Setback to Wave Life Sciences: Obesity Drug WVE-007 Shows Limited Efficacy in Early Trial

The Cambridge-based company's ‌market value ⁠is ⁠set to fall by about $1.35 billion, if losses hold.

In an early-stage trial, patients who received one injection of Wave's drug, WVE-007, at the higher 400-milligram dose lost about 5% of visceral fat - the dangerous fat that builds up around internal organs - after three months.

But this did not show a clear improvement over the 14% visceral fat loss after six ⁠months for ‌those who got the 240 mg dose.

Investors are likely ​discouraged by ​the 400 mg data at 3 months, which look similar ⁠on visceral fat as 240 mg and not ​as good on total fat and lean mass," a ​Leerink Partners analyst said in a note.

"Wave delivered half of what we were hoping to see for WVE-007," said Cantor analyst Steve Seedhouse.

CEO Paul Bolno said ​the company ​expects "substantially larger effects" when ⁠it moves to heavier patients in its upcoming mid-stage study, which will enroll people with BMIs of 35 to 50.

The mid-stage study including higher BMI ​patients with multiple doses will be needed before the obesity thesis can be properly evaluated, B. Riley Securities analyst Madison El-Saadi said.

In the reported study, patients on the 240-mg dose lost about 0.9% of their body weight on average compared with placebo after six months of follow-up.

Wave executives said the weaker-looking result reflected who was enrolled, and not the drug's limits.

The 400-mg group started with "notably healthier" body composition, including about ‌30% less visceral fat at baseline, Chief Medical Officer Chris Wright told investors on a conference call.