Leerink says Wave Life Sciences selloff ‘very overdone’ after early obesity data

Leerink analyst Joseph Schwartz notes Wave Life Sciences (WVE) reported data from the Phase 1 INLIGHT study of WVE-007 in obesity that may be disappointing on the surface, driving this morning’s stock reaction. However, the firm likes the continued improvement in visceral fat reduction at 240 mg after six months as well as the larger reduction on waist circumference and measurable body weight reduction in this lower BMI subgroup. Investors are likely discouraged by the 400 mg data at three months, which look similar on visceral fat as 240 mg and not as good on total fat and lean mass, though there appear to be some differences in the baseline BMI and body composition of this cohort that could explain some of these observations, Leerink adds. The stock’s reaction premarket seems to remove all value for WVE-007, which is “very overdone,” in the firm’s opinion. Leerink has an Outperform rating on the shares.