Foresite Capital Exits Edgewise Therapeutics, Reduces Stake by $7.67 Million
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Dec 29 2025
0mins
Should l Buy EWTX?
Source: Fool
- Complete Exit: Foresite Capital fully exited its position in Edgewise Therapeutics during the quarter ending September 30, selling 585,000 shares worth approximately $7.67 million, indicating a cautious outlook on the company's future prospects.
- Asset Allocation Shift: Edgewise previously represented about 4.3% of Foresite's assets under management, and this exit signifies a significant change in risk-reward assessment within the fund's portfolio, potentially impacting the company's future financing capabilities.
- Financial Status: As of the third quarter, Edgewise reported a widened net loss of approximately $40.7 million, primarily driven by increased R&D spending, despite holding around $563 million in cash and marketable securities, highlighting its ongoing investment in clinical-stage programs.
- Market Performance: Edgewise's stock price has declined about 14% over the past year, significantly underperforming the S&P 500's 15.5% gain, reflecting market concerns regarding its commercialization prospects.
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Analyst Views on EWTX
Wall Street analysts forecast EWTX stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for EWTX is 38.14 USD with a low forecast of 16.00 USD and a high forecast of 51.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
9 Analyst Rating
8 Buy
1 Hold
0 Sell
Strong Buy
Current: 27.190
Low
16.00
Averages
38.14
High
51.00
Current: 27.190
Low
16.00
Averages
38.14
High
51.00
About EWTX
Edgewise Therapeutics, Inc. is a muscle disease biopharmaceutical company developing novel therapeutics for muscular dystrophies and serious cardiac conditions. The Company’s lead product candidate, sevasemten (EDG-5506), is an orally administered skeletal myosin inhibitor in late-stage clinical trials in Becker and Duchenne muscular dystrophies. Its EDG-7500 is a novel cardiac sarcomere modulator for the treatment of hypertrophic cardiomyopathy and other diseases of diastolic dysfunction, which is in Phase II clinical development. The Company is using its proprietary drug discovery platform to develop a pipeline of precision medicine product candidates that target key muscle proteins and modulators to address a broad array of serious muscle disorders. Its platform utilizes custom-built high throughput and translatable systems that measure integrated muscle function in whole organ extracts to identify small molecule precision medicines regulating key proteins in muscle tissue.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
iShares U.S. Pharmaceuticals ETF Declines 1.8% on Thursday
- ETF Underperformance: The iShares U.S. Pharmaceuticals ETF fell approximately 1.8% during Thursday afternoon trading, indicating a weak performance that may undermine investor confidence.
- Weak Component Stocks: Among the ETF's weakest performers were Omeros, down about 7%, and Edgewise Therapeutics, down approximately 6.4%, highlighting the overall pressure within the pharmaceutical sector.
- Market Volatility Impact: The overall market volatility on Thursday may have exacerbated investor concerns regarding the pharmaceutical industry, leading to capital outflows that further impacted the ETF's performance.
- Investor Sentiment Shift: As pharmaceutical stocks decline, investors may reassess their investment strategies in the sector, potentially influencing future capital flows and market dynamics.
See More
Edgewise Therapeutics CEO to Present at 44th J.P. Morgan Healthcare Conference
- Conference Presentation: Edgewise Therapeutics CEO Kevin Koch, Ph.D., will present at the 44th J.P. Morgan Healthcare Conference on January 13, 2026, where he is expected to discuss the company's latest advancements in muscle disease treatments, enhancing its visibility in the biopharmaceutical industry.
- Live Webcast: The presentation will be webcast live, allowing users to connect a few minutes prior to ensure timely access, which not only facilitates information dissemination to investors but also strengthens the company's engagement with its stakeholders.
- Product Development: Edgewise is developing Sevasemten, a first-in-class orally administered fast skeletal myosin inhibitor currently in late-stage clinical trials for Becker and Duchenne muscular dystrophies, showcasing the company's innovative potential in muscle disease therapies.
- Cardiac Disease Treatments: The company is also advancing EDG-7500 and EDG-15400 in clinical development for hypertrophic cardiomyopathy and heart failure, respectively, indicating Edgewise's strategic positioning in the cardiac treatment market to meet growing demand.
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Edgewise Grants 119,250 Stock Options to New Employees Under Inducement Plan
- Employee Incentive Program: On December 31, 2025, Edgewise Therapeutics granted 119,250 stock options to four new non-executive employees, aimed at attracting talent and enhancing employee loyalty, aligning with the company's long-term growth strategy.
