TRADE SETUP

Where do we stand fundamentally?

On February 20, 2025, SpringWorks announced FDA approval for GOMEKLI, a treatment for neurofibromatosis type 1 (NF1) with symptomatic plexiform neurofibromas. The approval included a rare pediatric disease priority review voucher, valued at approximately $100 million. This milestone, along with strong Q4 2024 revenues of $61.5 million from Ogsiveo, has bolstered the company’s financial position.

SpringWorks reported $308 million in cash reserves as of December 2024, with a 19-month cash runway despite a $196 million annual cash burn. The company’s 93% gross margins are impressive, but it remains unprofitable with projected negative earnings per share for the next two fiscal years

SWTX reached the 35 level in a pullback, which could be a retest of the previously broken falling trendline. A bounce here and a break above the 50 level could lead to a substantial extension higher to 65 again.

We need a sustained breakout above 50 for the rally higher to continue. A break below 35 would lead to a reversal lower.

_{I am taking a near-term long-trade entry with an SL below 34 to target 65.}