BOULDER — Edgewise Therapeutics Inc., (Nasdaq: EWTX) tripled research and development expenses in its third quarter, compared with the same period last year, and reported higher losses as it tests drugs that aim to treat rare muscle disorders.
R&D rose to $9.9 million in the period versus $3.2 million in the third quarter of 2020. The clinical-stage pharmaceutical firm attributed about half of the increase to expenses to Phase 1 trials of a drug that could be effective against two types of muscular dystrophies.
“We achieved a significant milestone with our positive topline results from the EDG-5506 Phase 1 MAD study, which support advancing the program into individuals with Becker and Duchenne,” Edgewise president and CEO Kevin Koch said in a press release.
The company expects Phase 2 trials for Becker Muscular Dystrophy patients in the first half of next year and for Duchenne Muscular Dystrophy patients in the second half.
According to the release, the remaining R&D boost was for “increased drug discovery and preclinical development” of future drug candidates and new hiring costs including “stock-based compensation to support the growth of the Company’s research and development programs.”
General and administrative expenses rose to $3.2 million from $400,000 year-over-year for “operating as a public company” and the new labor costs. Edgewise went public in March, raising $202.4 million.
It lost $12.9 million in the quarter, up from $3.6 million year-over-year and reported cash and equivalents of $290 million as of the quarter’s end on Sept. 30.
Pre-clinical efforts involving cardiac muscle modulation and “initially targeting inherited hypertrophic cardiomyopathy” also suggested potentially positive results, Edgewise said.
The company trades at about a $985 million market cap.