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Key Takeaways
- Edgewise Therapeutics’ shares plunged sharply on Wednesday after the release of data from its latest clinical study.
- The drug achieved its main goal but side effects reported from some patients raised concern.
- Shares of Cytokinetics, one of Edgewise's competitors, surged in response.
Edgewise Therapeutics’ (EWTX), the developer drug company, released the results of its most recent clinical trial. Shares of the company fell by more than 20 percent on Wednesday.
The company has released the results of the Phase 2 trial of EDG-7500. This drug is used to treat Hypertrophic cardiomyopathy (HCM), which is a condition characterized by thickened heart muscle. This can make it harder for the heart pump blood efficiently.
Edgewise said the drug largely accomplished its goal of reducing left ventricular outflow tract gradient (LVOT-G)–a metric that measures how difficult it is for the heart to pump blood–"without meaningful changes in left ventricular ejection fraction (LVEF)."
Side Effects Weigh
However, the drug's side effects have overshadowed the positive results. Dizziness and upper respiratory infections were the most common adverse effects, followed by atrial fibrillation or irregular heartbeat. However, "two participants experienced serious adverse events of AF requiring cardioversion," or treatment to get a heart back to a normal rhythm.
The company stated that the rate of patients experiencing AF was in line with similar studies using other drugs. According to Investor's Business Daily, RBC Capital Markets analyst Leonid Timashev wrote in a note, "The fact that two were serious is a complexity that could prompt the FDA to review this closely."
Cytokinetics’ (CYTK) shares, which are working on a rival drug, jumped by 10% in response to the disappointing results for Edgewise. Edgewise shares were down by 21%.
