Edgewise Books $1.35 Billion Gain on Sevasemten Sale

The Tip Desk · November 10, 2026 · 3 min read

Net income reached $1,166.2 million, or $10.71 a share, after the July Servier close, as cash rose to $1,743.9 million.

Edgewise Therapeutics (EWTX) reported net income of $1,166.2 million, or $10.71 a share on a basic basis and $9.65 a share diluted, for the third quarter of 2026, compared with a net loss of $40.7 million, or $0.39 a share, a year earlier. The cardiovascular biopharmaceutical company said the swing primarily reflected a $1.348 billion gain on the sale of sevasemten and its muscular dystrophy business to Servier, partially offset by income tax expense associated with the transaction.

The July close converted a still-running clinical-stage developer into a cash-rich, cardiovascular-focused company. Cash, cash equivalents and marketable securities were approximately $1,743.9 million as of September 30, 2026, up from approximately $460.7 million at June 30. Edgewise received $1.396 billion in upfront cash proceeds at closing. The gain reflected consideration recognized at closing, including amounts associated with a general indemnification arrangement, less the carrying value of assets transferred, transaction costs and consideration allocated to transition services.

Operating expenses remained modest relative to that cash pile. Research and development expenses were $31.6 million in the third quarter, down from $37.5 million in the year-ago quarter. The company said the decrease was primarily attributable to lower costs associated with sevasemten following the July sale, partially offset by higher program spend on EDG-7500, discovery and preclinical programs, and personnel-related costs. General and administrative expenses were $14.6 million, versus $9.4 million a year earlier, which Edgewise attributed primarily to higher personnel-related costs, including stock-based compensation, as it expanded organizational capabilities to support clinical development, as well as increased professional fees. Total operating expenses were $46.1 million. Loss from operations was $46.1 million. Interest income was $16.5 million, versus $6.2 million a year earlier, and other income of $3.1 million appeared alongside the sevasemten gain.

Clinical work continued on both remaining cardiovascular programs. In August, Edgewise shared positive top-line results from the 12-week Phase 2 Part D CIRRUS-HCM open-label trial of EDG-7500 in obstructive and nonobstructive hypertrophic cardiomyopathy at the European Society of Cardiology Congress. The company also published the preclinical pharmacologic profile of EDG-7500, an investigational oral cardiac sarcomere modulator designed to act on the regulatory light chain, in JCI Insight. It said the data support EDG-7500’s ability to improve cardiac relaxation while preserving overall systolic performance, and that early clinical observations in symptomatic HCM patients have been consistent with those preclinical data. Edgewise expects to initiate a Phase 3 trial of EDG-7500 by the end of 2026.

On the heart-failure side, the company dosed the first patient in the Phase 2 EQUINOX-HFpEF trial of EDG-15400, an investigational oral selective cardiac sarcomere modulator, in adults with symptomatic heart failure with preserved ejection fraction and a left ventricular ejection fraction of at least 50%. In the second-quarter release, Edgewise had said it expected to initiate that Phase 2 in the second half of 2026. President and Chief Executive Officer Kevin Koch said the third quarter reflected continued execution across both cardiovascular programs and that the company expects to initiate the Phase 3 HCM trial by year-end 2026.

The company said it has not generated any revenue to date and remains dependent on the success of EDG-7500, EDG-15400 and future programs. Weighted-average shares outstanding were 108.9 million basic and 120.9 million diluted. Stockholders’ equity was $1.63 billion at September 30. Liabilities were $147.4 million.