Edgewise Therapeutics, Inc. (EWTX), a biopharmaceutical company, Monday announced that it has agreed to sell its muscular dystrophy business and Sevasemten to Servier, an independent pharmaceutical group, for $1.55 billion in cash and up to $1.1 billion in additional milestone payments bringing the total consideration to up to $2.65 billion.
Following the closing of this transaction, the biopharma company will become a cardiovascular focused company, with a pipeline comprising EDG-7500 for hypertrophic cardiomyopathy, EDG-15400 for HFpEF and EDG-003.
As per Edgewise, this deal will strengthen its balance sheet, provide enhanced financial flexibility and sharpen its strategic focus to unlock the full potential of its cardiovascular pipeline.
As per the agreement, Servier will acquire all rights to Sevasemten, including related intellectual property, know-how, key agreements, regulatory filings, and clinical data and all Edgewise employees who primarily support the muscular dystrophy business will receive a comparable offer at Servier to ensure continuity of development and future commercial execution.
Edgewise will use the upfront proceeds from this deal along with its existing cash to fully fund EDG-7500 development through potential approval and provide financial strength to further build and expand its cardiovascular pipeline.
On a separate note, Edgewise reaffirmed that it plans to report 12-week data from Part D of the CIRRUS-HCM Phase 2 trial of EDG-7500 in the second quarter of 2026. The 12-week Part D data, will include safety, echocardiographic, biomarker, and patient-reported outcome assessments across both oHCM and nHCM, are expected to inform the Phase 3 design, with initiation targeted for the fourth quarter of 2026. Parallelly, the company remains on track to initiate a Phase 2 trial of EDG-15400 in heart failure with preserved ejection fraction (HFpEF).
In pre-market activity, EWTX shares were trading at $42, up 22.95% on the Nasdaq.
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