Edgewise Therapeutics Plunges 11.34% on Stock Offering

On April 3, 2025, Edgewise Therapeutics experienced a significant drop of 11.34% in pre-market trading, marking a notable decline in its stock performance.

Edgewise Therapeutics' recent stock decline can be attributed to several key factors. The company announced a $200 million stock offering, which was priced at $20.13 per share. This move was aimed at raising funds for further clinical trials and commercial launches, but it also led to a significant drop in the stock price, with shares trading lower by 25.7% during Wednesday's session.

Analysts have also weighed in on the company's prospects. RBC Capital analyst Leonid Timashev lowered the firm's price target on Edgewise Therapeutics to $52 from $56, while maintaining an Outperform rating. However, Scotiabank analyst Louise Chen downgraded the stock to Sector Perform from Outperform, with a price target of $14. These mixed sentiments from analysts reflect the uncertainty surrounding the company's future performance.

Despite the setbacks, Edgewise Therapeutics has shown promise in its clinical trials. The company's heart drug, EDG-7500, demonstrated positive Phase 2 results in a trial for heart muscle disease, reducing LVOT-G by up to 71%. This positive development could potentially offset some of the negative sentiment surrounding the stock offering and analyst downgrades.