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# Edgewise Posts $1.17 Billion Quarterly Profit On Drug Sale, Operations Still Lose $46.1 Million
- URL: https://www.bullished.co/edgewise-posts-1-17-billion-quarterly-profit-on-drug-sale-operations-still-lose-46-1-c5eb45ac/
- Published: 2026-11-04T23:38:22.000Z
- Updated: 2026-11-04T23:38:22.000Z
- Description: A $1.348 billion gain on selling sevasemten to Servier lifted third-quarter net income, and cash and securities reached about $1,743.9 million.
- Author: Matteo Parrino
- Tags: Earnings, EWTX, Industry: Healthcare

[Edgewise Therapeutics](https://www.bullished.co/tag/ewtx/), a biopharmaceutical company developing small-molecule medicines for muscle and heart disease, reported third-quarter [net income of $1,166.2 million](https://www.sec.gov/Archives/edgar/data/0001710072/000110465926122654/tm2628556d1%5Fex99-1.htm?ref=bullished.co) on Wednesday, against a $40.7 million loss a year earlier. The swing came from a one-time gain on selling its sevasemten program to Servier; operations alone lost $46.1 million.

## A sale gain, not operations

Net income worked out to $10.71 per basic share and $9.65 per diluted share, the company said in an [8-K](https://www.sec.gov/Archives/edgar/data/0001710072/000110465926122654/tm2628556d1%5F8k.htm?ref=bullished.co). A year earlier the loss was $0.39 per share.

The gain on the sevasemten sale was $1.348 billion. Edgewise said it reflects the sale of the program and muscular dystrophy business to Servier, which closed in July, net of the carrying value of transferred assets, transaction costs and consideration allocated to transition services. The company received $1.396 billion in upfront cash at closing. Income tax expense tied to the transaction was $155.3 million.

Total operating expenses were $46.1 million, against $46.9 million a year earlier. Research spending fell to [$31.6 million](https://finance.yahoo.com/healthcare/articles/edgewise-therapeutics-reports-third-quarter-210100360.html?ref=bullished.co) from $37.5 million, mainly on lower sevasemten costs after the sale, partly offset by higher spending on EDG-7500, discovery and preclinical work, and personnel. General and administrative costs rose to $14.6 million from $9.4 million, on personnel costs including stock-based pay, as the company expanded its capabilities for clinical development.

## A $1.74 billion cash pile

Cash, equivalents and marketable securities stood at about [$1,743.9 million](https://finance.yahoo.com/healthcare/articles/edgewise-therapeutics-reports-third-quarter-210100360.html?ref=bullished.co) at September 30, up from $530.1 million at December 31\. Stockholders' equity was $1,632.7 million, versus $522.3 million at year-end.

Weighted-average diluted shares were 120,874,085, compared with 105,492,779 a year earlier.

## A heart-focused pipeline

Edgewise now describes itself as a cardiovascular company. EDG-7500, an oral drug for hypertrophic cardiomyopathy, a heart muscle disease, produced positive results in an open-label Phase 2 part in August, and the company expects to start a Phase 3 trial by the end of 2026\. It also dosed the first patient in a Phase 2 trial of EDG-15400 in heart failure with preserved ejection fraction.

Servier has since reported that the pivotal Becker muscular dystrophy trial of sevasemten [missed its primary and secondary endpoints](https://www.fiercebiotech.com/biotech/serviers-155b-muscular-dystrophy-bet-delivers-quick-fire-pivotal-failure?ref=bullished.co), according to Fierce Biotech. The deal carried up to $1.1 billion in milestones, and Fierce Biotech's analysis says the failure lowers Edgewise's odds of collecting more of them.

Edgewise has said the EDG-7500 Phase 3 trial in hypertrophic cardiomyopathy is on track to begin by the end of 2026.

Learn

- [Item 2.02: results of operations →](https://www.bullished.co/learn/8-k-items-explained/#item-202-results-of-operations)  
From 8-K Items Explained: What Every Item Code From 1.01 To 9.01 Tells You, With Examples

### Sources

- [8-K Filing — Edgewise Therapeutics, Inc. (EWTX)](https://www.sec.gov/Archives/edgar/data/0001710072/000110465926122654/tm2628556d1%5F8k.htm?ref=bullished.co) — SEC EDGAR
- [Exhibit tm2628556d1\_ex99-1.htm — Edgewise Therapeutics, Inc. 8-K exhibit](https://www.sec.gov/Archives/edgar/data/0001710072/000110465926122654/tm2628556d1%5Fex99-1.htm?ref=bullished.co) — SEC EDGAR
- [Edgewise Therapeutics Reports Third Quarter 2026 Financial Results](https://finance.yahoo.com/healthcare/articles/edgewise-therapeutics-reports-third-quarter-210100360.html?ref=bullished.co) — Yahoo Finance
- [Servier’s $1.55B muscular dystrophy bet fails pivotal test](https://www.fiercebiotech.com/biotech/serviers-155b-muscular-dystrophy-bet-delivers-quick-fire-pivotal-failure?ref=bullished.co) — fiercebiotech.com

### More on Edgewise Therapeutics

- [Edgewise Books $1.35 Billion Gain On Sevasemten Sale Hours After Servier's Pivotal Trial Fails](https://www.bullished.co/edgewise-books-1-35-billion-gain-on-sevasemten-sale-hours-after-serviers-pivotal-trial-45aa0ee0/)

[All Edgewise Therapeutics (EWTX) coverage →](https://www.bullished.co/tag/ewtx/)