Download PDF

1. Company Snapshot

1.a. Company Description

Wave Life Sciences Ltd., a clinical stage genetic medicine company, designs, optimizes, and produces novel stereopure oligonucleotides through PRISM, a discovery and drug developing platform.It is developing oligonucleotides target ribonucleic acid to reduce the expression of disease-promoting proteins or restore the production of functional proteins, or modulate protein expression.The company also develops WVE-004, a C9orf72 molecule for the treatment of amyotrophic lateral sclerosis and frontotemporal dementia; WVE-003, a mutant huntingtin SNP3 molecule for the treatment of Huntington's disease; WVE-N531, an Exon 53 molecule for the treatment of Duchenne muscular dystrophy; and ATXN3, a discovery stage program for the treatment of spinocerebellar ataxia 3, as well as multiple preclinical programs for CNS disorders.


In addition, it focuses on developing GalNAc-conjugated AIMers to treat hepatic indications comprising Alpha-1 antitrypsin deficiency (AATD); and two preclinical programs, such as Usher syndrome type 2A (USH2A) and retinitis pigmentosa due to a P23H mutation in the RHO gene (RhoP23H) for the treatment of retinal diseases.It has collaboration agreements with Pfizer Inc., Takeda Pharmaceutical Company Limited, University of Oxford, University of Massachusetts, Western Washington University, Grenoble Institute of Neurosciences, IRBM S.p.A, University of Louisville, and University College London.The company was incorporated in 2012 and is based in Singapore.

Show Full description

1.b. Last Insights on WVE

Negative drivers behind Wave Life Sciences' recent performance include the company's high research and development expenses, which increased by 25% year-over-year in Q4 2024. Additionally, the company's cash burn rate remains a concern, with a cash burn of $63 million in Q4 2024. Furthermore, the company's pipeline progress has been slow, with only one product candidate, WVE-N531, showing positive results in the FORWARD-53 study. The company's reliance on a single product candidate also raises concerns about its long-term viability.

1.c. Company Highlights

2. Wave Life Sciences Ltd.'s Q3 2025 Earnings: Progress Across Pipeline Programs

Wave Life Sciences Ltd. reported revenue of $7.6 million for the third quarter of 2025, a significant improvement from the negative $7.7 million in the prior year quarter. Research and development expenses were $45.9 million, and general and administrative expenses were $18.1 million, resulting in a net loss of $53.9 million. The company's actual EPS came out at -$0.32, slightly missing estimates of -$0.3. The cash position stood at $196.2 million, with an additional $72.1 million received subsequent to quarter-end, extending the expected cash runway into Q2 2027.

Publication Date: Nov -14

📋 Highlights
  • WVE-007 Efficacy: Achieved 56-85% reduction in target activity across 75mg-400mg cohorts, with 400mg cohort showing 85% decline.
  • WVE-006 AATD Progress: Achieved ≥50% mutant AAT protein reduction while maintaining ≥11μM basal levels, targeting root disease cause.
  • Financial Overview: Q3 2025 net loss of $53.9M; ended with $196.2M cash, extended to Q2 2027 via $72.1M in ATM and GSK milestones.
  • Obesity Program: 600mg dose approved for further study; 400mg cohort shows durable activity, with biomarker tracking for metabolic health.
  • Regulatory Alignment: FDA approved MRI as surrogate endpoint for Huntington’s disease, supporting placebo-controlled trial design.

Pipeline Updates and Progress

The company made significant progress across its pipeline programs, particularly with WVE-007, an inhibiting GalNAc siRNA, which has shown highly significant and durable human activity reductions. In the Enlight clinical trial, over 70 participants have been enrolled, and the company is on track to deliver data on over 100 participants in 2026. Kyle Moran noted that the financial performance was supported by the progress made in the pipeline, stating that the company has a "tremendous opportunity to reimagine what's possible for patients."

RNA Editing Program Advancements

Wave Life Sciences is also advancing its RNA editing program, WVE-006, for AATD, which has the potential to be the first treatment addressing the root cause of the disease. The company achieved its goals with 006, including keeping basal protein levels at or above 11 micromolar and driving 50% or greater circulating MA with corresponding decreases in mutant z AAT protein.

Valuation Metrics

Analysts estimate next year's revenue growth at 38.2%. The current valuation metrics indicate a P/E Ratio of -9.17, P/B Ratio of 8.98, and P/S Ratio of 10.02. The EV/EBITDA ratio stands at -7.09, suggesting that the market has priced in significant growth expectations. The company's ROE stands at -72.94%, indicating significant losses, while the ROIC is 263.41%, suggesting efficient use of capital.

Future Outlook

The company's progress across its pipeline programs and its financial performance indicate a strong momentum. With multiple programs advancing, including WVE-008, a GalNAc conjugated RNA editing program for PNPLA3 I148M liver disease, Wave Life Sciences is poised for significant developments in the coming year. The company's ability to expand manufacturing and drive fat loss without lean muscle mass loss could lead to a unique pricing dynamic, potentially disrupting the evolving obesity landscape.

