SpringWorks Therapeutics Gains Retail Interest Ahead Of Q4 Earnings – What Investors Expect

SpringWorks Therapeutics Inc. (SWTX) shares surged more than 10% in Wednesday’s after-hours, signaling strong investor optimism ahead of its quarterly earnings report due after the next session.

The biopharmaceutical company, focused on treatments for rare diseases and cancer, is expected to report a narrowing of fourth-quarter (Q4) adjusted losses to $0.71 per share from $1.44 a year earlier. 

Meanwhile, revenue is projected to soar to $57.16 million from $5.4 million.

On Stocktwits, sentiment remained firmly bullish, though message volumes dipped slightly.

The stock’s retail following grew over 2% in the past week and more than 26% in the past month.

Users noted that after-hours trading volumes spiked well above the daily average, signaling heightened interest.

One trader posted: “Yet another sleepless night ahead. I hope this is the last, and we can all celebrate.”

Recent investor enthusiasm has been fueled by reports that German healthcare giant Merck KGaA is in advanced talks to acquire SpringWorks. While no official confirmation has been made, there are hopes that a potential deal could be signed in the coming weeks.

Last week, BofA Securities raised its price target on SWTX to $87 from $65, maintaining a Buy rating. The research firm cited FDA approval for SpringWorks’ lead asset, Gomekli, as a key growth driver.

Gomekli, a MEK inhibitor, treats neurofibromatosis type 1 (NF1), a rare genetic disorder that causes tumor growth in nerve tissue.

In addition, SpringWorks’ first FDA-approved drug, Ogsiveo, is already available in the U.S. for adult desmoid tumor patients requiring systemic treatment. Last month, the company pre-announced Q4 U.S. Ogsiveo sales of $61.5 million.

Despite the bullish momentum, short interest on SpringWorks stock climbed from 15.7% at the start of the year to 19.4% last week, according to Koyfin data.

Still, SWTX shares have surged over 53% year-to-date, far outpacing the S&P 500’s 4.7% gain.

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