Edgewise Therapeutics Plunges 30.45% on Stock Offering

Edgewise Therapeutics, Inc. (EWTX) experienced a significant drop of 30.45% in pre-market trading on April 2, 2025, amidst a series of strategic announcements and clinical trial updates.

Edgewise Therapeutics, a biopharmaceutical company focused on muscle diseases, recently announced the pricing of a $200 million stock offering. The company plans to sell 9,935,419 shares at $20.13 per share, aiming to raise funds to support the potential U.S. commercial launch of its lead product candidate, sevasemten, for Becker and Duchenne muscular dystrophies.

In addition to the stock offering, Edgewise reported positive Phase 2 trial results for its cardiac sarcomere modulator, EDG-7500, in the treatment of hypertrophic cardiomyopathy. The trial demonstrated a reduction in LVOT-G by up to 71%, indicating the drug's potential efficacy in managing heart muscle diseases.

Despite the positive clinical data, the stock offering announcement and the subsequent dilution of shares likely contributed to the significant pre-market drop in Edgewise's stock price. Investors may be concerned about the potential impact of the increased share count on future earnings per share and the company's valuation.