Feb. 5 at 7:08 PM
BofA🏁
$WVE Buy-
$38
Catalyst path offers multiple upside opportunities in 2026
$ARWR $RYTM
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We are initiating coverage of Wave Life Sciences (WVE), a clinical-stage RNA medicines company developing drugs for obesity and genetic disorders, with a Buy rating and
$38 PO.
Our constructive view is driven by: 1) a differentiated obesity drug (WVE-007) reframing the competitive debate from strictly weight loss to body composition,
2) first-in-human therapeutic RNA editing drug (WVE-006) has cleared initial de-risking hurdles in alpha-1 antitrypsin deficiency (AATD, a genetic disorder with liver and lung diseases), and
3) a multimodal, chemistry-led platform (named PRISM) which supports simplified delivery of all RNA medicine modalities (splicing, editing, interference).
We are ahead of consensus on both obesity and AATD, modeling ~
$16B unadjusted peak pipeline sales [Obesity=: 0.8% peak penetration as monoTx & 2% as combo/maintenance Tx, resulting in >
$11B pot'l unadj'd peak sales].
