Edgewise Therapeutics Plunges 20% on Safety Concerns

Edgewise Therapeutics' stock experienced a significant drop of 11.27% in pre-market trading on April 4, 2025, following the release of its latest clinical trial results.

Edgewise Therapeutics, a biopharmaceutical company focused on muscle diseases, faced a challenging day as its stock plummeted due to safety concerns highlighted in a mid-stage clinical trial for its investigational drug. The company's shares tumbled more than 20% after disclosing the results, which raised questions about the drug's efficacy and safety.

Analysts from Scotiabank downgraded Edgewise Therapeutics following the disclosure of safety concerns in the clinical trial. This downgrade further contributed to the negative sentiment surrounding the company's stock, leading to a significant decline in its share price.

Despite the setback, some analysts, including RBC Capital's Leonid Timashev, saw the downside move as a potential buying opportunity. Timashev lowered the price target for Edgewise Therapeutics but maintained an Outperform rating, suggesting that the current dip could be a temporary setback for the company.