RBC Capital says buy Edgewise Therapeutics after EDG-7500 data

Edgewise Therapeutics this morning reported data from EDG-7500 in healthy subjects and the single-dose arm of the Phase 2 CIRRUS-HCM trial in patients with obstructive HCM, showing a reduction in resting gradient and no meaningful changes in left ventricular systolic function, clearing management’s bar of 50% LVOT-G reduction, RBC Capital tells investors in a research note. The firm thinks the data shows clear activity of ‘7500 and begins to show the drug is differentiated from the current CMIs, which could help position the drug favorably in a future competitive landscape despite being a later entrant. Given the data approaches a blue sky scenario, RBC Capital, which made no change to its Outperform rating or $32 price target, would be buyers of Edgewise and thinks shares could be up as much as 30%-50%.