net product sales surge, outlook raised

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)