Edgewise Narrows Focus as Quarterly Loss Widens
The biotechnology company added $1.55 billion in upfront cash through the July sale of its muscular-dystrophy business.
Edgewise Therapeutics (EWTX) widened its second-quarter net loss 59% as the clinical-stage biotechnology company increased spending on its drug programs. The loss reached $57.3 million, or $0.53 a share, compared with $36.1 million, or $0.34 a share, a year earlier.
The quarter preceded a strategic shift in July, when Edgewise sold sevasemten and its muscular-dystrophy business and became focused exclusively on cardiovascular treatments.
Operating expenses rose 45% to $61.9 million from $42.6 million a year earlier, widening the operating loss by the same $19.3 million.
Research-and-development expense increased 42% to $47.5 million. The increase was mainly due to clinical-development activity for EDG-7500 and EDG-15400, work on the MESA extension study, and higher personnel costs.
General-and-administrative expense climbed 59% to $14.4 million, reflecting higher personnel and stock-compensation costs as well as increased professional fees and administrative costs. Interest income fell 29% to $4.6 million.
Cash, cash equivalents and marketable securities declined to $460.7 million at June 30 from $530.1 million at the end of 2024. After the July transaction, Edgewise estimated pro forma liquidity of $2.01 billion before taxes and transaction costs.
The divestiture paired a larger capital base with a cardiovascular-only pipeline, placing Edgewise’s future development spending behind that narrower portfolio.