Wave Life Sciences (WVE) Q2 2024 earnings summary

Executive summary

• Achieved significant progress in advancing the RNA medicines pipeline, with positive SELECT-HD clinical trial results for WVE-003 in Huntington's disease, demonstrating potent and durable mutant protein lowering and wild-type preservation, supporting engagement with regulators for accelerated approval.

• Advanced DMD program (WVE-N531) with industry-leading exon skipping and high muscle concentrations, aiming for >5% dystrophin expression; dystrophin data from the potentially registrational FORWARD-53 trial expected in Q3 2024.

• Progressed first-in-class RNA editing candidate WVE-006 for AATD, with dosing initiated in RestorAATion-2 and proof-of-mechanism data expected in Q4 2024.

• Introduced WVE-007 for obesity, showing promising preclinical results, potent INHBE silencing, and planning clinical trial initiation in early 2025.

• Strategic collaborations with GSK and Takeda provide funding, pipeline expansion, and milestone opportunities; GSK selected two new programs, triggering a $12M payment.

Financial highlights

• Collaboration revenue was $19.7 million in Q2 2024, down from $22.1 million year-over-year, mainly from GSK and Takeda collaborations.

• R&D expenses increased to $40.4 million from $33.3 million, and G&A expenses rose to $14.3 million from $12.3 million year-over-year.

• Net loss widened to $32.9 million from $21.1 million in the prior year quarter; six-month net loss was $64.5 million vs. $48.5 million prior year.

• Cash and cash equivalents totaled $154 million at quarter end, with an additional $12.7 million raised post-quarter via at-the-market equity; runway expected into Q4 2025.

• Operating expenses rose to $54.7 million in Q2 2024 from $45.6 million in Q2 2023.

Outlook and guidance

• Expecting regulatory feedback and Takeda's opt-in decision for HD program by year-end.

• Anticipating 24-week dystrophin data for DMD program later this quarter; proof-of-mechanism data for WVE-006 in AATD expected in Q4 2024.

• Planning to file CTA for WVE-007 by year-end and initiate clinical trial in Q1 2025.

• R&D Day in the fall will provide updates on emerging pipeline and preclinical data.

• Expects to select five new clinical candidates by end of 2025, including WVE-007 for obesity.