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Sep 30, 2022

Edgewise Therapeutics Q3 2022 Earnings Report

Edgewise Therapeutics reported financial results for the third quarter of 2022 and recent business highlights.

Key Takeaways

Edgewise Therapeutics reported a net loss of $17.5 million for the third quarter of 2022. The company's cash, cash equivalents, and marketable securities totaled $365 million as of September 30, 2022. They also completed an upsized underwritten public offering of common stock, resulting in net proceeds of $129 million.

Announced positive 6-month interim results from the ARCH open label study of EDG-5506 in adults with Becker muscular dystrophy (BMD).

Advanced CANYON Phase 2 trial in BMD and initiated LYNX Phase 2 trial in Duchenne muscular dystrophy (DMD).

Completed a successful financing to continue to drive muscular dystrophy programs through clinical development.

Reported cash, cash equivalents and marketable securities of $365 million as of September 30, 2022.

EPS
-$0.34
Previous year: -$0.26
+30.8%
Research and development expenses
$13.9M
Previous year: $9.88M
+40.7%
General and administrative expenses
$4.4M
Previous year: $3.2M
+37.7%
Cash and Equivalents
$365M
Previous year: $290M
+25.6%
Free Cash Flow
-$13.3M
Previous year: -$8.71M
+53.0%
Total Assets
$377M
Previous year: $294M
+28.1%

Edgewise Therapeutics

Edgewise Therapeutics

Forward Guidance

The company plans to continue advancing its clinical trials and preclinical research programs, particularly focusing on EDG-5506 and EDG-002.

Positive Outlook

  • Advancing CANYON Phase 2 clinical trial of EDG-5506 in individuals with BMD.
  • Initiated LYNX Phase 2 clinical trial of EDG-5506 in children with DMD.
  • Advancing the EDG-002 program, focused on identifying cardiac muscle modulators.
  • Plans to initiate IND-enabling studies in 2022 for EDG-002 program.
  • Observed decreases in biomarkers of muscle damage and improvements in NSAA in ARCH trial with EDG-5506.

Challenges Ahead

  • Potential for product candidates to cause serious adverse events.
  • Uncertainties regarding the timing, progress, and results of clinical trials.
  • Dependence on raising additional funding to continue business and product development plans.
  • Risk of negative impacts from the COVID-19 pandemic on operations.
  • Potential for clinical trial results to differ from preclinical, interim, or expected results.