Wave Life Sciences (WVE): WAVing Back In; Moving to a Neutral Rating

We are moving to a Neutral rating on Wave Life Sciences (WVE) from Not Rated and do not have a price target. Wave leverages its PRISM platform, which is differentiated by its ability to manufacture stereopure RNA across modalities, including RNAi (SpiNA) and RNA editing (AIMers), generating a pipeline of assets that have had varying degrees of success in competitive indications. Notably, WVE-007 aims to silence the INHBE gene and therefore expression of activin E to induce lipolysis while preserving muscle mass to restore and maintain a healthy metabolic profile. Overall, we believe that much of the upside in the stock will be tied to WVE-007 and if the drug can meet the threshold of 5% total body weight loss in the future in obese patients, which we would like to see convincing data around before becoming constructive, including those that reinforce the efficacy profile. Moreover, while we acknowledge that Wave has a pipeline of assets that could be opportunities to generate value if