Edgewise Therapeutics stock skyrocketed to a three-year high on Thursday after a single dose of its drug improved heart function in cardiomyopathy patients.
The biotech company tested its drug, EDG-7500, in healthy volunteers and patients with obstructive hypertrophic cardiomyopathy. In this disease, a genetic mutation causes the heart ventricles to thicken. This limits cardiac function and exercise capacity.
After a single dose, patients showed improved blood flow from the left ventricle. But sometimes drugs can do their job too well, suppressing cardiac function — a measure known as reduced left ventricular ejection fraction, or LVEF. But patients didn't show meaningful reductions in LVEF.
Edgewise Therapeutics stock soared 54.7%, closing at 29.50. Shares opened at their highest point since June 2021. Edgewise stock has a nearly perfect IBD Digital Relative Strength Rating of 98, putting it in the leading 2% of all stocks in terms of 12-month performance.
Meanwhile, shares of Cytokinetics, slipped 0.6% to 55.60. Cytokinetics is working on an experimental drug for the same condition. Bristol Myers Squibb, which sells the only approved treatment for the disease, fell 1.5%, closing at 49.02.
Edgewise Hopes to Edge Out Cytokinetics, Bristol
Edgewise tested three doses of EDG-7500 in patients with obstructive HCM. At the two higher doses, patients showed an average reduction in left ventricular outflow tract pressure gradient. High LVOT signals the heart is working hard to pump blood and is a predictor of heart failure.
But, promisingly, this was achieved without leading to a meaningful change in LVEF. Essentially, this means the heart didn't do its job too well and over-suppress cardiac function.
The results "support the hypothesis that LVOT gradient reductions can be decoupled from LVEF declines with EDG-7500," Wedbush analyst Laura Chico said in a report. "We do think repeat-dosing data will better inform on the drug's (effectiveness)/safety profile, but this initial data cut puts it on solid footing, and we anticipate shares will react positively."
Chico has an outperform rating and 31 price target on Edgewise stock.
The results top Edgewise Therapeutics' own expectations for one dose to lower LVOT pressure gradient by at least 50% with minimal impact on LVEF.
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