Key Highlights

  • Diluted EPS was USD 9.65 against an estimate of USD -0.52, on Net Income of USD 1,166.2 million.
  • A USD 1,348.1 million gain on the sevasemten sale to Servier closed on July 10, 2026.
  • Cash, cash equivalents and marketable securities were USD 1,743.9 million at September 30, against USD 530.1 million at year end.
  • Research and development expense was USD 31.6 million against USD 37.5 million, and an EDG-7500 Phase 3 start is planned.

Edgewise Therapeutics (NASDAQ:EWTX) reported a third quarter shaped by one transaction. The sale of sevasemten and its muscular dystrophy program to Servier closed on July 10, 2026, and the resulting gain of USD 1,348.1 million moved the company from a loss to net income of USD 1,166.2 million. Diluted EPS was USD 9.65 against an estimate of USD -0.52, and basic EPS was USD 10.71. The company has no product revenue.

The Sevasemten Sale and Its Terms

Servier paid USD 1,396.1 million in upfront cash, and a further USD 153.9 million was placed in escrow, for total initial proceeds of USD 1,550.0 million. Edgewise is also eligible for up to USD 1,100.0 million in milestone payments, for aggregate potential consideration of up to USD 2,650.0 million. Transaction Costs of about USD 50.9 million reduced the gain.

None of the contingent milestone consideration has been recorded, which the company attributed to regulatory and commercial uncertainty outside its control. On November 3, 2026, Servier announced that the pivotal GRAND CANYON study of sevasemten in Becker muscular dystrophy did not meet its primary or secondary endpoints, and Servier is conducting further analysis.

Income Statement Around the Gain

Operating expenses were USD 46.1 million against USD 46.9 million. Research and Development expense was USD 31.6 million against USD 37.5 million, with sevasemten program spending of USD 2.5 million against USD 13.6 million after the sale. General and administrative expense was USD 14.6 million against USD 9.4 million.

Interest income was USD 16.5 million against USD 6.2 million, and other income of USD 3.1 million came mainly from transition services provided to Servier. Income before tax was USD 1,321.5 million. Income tax expense was USD 155.3 million, which the company linked to the gain, at an effective rate of 11.8%. For the nine months, net income was USD 1,059.8 million and diluted EPS was USD 8.86, against a net loss of USD 117.6 million and a loss of USD 1.15 per share a year earlier.

Cardiovascular Pipeline After the Sale

The company now describes itself as a cardiovascular-focused clinical-stage biopharmaceutical business. Its lead program, EDG-7500, is an oral cardiac sarcomere modulator for hypertrophic cardiomyopathy, and the company announced positive topline data from the 12-week Part D portion of its multipart Phase 2 trial. It plans to start a Phase 3 trial in the fourth quarter of 2026. EDG-7500 program expense was USD 6.8 million against USD 4.5 million.

The second candidate, EDG-15400, is in a Phase 2 trial in adults with symptomatic heart failure with preserved ejection fraction; the EQUINOX-HFpEF trial began in the third quarter.

Balance Sheet and Funding Statement

Cash, cash equivalents and marketable securities rose to USD 1,743.9 million from USD 530.1 million at year end 2025. Nine-month operating cash use was USD 163.3 million against USD 105.2 million. Management said these resources fund planned operating and capital expenditures for at least the next 12 months. The company gave no financial guidance.

Data Points to Watch

Diluted EPS of USD 9.65 sits alongside a gain of USD 1,348.1 million, cash and securities of USD 1,743.9 million and quarterly operating expenses of USD 46.1 million.

Dated and conditional items management named include the fourth quarter 2026 start of the EDG-7500 Phase 3 trial, the USD 153.9 million held in escrow, the transition services period with Servier, and up to USD 1,100.0 million of milestones tied to sevasemten regulatory and commercial events.