Edgewise Therapeutics Announces Pricing of $240 Million Underwritten Offering of Common Stock

Rhea-AI Summary

Edgewise Therapeutics, Inc. (NASDAQ: EWTX) has announced the pricing of an underwritten offering of 21,818,182 shares of its common stock at an offering price of $11.00 per share, expecting to generate approximately $240 million. The company plans to use the net proceeds to support various clinical trials and research and development programs, as well as for general corporate purposes.

Financial Analyst

The capital raise by Edgewise Therapeutics through an underwritten offering of common stock is a strategic financial move that is expected to generate substantial gross proceeds of approximately $240 million. The involvement of both new and existing investors signifies a robust confidence in the company's pipeline and growth prospects. From a financial perspective, the pricing of shares at $11.00 represents the market's current valuation of the company and its future potential, taking into account the risks associated with biopharmaceutical development.

Investors and stakeholders should note the intended use of the proceeds, which includes the potential commercial launch of a product for Becker muscular dystrophy, clinical trials and general corporate purposes. This allocation strategy indicates a proactive approach to managing the company's cash flow, potentially reducing future financial risk and enhancing the company's ability to achieve its strategic objectives. However, investors should also consider the dilutive effect of the new shares on existing ownership and earnings per share.

Medical Research Analyst

The announcement by Edgewise Therapeutics highlights the progression of its clinical programs, particularly EDG-5506 for Becker muscular dystrophy and EDG-7500 for hypertrophic cardiomyopathy. The success of these trials could lead to significant advancements in the treatment of these diseases. The allocation of funds towards these trials underscores the company's commitment to addressing unmet medical needs.

From a research perspective, the success of EDG-5506 and EDG-7500 in clinical trials could position Edgewise as a leader in muscle disease therapeutics, potentially providing long-term value to shareholders. However, the inherent risk of clinical trials must be acknowledged, as any setbacks could adversely affect the company's financial position and stock performance. Stakeholders should closely monitor trial outcomes to assess the company's trajectory.

Market Research Analyst

The biopharmaceutical sector is highly competitive and capital-intensive, with a constant need for innovation and funding to support research and development efforts. Edgewise's successful pricing of its stock offering suggests investor confidence and a positive market reception to the company's strategic vision. The entry of prominent investment firms as new investors could be interpreted as a strong market signal, potentially influencing peer companies and investor sentiment.

Assessing the long-term market impact requires monitoring Edgewise's execution of its commercial and development plans. The successful commercialization of EDG-5506 and advancement of other pipeline assets could lead to increased market share and competitive positioning. Conversely, any delays or failures could have a negative impact on market perception and investor confidence.

BOULDER, Colo.--(BUSINESS WIRE)-- Edgewise Therapeutics, Inc. (NASDAQ: EWTX), a leading muscle disease biopharmaceutical company, today announced the pricing of an underwritten offering of 21,818,182 shares of its common stock at an offering price of $11.00 per share. Edgewise anticipates gross proceeds from the offering to be approximately $240 million, before deducting underwriting discounts and commissions and offering expenses. The closing of the offering is expected to occur on January 23, 2024, subject to the satisfaction of customary closing conditions.

The deal included new investors RA Capital Management, TCGX, and Venrock Healthcare Capital Partners, as well as existing investors Cormorant Asset Management, an affiliate of Deerfield Management Company, Frazier Life Sciences, Janus Henderson Investors, Novo Holdings A/S, Orbimed, Perceptive Advisors and Surveyor Capital (a Citadel company), among other funds. Leerink Partners and Wedbush PacGrow acted as joint book-running managers for the offering.

