CYTK Stock Jumped To Over 2-Year Highs On HCM Trial Outcome – So, Why Are Analysts Bullish On Edgewise Therapeutics?

• Several secondary measures, including heart function and symptom severity, also improved meaningfully.
• Truist raised its price target on Cytokinetics to $106 from $92 following the trial update and maintained a ‘Buy’ rating, according to The Fly.
• Stifel said CYTK’s phase 3 trial outcome proves the class of drugs works, though Edgewise’s EDG-7500 is ‘best-positioned.’

Shares of Cytokinetics (CYTK) soared more than 16% on Tuesday, climbing to its highest level in over two years, as investor enthusiasm surged following strong late-stage trial results for a treatment targeting a serious heart condition linked to sudden cardiac arrest.

Truist raised its price target on Cytokinetics to $106 from $92 following the trial update and maintained a ‘Buy’ rating, according to The Fly.

CYTK’s Aficamten Meets Primary Endpoints

The company said its drug Aficamten for patients with symptomatic non-obstructive hypertrophic cardiomyopathy (HCM) met both primary endpoints, showing significant improvements in health-related quality of life and exercise capacity compared with placebo at 36 weeks.

Several secondary measures, including heart function and symptom severity, also improved meaningfully. The treatment was generally well tolerated, with no new safety concerns identified.

Completion rates were similar between the Aficamten and placebo groups, though reduced heart function was seen in 10% of patients on the drug.

CYTK Vs EWTX: Analysts’ View

Raymond James said Cytokinetics’ positive Phase 3 result for Aficamten bodes well for Edgewise Therapeutics (EWTX). The firm said Edgewise’s EDG-7500 therapy may be even better suited to target the underlying heart condition and considers it one of the most compelling assets currently in development for HCM. The firm has a ‘Strong Buy’ rating on Edgewise.

Stifel also said that CYTK’s phase 3 trial outcome could be a positive setup for Edgewise, supporting the view that this class of drugs works, though EDG-7500 is “best-positioned”. However, the firm cautioned that questions around safety and how these drugs compare to each other will “take time to answer in the backdrop of an increasingly competitive landscape.” 

Stifel has a ‘Buy’ rating on Cytokinetics and a ‘Hold’ on Edgewise. EWTX shares gained 18% to their highest in over five years.

Retail Sees Strong Upside In CYTK’s Stock Price

Retail sentiment for CYTK on Stocktwits turned ‘extremely bullish’ from ‘bullish’ a day earlier, amid ‘extremely high’ message volumes. Sentiment for EWTX was ‘neutral.’

One user said CYTK stock’s upside is “insane and mostly derisked.”

Another user said the FDA’s approval for CYTK’s therapy is “almost guaranteed.”

Both stocks have seen strong growth so far this year. While CYTK has added around 22%, EWTX gains are nearly double at 42%.

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