Education
About Us
Working with TipRanks
Follow Us
Wave Life Sciences Pte. Ltd (WVE)
:WVE
Top Page
Wave Life Sciences
(NASDAQ:WVE)
51Neutral
Positive Factors
Commercial Prospects
The commercial prospects of this program are promising since siRNA has the potential to be dosed just a few times per year.
Muscle Franchise
Wave's PN chemistry in the DMD program shows good pharmacokinetics and muscle exposure, indicating potential for a 'muscle franchise'.
RNA Editing Platform
The RNA editing platform has shown promise, with early human trials indicating increased levels of a key protein, suggesting effectiveness.
Negative Factors
Clinical Data
There is limited clinical data from WVE, pointing to a need for more evidence to support their approach.
Obesity Target
The value proposition of the obesity target INHBE is uncertain, with low conviction in profound weight loss.
Wave Life Sciences (WVE) vs. S&P 500 (SPY)
Market Cap
$1.19B
Dividend YieldN/A
Average Volume (3M)1.53M
Price to Earnings (P/E)―
Beta (1Y)1.73
Revenue Growth-4.42%
EPS Growth-42.17%
CountryUS
Employees287
SectorHealthcare
Sector Strength69
IndustryBiotechnology
Share Statistics
EPS (TTM)-0.79
Shares Outstanding154,089,700
10 Day Avg. Volume1,324,492
30 Day Avg. Volume1,529,548
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)0.00
Price to Cash Flow (P/CF)0.00
P/FCF Ratio0.00
Enterprise Value/Market Cap1.57
Enterprise Value/RevenueN/A
Enterprise Value/Gross Profit17.20
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$19.20Price Target Upside148.70% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering11
Wave Life Sciences Business Overview & Revenue Model
Company DescriptionWave Life Sciences (WVE) is a biotechnology company that focuses on the discovery and development of stereopure oligonucleotide therapeutics. The company's approach is based on its proprietary platform, which is designed to deliver highly selective and precisely targeted medicines for genetic diseases. Wave Life Sciences operates primarily in the pharmaceutical and biotechnology sectors, aiming to address rare and genetic disorders through its innovative therapeutic solutions.
How the Company Makes MoneyWave Life Sciences generates revenue primarily through strategic collaborations and partnerships with other pharmaceutical and biotechnology companies. These partnerships often involve milestone payments, research funding, and royalties based on the successful development and commercialization of therapies. Additionally, the company may receive government grants or funding to support its research activities. Licensing agreements for its proprietary technologies and therapeutic candidates also contribute to its revenue streams. As Wave Life Sciences advances its clinical programs, it aims to achieve regulatory approvals and commercial sales of its products, which will further drive its revenue growth.
Wave Life Sciences Financial Statement Overview
Summary
Wave Life Sciences faces significant financial challenges, with persistent losses and negative cash flows. Despite a strengthening balance sheet with increasing stockholders' equity, the company's operational and cash flow issues pose risks to long-term sustainability. Strategic improvements in revenue growth and cost management are essential to enhance financial health.Income Statement
Wave Life Sciences has shown volatile revenue trends with significant annual fluctuations, notably a decline from 2023 to 2024. The company consistently reports negative net income, resulting in negative net profit margins. The gross profit margin is positive due to total revenue exceeding cost of goods sold. However, operating metrics like EBIT and EBITDA margins are negative, indicating operational challenges.45
Neutral
Balance Sheet
The balance sheet reveals an improving equity position, moving from negative to positive stockholders' equity in recent years. The debt-to-equity ratio has improved with increasing equity, yet the company still faces high total liabilities compared to its assets. This highlights a cautious position in terms of financial stability.50
Neutral
Cash Flow
Operating cash flow remains negative, reflecting ongoing cash burn in operations. Free cash flow is similarly negative, indicating challenges in generating cash from operations after capital expenditures. The company relies heavily on financing activities to support its cash needs, posing potential risks in sustainability without improving operational cash flows.40
Negative
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 108.30M | 113.31M | 3.65M | 40.96M | 20.08M | Gross Profit |
| 108.30M | 104.10M | -6.46M | -80.91M | -104.09M | EBIT |
| -110.40M | -68.00M | -162.72M | -127.02M | -153.38M | EBITDA |
| -110.40M | -58.79M | -152.61M | -117.18M | -143.39M | Net Income Common Stockholders |
| -97.01M | -57.51M | -161.82M | -122.25M | -149.91M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 302.08M | 200.35M | 88.50M | 150.56M | 184.50M | Total Assets |
| 352.21M | 274.95M | 146.39M | 207.01M | 279.24M | Total Debt |
| 25.40M | 32.12M | 37.61M | 29.92M | 29.30M | Net Debt |
| -276.67M | -168.23M | -50.88M | -120.65M | -155.19M | Total Liabilities |
| 142.69M | 227.44M | 191.48M | 174.51M | 196.46M | Stockholders Equity |
| 209.51M | 47.50M | -45.09M | 32.50M | 82.78M |
| Cash Flow | Free Cash Flow | |||
| -151.03M | -20.55M | -129.14M | -89.55M | -117.32M | Operating Cash Flow |
| -151.03M | -19.43M | -127.78M | -88.99M | -115.98M | Investing Cash Flow |
| -938.00K | -1.11M | -1.25M | -560.00K | -1.34M | Financing Cash Flow |
| 253.89M | 132.53M | 67.19M | 55.83M | 154.54M |
Wave Life Sciences Technical Analysis
Negative
7.72
Price Trends
8.57
Negative
10.54
Negative
9.90
Negative
Market Momentum
-0.39
Negative
55.09
Neutral
84.14
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For WVE, the sentiment is Negative. The current price of 7.72 is above the 20-day moving average (MA) of 6.39, below the 50-day MA of 8.57, and below the 200-day MA of 9.90, indicating a neutral trend. The MACD of -0.39 indicates Negative momentum. The RSI at 55.09 is Neutral, neither overbought nor oversold. The STOCH value of 84.14 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for WVE.
