Wave Life Sciences Ltd. (NASDAQ:WVE) stock rose Tuesday on continued optimism after the company announced data from the lowest therapeutic cohort of the ongoing INLIGHT trial of WVE-007 for weight loss.
On Monday, the company said that a single 240 mg dose of WVE-007 led to an improvement in body composition characterized by reductions in total and visceral fat mass at three months and an increase in lean mass.
From baseline, a single dose of WVE-007 improved body composition and led to a 9.4% reduction in visceral fat, a 4.5% reduction in total body fat, and a 3.2% increase in lean mass.
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$250 Million Public Offering
Wave Life Sciences also said Monday it has begun an underwritten public offering totaling $250 million of its ordinary shares and, for certain investors, pre-funded warrants in lieu of ordinary shares.
The company said the offering marks the next step in supporting its research pipeline and operational growth, with all securities to be sold directly by Wave Life Sciences.
The company plans to grant underwriters a 30-day option to purchase up to an additional 15% of the total ordinary shares and shares underlying pre-funded warrants sold in the deal, on the same terms and conditions.
The company emphasized that completion of the transaction remains subject to market and other customary conditions, noting that "there can be no assurance as to whether or when the offering may be completed, or as to the actual size or terms of the offering."
Jefferies, Leerink Partners, and BofA Securities are serving as joint book-running managers.
Analysts View
Analysts turned more bullish on Wave Life Sciences, with multiple firms lifting both ratings and price forecasts. RBC Capital upgraded the stock to Outperform from Sector Perform and raised its price forecast to $27 from $9.
Clear Street reiterated its Buy rating while sharply increasing its price forecast to $47 from $22. Cantor Fitzgerald also maintained an Overweight rating and raised its price forecast to $34 from $12.
WVE Price Action: WAVE Life Sciences shares were up 14.52% at $21.21 at the time of publication on Tuesday. The stock is trading at a new 52-week high, according to Benzinga Pro data.
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