Wave Life Sciences (WVE) Q2 2024 earnings summary

Executive summary

• Advanced a diversified RNA medicines pipeline with clinical programs in AATD (WVE-006), DMD (WVE-N531), obesity (WVE-007), and Huntington's disease (WVE-003), leveraging the PRISM platform for rare and prevalent diseases.

• Achieved positive SELECT-HD clinical trial results for WVE-003 in HD, demonstrating potent and durable mutant protein lowering and wild-type preservation, supporting regulatory engagement for accelerated approval.

• Strategic collaborations with GSK and Takeda provide significant non-dilutive capital, pipeline expansion, and milestone opportunities, including $170M upfront from GSK and additional milestone payments.

• Recent clinical progress includes initiation of dosing in RestorAATion-2 (AATD) and FORWARD-53 (DMD) trials, with key data readouts expected in H2 2024.

• Upcoming clinical milestones in 2024–2025 include proof-of-mechanism data for WVE-006, dystrophin data for WVE-N531, and clinical trial initiation for WVE-007.

Financial highlights

• Q2 2024 revenue was $19.7M, down from $22.1M in Q2 2023, mainly from GSK and Takeda collaborations.

• R&D expenses increased to $40.4M from $33.3M year-over-year, with total operating expenses at $54.7M in Q2 2024.

• Net loss for Q2 2024 was $32.9M, compared to $21.1M in Q2 2023; six-month net loss was $64.5M vs. $48.5M prior year.

• Cash and cash equivalents totaled $154M at June 30, 2024, with an additional $12.7M raised post-quarter; runway expected into Q4 2025.

• Deferred revenue at quarter-end was $76.2M (current: $66.7M, long-term: $9.6M).

Outlook and guidance

• Expecting regulatory feedback and Takeda's opt-in decision for HD program by year-end 2024.

• Anticipating 24-week dystrophin data for DMD program in Q3 2024 and proof-of-mechanism data for WVE-006 in AATD in Q4 2024.

• Clinical trial initiation for WVE-007 in obesity planned for Q1 2025; R&D Day in Fall 2024 will provide pipeline updates.

• Expects to select five new clinical candidates by end of 2025.

• Existing cash expected to fund operations for at least the next 12 months; additional capital may be raised opportunistically.