Wave Life Sciences has recently released its annual report, providing insights into the company's financial performance and strategic initiatives. The company, a clinical-stage genetic medicine firm, specializes in designing, optimizing, and producing novel stereopure oligonucleotides through its PRISM platform. These oligonucleotides target ribonucleic acid (RNA) to correct disease-causing mutations, modulate protein activity, and reduce the expression of disease-promoting RNAs or proteins. Wave Life Sciences has a diverse pipeline of potential first or best-in-class programs, including those for hepatic and metabolic diseases, muscle, central nervous system (CNS), and other disease areas. The company also has collaboration agreements with Pfizer Inc., Takeda Pharmaceutical Company Limited, and Glaxo Group Limited.
The company has never been profitable and has incurred significant operating losses since its inception. As of December 31, 2023, the company had an accumulated deficit of $1,024.9 million. Wave Life Sciences recognizes collaboration revenue under the GSK Collaboration Agreement and the Takeda Collaboration Agreement. It has not generated any product revenue since its inception and does not expect to do so in the foreseeable future.
The report details the company's operating expenses, which primarily consist of research and development expenses and general and administrative expenses. Research and development expenses include costs related to research activities, development of product candidates, compensation-related expenses, expenses incurred under agreements with third parties, compliance with regulatory requirements, and other research and development supplies and services expenses. The company expects to continue incurring significant research and development expenses as it manages existing clinical trials, initiates additional clinical trials, and pursues later stages of clinical development for certain product candidates.
General and administrative expenses include compensation-related expenses, legal fees, expenses associated with being a public company, professional fees, insurance costs, travel expenses, and other operating costs. Wave Life Sciences also discusses its other income, net, which comprises refundable tax credits, dividend and interest income, gains and losses on foreign currency transactions, and real estate taxes. The company has recorded a full valuation allowance against its net operating loss carryforwards and federal and state tax credits due to uncertainty regarding future taxable income.
In terms of financial results, Wave Life Sciences reported revenue of $113.3 million for the year ended December 31, 2023, driven by the revenue recognized under the GSK Collaboration Agreement and the Takeda Collaboration Agreement. This marked a substantial increase from the $3.6 million in revenue reported for the year ended December 31, 2022. The company also reported a net loss of $57.5 million for the year ended December 31, 2023, compared to a net loss of $161.8 million for the year ended December 31, 2022. The report provides a detailed breakdown of operating expenses, loss from operations, and income tax benefit (provision) for the same periods.
Today the company's shares have moved 30.3% to a price of $6.24. For more information, read the company's full 10-K submission here.