3. NewsRoom

Card image cap

Handelsbanken Fonder AB Takes Position in WAVE Life Sciences Ltd. $WVE

Dec -01

Source: defenseworld.net

Card image cap

Geode Capital Management LLC Grows Stake in WAVE Life Sciences Ltd. $WVE

Dec -01

Source: defenseworld.net

Card image cap

These Analysts Revise Their Forecasts On Wave Life Sciences Following Q3 Results

Nov -11

Source: benzinga.com

Card image cap

Wave Life Sciences Ltd. (WVE) Q3 2025 Earnings Call Transcript

Nov -11

Source: seekingalpha.com

Card image cap

Wave Life Sciences (WVE) Reports Q3 Loss, Misses Revenue Estimates

Nov -10

Source: zacks.com

Card image cap

Wave Life Sciences Reports Third Quarter 2025 Financial Results and Provides Business Update

Nov -10

Source: globenewswire.com

Card image cap

Wave Life Sciences to Present at Upcoming Investor Conferences

Nov -07

Source: globenewswire.com

Card image cap

Wave Life Sciences to Present Preclinical Data Supporting Therapeutic Potential of WVE-007 for Obesity at ObesityWeek® 2025

Nov -05

Source: globenewswire.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (12.05%)

6. Segments

Stereopure Oligonucleotides

Expected Growth: 12.05%

Wave Life Sciences' Stereopure Oligonucleotides growth is driven by increasing adoption in precision medicine, rising demand for targeted therapies, and advancements in genetic research. The company's proprietary chemistry platform enables high-quality oligonucleotides, fueling growth in the RNA therapeutics market.

7. Detailed Products

PRISM

A proprietary oligonucleotide platform designed to discover and develop novel stereopure oligonucleotides that can be used to treat a wide range of genetic diseases.

Stereopure oligonucleotides

A novel class of stereopure oligonucleotides that can be used to treat genetic diseases by selectively targeting specific RNA sequences.

PNAs (Peptide Nucleic Acids)

A novel class of molecules that can be used to target specific RNA sequences and modulate gene expression.

LNA (Locked Nucleic Acid) antisense oligonucleotides

A class of antisense oligonucleotides that can be used to target specific RNA sequences and modulate gene expression.

8. Wave Life Sciences Ltd.'s Porter Forces

Forces Ranking

Threat Of Substitutes

Wave Life Sciences Ltd. has a moderate threat of substitutes due to the availability of alternative treatments and therapies for genetic disorders.

Bargaining Power Of Customers

Wave Life Sciences Ltd. has a low bargaining power of customers due to the lack of negotiating power among patients and healthcare providers.

Bargaining Power Of Suppliers

Wave Life Sciences Ltd. has a moderate bargaining power of suppliers due to the availability of multiple suppliers for raw materials and equipment.

Threat Of New Entrants

Wave Life Sciences Ltd. has a high threat of new entrants due to the growing interest in genetic research and development, making it easier for new companies to enter the market.

Intensity Of Rivalry

Wave Life Sciences Ltd. operates in a highly competitive industry with many established players, leading to a high intensity of rivalry.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 40.34%
Debt Cost 3.95%
Equity Weight 59.66%
Equity Cost -1.00%
WACC 1.00%
Leverage 67.61%

11. Quality Control: Wave Life Sciences Ltd. passed 2 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
Exelixis

A-Score: 5.8/10

Value: 3.4

Growth: 7.9

Quality: 9.2

Yield: 0.0

Momentum: 9.5

Volatility: 5.0

1-Year Total Return ->

View Full Report
Stock-Card
Incyte

A-Score: 5.8/10

Value: 4.2

Growth: 5.4

Quality: 9.1

Yield: 0.0

Momentum: 8.5

Volatility: 7.3

1-Year Total Return ->

View Full Report
Stock-Card
Halozyme Therapeutics

A-Score: 5.8/10

Value: 3.5

Growth: 9.1

Quality: 7.8

Yield: 0.0

Momentum: 8.5

Volatility: 5.7

1-Year Total Return ->

View Full Report
Stock-Card
HUTCHMED

A-Score: 5.5/10

Value: 6.7

Growth: 7.4

Quality: 7.1

Yield: 0.0

Momentum: 4.0

Volatility: 7.7

1-Year Total Return ->

View Full Report
Stock-Card
Wave Life Sciences

A-Score: 4.7/10

Value: 6.0

Growth: 5.6

Quality: 4.6

Yield: 0.0

Momentum: 6.5

Volatility: 5.7

1-Year Total Return ->

View Full Report
Stock-Card
Rovi

A-Score: 4.5/10

Value: 1.8

Growth: 7.7

Quality: 8.0

Yield: 2.5

Momentum: 1.0

Volatility: 6.3

1-Year Total Return ->

View Full Report

Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

7.49$

Current Price

7.49$

Potential

0.00%

Expected Cash-Flows