Edgewise completes sale of sevasemten to Servier for $2.65B

Edgewise completes sale of sevasemten to Servier for $2.65B

Gold slides as U.S.-Iran conflict lifts oil, hawkish Fed bets grow BOULDER, Colo. - Edgewise Therapeutics Inc. (NASDAQ:EWTX) announced today the completion of its sale of sevasemten and its muscular dystrophy business to Servier for $1.55 billion in upfront cash and up to $1.1 billion in regulatory and commercial milestone payments, according to a press release statement. The company, with a market cap of $4.9 billion, has seen its stock surge 83% year-to-date and trade near its 52-week high of $48.40. Under the agreement, Servier acquired all rights to sevasemten, including intellectual property, regulatory filings, and clinical data.

Employees supporting the muscular dystrophy business received offers to transition to Servier. "Completing this transaction with Servier marks an important milestone for Edgewise and for the sevasemten program," said Kevin Koch, President and Chief Executive Officer of Edgewise Therapeutics. Sevasemten is being studied in late-stage clinical trials for Becker and Duchenne muscular dystrophy.

The drug has received FDA Orphan Drug Designation for both conditions and Fast Track designations. The GRAND CANYON pivotal cohort in Becker enrolled 175 participants, with top-line data expected in the fourth quarter of 2026. Edgewise said the upfront proceeds will fully fund development of EDG-7500 through potential approval.

The company plans to initiate a Phase 3 trial of EDG-7500 for hypertrophic cardiomyopathy in the fourth quarter of 2026, based on recent 12-week data from Part D of the CIRRUS-HCM Phase 2 trial. The company also plans to initiate a Phase 2 trial of EDG-15400 for heart failure with preserved ejection fraction. The transaction shifts Edgewise’s focus to cardiovascular diseases, with a pipeline comprising EDG-7500, EDG-15400, and EDG-003.

An InvestingPro tip notes the company holds more cash than debt on its balance sheet, strengthening its position to fund development through potential approval. However, analysis suggests the stock may be trading above its Fair Value following the deal announcement. Centerview Partners served as financial advisor to Edgewise, with Wilson Sonsini Goodrich & Rosati as legal counsel.

In other recent news, Edgewise Therapeutics has been the focus of several analyst updates following the release of its Phase 2 trial data for the drug candidate EDG-7500. RBC Capital increased its price target for the company to $59, citing positive 12-week trial results that demonstrated both safety and efficacy. Similarly, Goldman Sachs raised its price target to $32, noting functional improvements in patients with obstructive and non-obstructive hypertrophic cardiomyopathy.

Truist Securities maintained its Buy rating with a $52 price target, highlighting the drug’s differentiated left ventricular ejection fraction profile. Additionally, Oppenheimer initiated coverage on Edgewise Therapeutics with an Outperform rating and a price target of $51, following the completion of a Phase 2 readout for its lead candidate. Guggenheim raised its price target to $51, reflecting the planned sale of Edgewise’s muscular dystrophy business unit to Servier for $1.55 billion upfront, with additional milestones potentially bringing in up to $1.1 billion.

These developments underscore the company’s recent progress and strategic moves in the biopharmaceutical sector.