Wave Life Sciences Risk Analysis
Wave Life Sciences disclosed 73 risk factors in its most recent earnings report. Wave Life Sciences reported the most risks in the “Tech & Innovation” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Wave Life Sciences Peers Comparison
Overall Rating
UnderperformOutperform
Sector (51)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
51 Neutral | $5.35B | 3.41 | -40.83% | 2.89% | 18.11% | 2.60% | |
51 Neutral | $1.19B | ― | -73.24% | ― | -4.42% | -42.17% | |
48 Neutral | $1.15B | ― | -75.69% | ― | ― | -25.83% | |
43 Neutral | $1.28B | ― | -88.03% | ― | ― | 14.93% | |
43 Neutral | $891.68M | ― | -66.09% | ― | 32387.34% | 15.93% | |
41 Neutral | $1.10B | ― | -45.77% | ― | -3.82% | 29.10% | |
31 Underperform | $1.35B | ― | -18.61% | ― | ― | 7.57% |
* Healthcare Sector Average
Performance Comparison
WVE
Wave Life Sciences
7.72
2.05
36.16%
GERN
Geron
1.41
-2.67
-65.44%
VRDN
Viridian Therapeutics
13.55
-0.26
-1.88%
SNDX
Syndax Pharmaceuticals
14.15
-7.82
-35.59%
DYN
Dyne Therapeutics
11.79
-14.04
-54.36%
GPCR
Structure Therapeutics, Inc. Sponsored ADR
27.00
-12.32
-31.33%
Wave Life Sciences Earnings Call Summary
Earnings Call Date:Mar 04, 2025
(Q4-2024)
| % Change Since: -23.18%|
Next Earnings Date:May 08, 2025
Earnings Call Sentiment Positive
The earnings call highlighted several positive developments, including advancements in clinical programs, a strong financial position, and innovative breakthroughs in RNA editing. However, there were notable challenges such as increased R&D expenses and a net loss for the year. The sentiment is overall positive due to the significant progress and potential of the pipeline.Q4-2024 Updates
Positive Updates
Positive Clinical Data and Pipeline Expansion
Wave Life Sciences announced positive data for its AATD, DMD, and HD clinical programs, derisked a new modality with RNA editing, and expanded its pipeline with high-impact programs.
Advancement of WVE-007 for Obesity
WVE-007, a GalNAc siRNA for obesity, advanced to the clinic and completed enrollment in the first cohort of the in-light clinical trial.
Strong Financial Position
The company ended the year with $302.1 million in cash and cash equivalents, an increase from $200.4 million the previous year, enabling funding operations into 2027.
Demonstrated RNA Editing in Humans
The Restoration clinical program showed the first-ever clinical demonstration of RNA editing in humans with WVE-006, showing an increase in AAT from baseline.
Progress in Huntington's Disease Treatment
WVE-003 showed potent and durable mutant huntingtin reductions and a statistically significant correlation with slowing of caudate atrophy in Huntington's disease.
Negative Updates
Increased R&D Expenses
Research and Development expenses increased to $159.7 million in 2024 from $130.0 million in 2023, primarily due to spending on new programs.
Net Loss for the Full Year
The company reported a net loss of $96.7 million for 2024, an increase from $57.5 million in 2023.
Challenges with GLP-1 Agonists
GLP-1 drugs face limitations such as frequent dosing and loss of muscle mass, impacting the obesity treatment landscape.
Company Guidance
During the Wave Life Sciences Fourth Quarter and Full Year 2024 Earnings Conference Call, significant progress was highlighted in their RNA medicines programs. Key metrics include revenues of $83.7 million for Q4 2024, an increase from $29.1 million in Q4 2023, and a full year net income of $29 million, compared to a net loss of $16.3 million in 2023. Research and development expenses rose to $44.6 million for Q4 2024 from $34.1 million in the prior year, driven by new programs. The company ended the year with $302.1 million in cash and cash equivalents, up from $200.4 million in 2023, providing a cash runway into 2027. Clinical advancements included completing enrollment in the first cohort for the obesity treatment WVE-007 and promising data for the AATD program WVE-006, showing potential as a front-line treatment.Wave Life Sciences Corporate Events
Product-Related AnnouncementsBusiness Operations and Strategy
Wave Life Sciences Reports Positive Phase 2 Trial Results
Positive
Mar 26, 2025
On March 26, 2025, Wave Life Sciences announced positive results from their Phase 2 FORWARD-53 clinical trial for WVE-N531, a treatment for exon 53 amenable Duchenne muscular dystrophy. The trial showed significant improvements in muscle health and function, with a notable 3.8-second improvement in Time-to-Rise and a reduction in muscle damage indicators. The company plans to file a New Drug Application in 2026 for accelerated approval, aiming to position WVE-N531 as a first-line treatment for exon 53 skipping in DMD, potentially addressing a significant unmet need in the market.
Business Operations and StrategyFinancial Disclosures
Wave Life Sciences Reports 2024 Financial Results and Updates
Positive
Mar 4, 2025
On March 4, 2025, Wave Life Sciences announced its financial results for the fourth quarter and full year of 2024, alongside a business update. The company highlighted progress in its clinical trials, including the INLIGHT trial for obesity and the RestorAATion-2 trial for alpha-1 antitrypsin deficiency. They also reported advancements in their RNA editing and exon skipping programs, with significant milestones expected in 2025. The company maintains a strong cash position, ensuring operational runway into 2027, and continues to build its pipeline targeting high-impact biology.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.