Is EWTX a good stock to buy? We came across a bullish thesis on Edgewise Therapeutics, Inc. on BioEquity Watch’s Substack. In this article, we will summarize the bulls’ thesis on EWTX. Edgewise Therapeutics, Inc.’s share was trading at $38.83 as of June 23rd.
Pressmaster/Shutterstock.com
Edgewise Therapeutics is positioned as a high-conviction clinical-stage biotech transitioning into a substantially de-risked financial structure following the divestiture of its muscular dystrophy pipeline to Servier for up to $2.65 billion, including $1.55 billion in upfront cash. This transaction meaningfully reshapes the investment profile by establishing a strong net cash floor of roughly $25 per share, significantly limiting downside risk from current levels while providing over $1.8 billion in total liquidity and a multi-year runway exceeding seven years without requiring equity dilution.
Read More: 15 AI Stocks That Are Quietly Making Investors Rich
Read More: Undervalued AI Stock Poised For Massive Gains: 10000% Upside Potential
The company is now a focused cardiovascular play centered on EDG-7500, a selective cardiac sarcomere modulator targeting hypertrophic cardiomyopathy, where early Phase 2 CIRRUS-HCM data has already demonstrated meaningful gradient reduction without dropping ejection fraction below the critical 50% safety threshold seen in competing therapies such as Camzyos.
The upcoming 12-week Phase 2 readout in Q2 2026 represents the primary near-term catalyst, with positive data expected to unlock Phase 3 initiation in the second half of 2026 and drive a significant rerating as investors revalue the pipeline as a pure-play heart disease platform.
Beyond EDG-7500, the company retains exposure to additional cardiovascular expansion opportunities including EDG-15400 for heart failure with preserved ejection fraction, targeting a multi-billion-dollar underserved market. Structurally, Edgewise benefits from strong patent protection extending into the late 2030s and a capital-light development model supported by milestone economics from Servier, which preserves upside optionality while shifting costly neuromuscular development off its balance sheet.
In the bullish scenario, successful Q2 2026 data combined with clean safety outcomes supports rapid progression into late-stage trials and validates competitive superiority, enabling meaningful market share capture in a $10 billion hypertrophic cardiomyopathy market. Under this outcome, the stock could reach the stated target price of $54.00, implying approximately 59.1% upside from current levels, driven by both pipeline re-rating and cash-backed valuation support.
Previously, we covered a bullish thesis on CRISPR Therapeutics AG (CRSP) by MADD-Scientis in March 2025, which highlighted Casgevy commercialization, gene-editing pipeline, and strong cash position. CRSP’s stock price has appreciated by approximately 31.77% since our coverage. BioEquity Watch shares a similar view but emphasizes de-risked cardiovascular pivot and cash-backed valuation in Edgewise Therapeutics (EWTX), focusing on EDG-7500 and near-term clinical catalysts.
Edgewise Therapeutics, Inc. is not on our list of the 40 Most Popular Stocks Among Hedge Funds. As per our database, 45 hedge fund portfolios held EWTX at the end of the first quarter which was 44 in the previous quarter. While we acknowledge the risk and potential of EWTX as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than EWTX and that has 10,000% upside potential, check out our report about this cheapest AI stock.
Disclosure: None.
