Wave Life Sciences stock tumbles 30% despite positive trial data

Investing.com -- Wave Life Sciences Ltd. (NASDAQ:WVE) shares fell 30% Thursday following the company’s announcement of interim Phase 1 data from its INLIGHT trial evaluating WVE-007 for obesity treatment.

Wave Life Sciences reported six-month data showing a single 240 mg dose of WVE-007 led to a placebo-adjusted 14% reduction in visceral fat in otherwise healthy individuals with overweight or obesity. The trial enrolled 32 participants in the 240 mg cohort with an average BMI of 32 kg/m2, substantially lower than the BMI of approximately 37 kg/m2 typically seen in Phase 2 and 3 obesity studies.

The company said WVE-007 demonstrated a 16.5% improvement in visceral fat-to-muscle ratio from baseline, compared to a 12.2% improvement with weekly semaglutide doses in a separate Phase 2 trial that enrolled participants with higher BMI. The treatment also showed a placebo-adjusted 3.3% reduction in waist circumference and 0.9% reduction in body weight at six months, while lean mass increased 2.4%.

WVE-007 continued to be generally safe and well tolerated up to 600 mg, with no treatment discontinuations or severe adverse events reported. Serum Activin E reductions were sustained through at least seven months with mean maximum reductions up to 88%, supporting potential for once or twice-yearly dosing.

Wave plans to initiate the Phase 2a portion of INLIGHT in the second quarter of 2026, enrolling individuals with higher BMI of 35-50 kg/m2 and comorbidities. The company expects this study to demonstrate greater body composition improvements and weight loss, with results informing development in obesity, MASH, type 2 diabetes, and cardiovascular disease.

The obesity drug market is currently dominated by Novo Nordisk and Eli Lilly.

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