- Option Details: Each stock option has an exercise price of $24.82 per share, equal to the closing price on the grant date, with 25% vesting on the one-year anniversary of each employee's start date and an additional 1/48th vesting monthly thereafter, ensuring continued employee service.
- Compliance Assurance: The stock option grants comply with Nasdaq Listing Rule 5635(c)(4), ensuring the company's adherence to regulations in attracting and retaining key talent, thereby enhancing market confidence.
- Company Vision: Edgewise focuses on developing innovative therapeutics for muscle diseases and cardiac conditions, and this incentive measure will help attract professionals with relevant expertise, driving the company's research and development efforts.
See More
Foresite Capital Fully Exits Edgewise Therapeutics, Incurring $7.67 Million Loss
- Full Exit: Foresite Capital sold 585,000 shares of Edgewise Therapeutics in Q3, marking a complete exit with an incurred loss of approximately $7.67 million, reflecting a recalibration of risk assessment regarding the company's future prospects.
- AUM Proportion Shift: This transaction reduced Edgewise's representation in Foresite's assets under management from 4.31% to 0%, indicating a strategic reallocation within the fund's investment portfolio that could impact its overall investment strategy.
- Poor Stock Performance: By quarter-end, Edgewise's stock was priced at $24.62, down about 14% year-over-year, significantly underperforming the S&P 500's 15.5% gain during the same period, highlighting market concerns about its future outlook.
- Financial Condition Analysis: Despite reporting approximately $563 million in cash and marketable securities, Edgewise's net losses widened to about $40.7 million in Q3, primarily due to increased R&D spending, indicating challenges in its commercialization efforts.
See More
Foresite Capital Exits Edgewise Therapeutics, Reduces Stake by $7.67 Million
- Complete Exit: Foresite Capital fully exited its position in Edgewise Therapeutics during the quarter ending September 30, selling 585,000 shares worth approximately $7.67 million, indicating a cautious outlook on the company's future prospects.
- Asset Allocation Shift: Edgewise previously represented about 4.3% of Foresite's assets under management, and this exit signifies a significant change in risk-reward assessment within the fund's portfolio, potentially impacting the company's future financing capabilities.
- Financial Status: As of the third quarter, Edgewise reported a widened net loss of approximately $40.7 million, primarily driven by increased R&D spending, despite holding around $563 million in cash and marketable securities, highlighting its ongoing investment in clinical-stage programs.
- Market Performance: Edgewise's stock price has declined about 14% over the past year, significantly underperforming the S&P 500's 15.5% gain, reflecting market concerns regarding its commercialization prospects.
See More
Foresite Capital Fully Exits Edgewise Therapeutics, Incurring $7.67 Million Loss
- Full Exit: Foresite Capital sold 585,000 shares of Edgewise Therapeutics in Q3, marking a complete exit and incurring a loss of approximately $7.67 million, reflecting a cautious outlook on the company's future prospects.
- Declining AUM Proportion: This transaction reduced Edgewise's share in Foresite's assets under management from 4.31% to 0%, indicating a significant portfolio adjustment that may impact the company's financing capabilities.
- Poor Stock Performance: As of Monday, Edgewise's shares were priced at $24.62, down about 14% over the past year, significantly underperforming the S&P 500's 15.5% gain, suggesting a lack of market confidence in its future development.
- Increased R&D Spending: Despite having approximately $563 million in cash and marketable securities, Edgewise reported a net loss of $40.7 million in Q3, primarily due to increased R&D expenditures, highlighting the high-risk investment strategy in advancing clinical projects.
See More
iShares U.S. Pharmaceuticals ETF Declines 1.8% on Thursday
- ETF Underperformance: The iShares U.S. Pharmaceuticals ETF fell approximately 1.8% during Thursday afternoon trading, indicating a weak performance that may undermine investor confidence.
- Weak Component Stocks: Among the ETF's weakest performers were Omeros, down about 7%, and Edgewise Therapeutics, down approximately 6.4%, highlighting the overall pressure within the pharmaceutical sector.
- Market Volatility Impact: The overall market volatility on Thursday may have exacerbated investor concerns regarding the pharmaceutical industry, leading to capital outflows that further impacted the ETF's performance.
- Investor Sentiment Shift: As pharmaceutical stocks decline, investors may reassess their investment strategies in the sector, potentially influencing future capital flows and market dynamics.
See More
Edgewise Therapeutics CEO to Present at 44th J.P. Morgan Healthcare Conference
- Conference Presentation: Edgewise Therapeutics CEO Kevin Koch, Ph.D., will present at the 44th J.P. Morgan Healthcare Conference on January 13, 2026, where he is expected to discuss the company's latest advancements in muscle disease treatments, enhancing its visibility in the biopharmaceutical industry.
