Wave Life Sciences said Wednesday that its therapy WVE-006 successfully edited RNA in all trial participants, producing lasting levels of a key protein tied to lower risks of liver and lung disease after repeat 200 mg doses.
Shares of Wave Life Sciences (WVE) tumbled over 19% on Wednesday after the company announced that its WVE-006 led to RNA editing in all participants treated in a trial evaluating the therapy as a treatment for alpha-1-antitrypsin deficiency (AATD).
AATD is an inherited genetic disorder that reduces the production of the AAT protein, which is crucial for protecting the lungs and liver. It is caused by a genetic mutation, and WVE-006 is designed to address the manifestations of AATD by correcting the mutation.
The company announced on Wednesday that WVE-006 resulted in RNA editing in all treated participants, with durable production of serum AAT at levels associated with a lower risk of liver and lung disease following repeat 200 mg doses.
Despite the impressive first demonstration of a dynamic acute phase response post-RNA editing in alpha-1-antitrypsin deficiency, Wave Life’s stock performance suggests the Street expected a greater increase in AAT protein, Leerink said. Leerink raised its price target on Wave Life Sciences to $26 from $24 and kept an ‘Outperform’ rating on the shares.
Leerink further thinks investors should take advantage of this weakness to buy the stock ahead of additional important catalysts, which it remains optimistic investors will appreciate despite today’s confusion.
H.C. Wainwright analyst Andrew Fein, meanwhile, said Wave’s stock decline despite the “encouraging” data was an “overreaction.” The analyst stated that these results strengthen the firm’s conviction that WVE-006 can deliver both lung and liver benefits, and the firm believes the current data, excluding the 400 mg multiple ascending dose data, “still shows an approval endpoint.” The analyst has a ‘Buy’ rating and $22 price target on Wave Life Sciences shares.
Data from both the 200 mg and 400 mg single-dose cohorts support a monthly or less frequent subcutaneous dosing regimen, Wave Life Sciences said. Dosing is ongoing in the 400 mg multidose cohort with a monthly dosing regimen, for which Wave expects to deliver data in the first quarter of 2026. Further, all adverse events observed in the study were mild to moderate in intensity, and there were no serious adverse events or discontinuations, it added.
On Stocktwits, retail sentiment around WVE jumped from ‘bearish’ to ‘extremely bullish’ territory over the past 24 hours while message volume rose from ‘low’ to ‘extremely high’ levels.
GSK has the exclusive global license for WVE-006. Development and commercialization responsibilities will transfer to GSK after Wave completes the study. Wave is eligible for up to $525 million in milestone payments, as well as tiered royalties on net sales, for WVE-006.
WVE stock is down 37% this year but up approximately 40% over the past 12 months.
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