Edgewise Therapeutics, Inc. has recently released its 10-K report, providing an overview of its business and financial performance. The company, established in 2017 and headquartered in Boulder, Colorado, is a biopharmaceutical firm focused on discovering, developing, and commercializing therapies for muscle disorders. Its lead product candidate, EDG-5506, is an orally administered small molecule in Phase II clinical trials, targeting dystrophinopathies such as Duchenne muscular dystrophy and Becker muscular dystrophy, while also developing EDG-7500 for hypertrophic cardiomyopathy and other severe cardiac disorders.
Financially, the company reported a net loss of $100.2 million for the year ended December 31, 2023, compared to $67.6 million in 2022. The increase in net loss was primarily driven by higher research and development expenses, which amounted to $90.9 million in 2023, up from $54.0 million in 2022. This increase in research and development expenses was attributed to higher costs related to the EDG-5506 clinical program, including increased clinical trial activity and product candidate manufacturing costs. Additionally, internal costs, including personnel-related expenses, saw a significant increase due to the growth of research and development programs.
General and administrative expenses also rose to $23.5 million in 2023, compared to $17.6 million in 2022, primarily due to increased personnel-related costs and professional and consulting expenses, partly offset by a decrease in directors’ and officers’ insurance expenses.
However, the company's interest income showed a significant increase, reaching $14.2 million in 2023, compared to $4.0 million in 2022, primarily due to higher balances for marketable securities and higher interest rates.
In terms of liquidity and capital resources, Edgewise Therapeutics has financed its operations primarily through private placements of convertible preferred stock and public offerings of its common stock, generating gross proceeds of $160.7 million and net proceeds of $367.8 million, respectively. As of December 31, 2023, the company had cash and cash equivalents, as well as marketable securities, totaling $318.4 million, which is expected to fund its planned operating expenses and capital expenditure requirements for at least the next 12 months.
Overall, Edgewise Therapeutics continues to incur significant losses as it advances its product candidates through preclinical development and clinical trials. The company remains focused on its precision medicine muscle platform and aims to build a leading global biopharmaceutical company dedicated to improving the lives of people suffering from muscle diseases. Today the company's shares have moved -0.7% to a price of $17.37. For more information, read the company's full 10-K submission here.
