Wave Life Sciences' WVE-007 Shows 'Modest' Weight Reduction in Trial, Wedbush Says

Wave Life Sciences (WVE) still offers prospects in its obesity therapy WVE-007 but may be not as a monotherapy following data from an early stage trial, Wedbush said in a Friday report.

The note said the improved visceral fat reduction with lean mass maintenance in the 240mg cohort at 6 months is encouraging, backing WVE-007's activity in improving body composition.

"However, due the relatively modest weight reduction of 0.9% at 6 months and a seeming lack of dose response at 400mg, we question whether the bar for an obesity therapy to receive FDA approval...could be hit by WVE-007 as monotherapy, even in

subjects with a higher baseline BMI," the report said.

To secure an approval from the US Food and Drug Administration, it needs a body weight reduction of over 5% versus placebo at 12 months, the note said.

Still, the report said a combination with incretin therapies or maintenance therapy post incretin treatments should remain viable options for WVE-007.

Wedbush cut its price target to $15 from $35 while keeping its outperform rating. It removed the stock from its Best Ideas List.

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