Edgewise intends to use the net proceeds from the offering to support the potential U.S. commercial launch of EDG-5506 in patients with Becker muscular dystrophy, completion of a Phase 3 trial with EDG-5506 in Duchenne, completion of Phase 2 trials of EDG-7500 in patients with obstructive and non-obstructive hypertrophic cardiomyopathy and the advancement of Edgewise’s ongoing research and development programs, and for working capital and general corporate purposes. The shares are being offered by Edgewise pursuant to a Registration Statement on Form S-3 previously filed with, and declared effective by, the U.S. Securities and Exchange Commission (the SEC). A prospectus supplement and accompanying prospectus relating to the offering will also be filed with the SEC. These documents can be accessed for free through the SEC’s website at www.sec.gov.

When available, a copy of the prospectus supplement and the accompanying prospectus relating to the offering may also be obtained from: Leerink Partners LLC, Attention: Syndicate Department, 53 State Street, 40th Floor, Boston, MA 02109, by telephone at (800) 808-7525, ext. 6105, or by email at syndicate@leerink.com; Wedbush Securities Inc., Attn: ECM Department, 600 Montgomery Street, 29th Floor, San Francisco, CA 94111 or via email at ecm@wedbush.com.

This press release shall not constitute an offer to sell or a solicitation of an offer to buy these securities, nor shall there be any sale of these securities in any state or other jurisdiction in which such offer, solicitation or sale would be unlawful prior to the registration or qualification under the securities laws of any such state or other jurisdiction.

About Edgewise Therapeutics

Edgewise Therapeutics is a leading muscle disease biopharmaceutical company developing novel therapeutics for muscular dystrophies and serious cardiac conditions. The Company’s deep expertise in muscle physiology is driving a new generation of first-in-class therapeutics. EDG-5506 is an orally administered skeletal myosin inhibitor in clinical trials in patients with Becker, Duchenne, and Limb-Girdle muscular dystrophies as well as McArdle Disease. EDG-7500, currently in a Phase 1 trial, is a novel cardiac sarcomere modulator for the treatment of HCM and other disorders of cardiac diastolic dysfunction. The entire team at Edgewise is dedicated to our mission: changing the lives of patients and families affected by serious muscle diseases.

Cautionary Note Regarding Forward-Looking Statements

This press release contains forward-looking statements as that term is defined in Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Statements in this press release that are not purely historical are forward-looking statements. Words such as “believes,” “anticipates,” “plans,” “expects,” “intends,” “will,” “goal,” “potential” and similar expressions are intended to identify forward-looking statements. Such statements are subject to numerous important factors, risks and uncertainties that may cause actual events or results to differ materially from current expectations and beliefs, including but not limited to: general economic and market conditions; satisfaction of customary closing conditions related to the offering; the timing, progress and results of clinical trials for EDG-5506 and EDG-7500; the timing, scope and likelihood of regulatory filings and approvals; and other risks. Information regarding the foregoing and additional risks may be found in the section entitled “Risk Factors” in documents that Edgewise files from time to time with the U.S. Securities and Exchange Commission. These forward-looking statements are made as of the date of this press release, and Edgewise assumes no obligation to update the forward-looking statements, or to update the reasons why actual results could differ from those projected in the forward-looking statements, except as required by law.

View source version on businesswire.com: https://www.businesswire.com/news/home/20240118598176/en/

Edgewise



Investors:

Michael Carruthers, Chief Financial Officer

ir@edgewisetx.com



Media:

Maureen Franco, VP Corporate Communications

media@edgewisetx.com

Source: Edgewise Therapeutics

FAQ

What is the ticker symbol of Edgewise Therapeutics, Inc.?

The ticker symbol of Edgewise Therapeutics, Inc. is EWTX.

How many shares were offered in the underwritten offering?

21,818,182 shares of common stock were offered at an offering price of $11.00 per share.

What is the expected gross proceeds from the offering?

Edgewise anticipates gross proceeds from the offering to be approximately $240 million.

Who are the new investors in the offering?

The new investors in the offering include RA Capital Management, TCGX, and Venrock Healthcare Capital Partners.

What is the intended use of the net proceeds from the offering?

The net proceeds from the offering are intended to support the potential U.S. commercial launch of EDG-5506, completion of clinical trials, and ongoing research and development programs.