Wave data brings questions about Arrowhead ‘back to center stage,’ says Leerink

Leerink analyst Mani Foroohar notes that Wave Life Sciences’ (WVE) updated Phase 1 WVE-007 data showed placebo-adjusted visceral fat loss at the 240mg dose, but total fat mass and lean mass stayed largely consistent and body weight modestly improved. Comparisons between Wave and Arrowhead (ARWR) data are impaired by small numbers of patients, differences in baseline, and other factors, but today’s update and the greater than 50% fall in Wave’s stock price “highlights the degree of optimism baked into INHBE expectations” and brings questions the firm previously raised related to Arrowhead “back to center stage,” the analyst tells investors. The firm, which adds that it is not surprised to see Arrowhead down about 2% as material obesity value is baked in at an $8.5B market cap, has a Market Perform rating on Arrowhead shares.