Why Did Edgewise Therapeutics (EWTX) Plunge 15.39%?

On August 21, 2025, Edgewise Therapeutics (EWTX) experienced a significant drop of 15.39% in pre-market trading, reflecting a notable shift in investor sentiment.

JP Morgan analyst Tessa Romero maintained an "Overweight" rating for Edgewise Therapeutics while lowering the price target from $40.00 to $30.00, indicating a 25% reduction. Despite this adjustment, the "Overweight" rating suggests continued confidence in the company's performance relative to its peers.

Edgewise Therapeutics is a clinical-stage biopharmaceutical company focused on developing treatments for severe, rare muscle disorders. The company's product candidates, Sevasemten and EDG-7500, are designed to address musculoskeletal diseases. Sevasemten, an orally administered small molecule, is currently in Phase 2 trials for dystrophinopathies, including Duchenne and Becker muscular dystrophy.

Recent historical ratings for Edgewise Therapeutics include an "Outperform" rating from RBC Capital with a price target of $49.00, and a "Buy" rating from HC Wainwright & Co. with a price target of $42.00. These ratings reflect the company's potential in the biopharmaceutical sector.