- Live Webcast: The presentation will be webcast live, allowing users to connect a few minutes prior to ensure timely access, which not only facilitates information dissemination to investors but also strengthens the company's engagement with its stakeholders.
- Product Development: Edgewise is developing Sevasemten, a first-in-class orally administered fast skeletal myosin inhibitor currently in late-stage clinical trials for Becker and Duchenne muscular dystrophies, showcasing the company's innovative potential in muscle disease therapies.
- Cardiac Disease Treatments: The company is also advancing EDG-7500 and EDG-15400 in clinical development for hypertrophic cardiomyopathy and heart failure, respectively, indicating Edgewise's strategic positioning in the cardiac treatment market to meet growing demand.
See More
Edgewise Grants 119,250 Stock Options to New Employees Under Inducement Plan
- Employee Incentive Program: On December 31, 2025, Edgewise Therapeutics granted 119,250 stock options to four new non-executive employees, aimed at attracting talent and enhancing employee loyalty, aligning with the company's long-term growth strategy.
- Option Details: Each stock option has an exercise price of $24.82 per share, equal to the closing price on the grant date, with 25% vesting on the one-year anniversary of each employee's start date and an additional 1/48th vesting monthly thereafter, ensuring continued employee service.
- Compliance Assurance: The stock option grants comply with Nasdaq Listing Rule 5635(c)(4), ensuring the company's adherence to regulations in attracting and retaining key talent, thereby enhancing market confidence.
- Company Vision: Edgewise focuses on developing innovative therapeutics for muscle diseases and cardiac conditions, and this incentive measure will help attract professionals with relevant expertise, driving the company's research and development efforts.
See More
Foresite Capital Fully Exits Edgewise Therapeutics, Incurring $7.67 Million Loss
- Full Exit: Foresite Capital sold 585,000 shares of Edgewise Therapeutics in Q3, marking a complete exit with an incurred loss of approximately $7.67 million, reflecting a recalibration of risk assessment regarding the company's future prospects.
- AUM Proportion Shift: This transaction reduced Edgewise's representation in Foresite's assets under management from 4.31% to 0%, indicating a strategic reallocation within the fund's investment portfolio that could impact its overall investment strategy.
- Poor Stock Performance: By quarter-end, Edgewise's stock was priced at $24.62, down about 14% year-over-year, significantly underperforming the S&P 500's 15.5% gain during the same period, highlighting market concerns about its future outlook.
- Financial Condition Analysis: Despite reporting approximately $563 million in cash and marketable securities, Edgewise's net losses widened to about $40.7 million in Q3, primarily due to increased R&D spending, indicating challenges in its commercialization efforts.
See More
Foresite Capital Exits Edgewise Therapeutics, Reduces Stake by $7.67 Million
- Complete Exit: Foresite Capital fully exited its position in Edgewise Therapeutics during the quarter ending September 30, selling 585,000 shares worth approximately $7.67 million, indicating a cautious outlook on the company's future prospects.
- Asset Allocation Shift: Edgewise previously represented about 4.3% of Foresite's assets under management, and this exit signifies a significant change in risk-reward assessment within the fund's portfolio, potentially impacting the company's future financing capabilities.
- Financial Status: As of the third quarter, Edgewise reported a widened net loss of approximately $40.7 million, primarily driven by increased R&D spending, despite holding around $563 million in cash and marketable securities, highlighting its ongoing investment in clinical-stage programs.
- Market Performance: Edgewise's stock price has declined about 14% over the past year, significantly underperforming the S&P 500's 15.5% gain, reflecting market concerns regarding its commercialization prospects.
See More
Foresite Capital Fully Exits Edgewise Therapeutics, Incurring $7.67 Million Loss
- Full Exit: Foresite Capital sold 585,000 shares of Edgewise Therapeutics in Q3, marking a complete exit and incurring a loss of approximately $7.67 million, reflecting a cautious outlook on the company's future prospects.
- Declining AUM Proportion: This transaction reduced Edgewise's share in Foresite's assets under management from 4.31% to 0%, indicating a significant portfolio adjustment that may impact the company's financing capabilities.
- Poor Stock Performance: As of Monday, Edgewise's shares were priced at $24.62, down about 14% over the past year, significantly underperforming the S&P 500's 15.5% gain, suggesting a lack of market confidence in its future development.
- Increased R&D Spending: Despite having approximately $563 million in cash and marketable securities, Edgewise reported a net loss of $40.7 million in Q3, primarily due to increased R&D expenditures, highlighting the high-risk investment strategy in advancing clinical projects.
See More
