Edgewise shares still reflect limited credit for EDG-7500, says Wedbush

Wedbush says shares of Edgewise Therapeutics (EWTX) are up 67% since mid-December, in part due to read through from competitor Cytokinetics’ (CYTK) aficamten update in hypertrophic cardiomyopathy. Investors remain focused on how to gauge Edgewise’s HCM candidate EDG-7500’s differentiation versus Bristol Myers’ (BMY) Camzyos and aficamten, the analyst tells investors in a research note. The firm looks for preliminary Phase 1 EDG-7500 data to offer initial differentiation signals versus mavacamten and aficamten likely on dosing and safety. Despite Edgewise’s recent rally, the stock is still being given limited credit for EDG-7500, contends Wedbush. Should EDG-7500 demonstrate a positive Phase 1 signal, the firm anticipates a re-rating on Edgewise’s valuation. It continues to see the company as one of a top pick entering 2024 with an Outperform rating and $23 price target.