On Wednesday, RBC Capital maintained its "Sector Perform" rating and a $5.00 share price target for WAVE Life Sciences (NASDAQ:WVE). The firm's stance comes as WAVE Life Sciences anticipates new data releases across several of its developmental programs. RBC Capital expressed a cautious outlook, citing mixed results from earlier data and previous clinical setbacks.
WAVE Life Sciences is expected to release new data for its Huntington's disease (HD) program in the second quarter. A key determinant for the continuation of this program will be whether a 20% allele-specific knockdown (KD) can be achieved, which will also influence Takeda Pharmaceutical's decision to opt into the program. Despite the potential for advancement, RBC Capital remains reserved in its expectations due to previously mixed data outcomes.
The company also plans to share dystrophin levels in the third quarter for its Exon 53 skipping therapy for Duchenne muscular dystrophy (DMD). Although the data so far has been promising, it is worth noting that this treatment is relevant for only 9% of all DMD patients. This specificity could limit the overall impact of the therapy.
By the end of 2024, WAVE Life Sciences is set to provide a first glimpse at its Alpha-1 antitrypsin (A1AT) deficiency program. The success of augmentation therapy in clinical trials will set a benchmark for the program's clinical viability. Additionally, the company has selected a drug candidate for obesity that targets INHBE, with the clinical trial expected to begin next year.
RBC Capital acknowledged the progress WAVE Life Sciences has made but emphasized a cautious approach. The firm's outlook is shaped by the company's history of three prior clinical setbacks and the anticipation of further developments in its pipeline.
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