We are recommending Wave Life Sciences Ltd. (WVE) as our more aggressive biotech Top Pick for 2026. The company is an emerging leader in discovery and drug development based on their pioneering best-in-class RNA chemistry, advises John McCamant, editor of Medical Technology Stock Letter.
The proprietary PRISM platform leverages advanced chemistry to optimize the pharmacological properties of oligonucleotides, enabling multi-modal approaches, including RNA editing, silencing, and splicing, to pursue genetically validated targets.
The company recently delivered a significant catalyst with proof-of-concept clinical data from WVE-007 for obesity with additional data due in Q1 2026 and Q2 2026. In our view, the positive “muscle sparing” data for ‘007 has provided proof of principle for WVE’s proprietary PRISM platform and a favorable read through for the company’s pipeline.
Wave’s recently released strong initial obesity data in the INLIGHT trial for WVE-007 (INHBE siRNA), which ushers in a new player in the obesity landscape. Based on this outstanding obesity data, the body “muscle sparing” profile validates INHBE as a novel mechanism of action (MOA) and also de-risks Wave’s RNAi platform.
WVE-007 (240 mg single dose) delivered excellent data with a 9.2% placebo-adjusted reduction in visceral fat accompanied by a statistically significant 0.9% gain in lean mass, which as initial PoC data are extremely encouraging. Importantly, the minimal total weight reduction (-0.9% placebo-adjusted) was driven by the loss of fat being offset by the gain in muscle. This creates a clear differentiation from GLP-1s.
Furthermore, the durability data, 75%-78% Activin E silencing maintained through Day 85, confirms the viability of a once-or-twice-yearly dosing regimen, a major advantage for WVE’s RNA silencing platform. WVE-007 showed no GI adverse events and no discontinuations.
With the novel MOA de-risked, we can expect significant M&A speculation as Big Pharma players with GLP-1 assets like Novo Nordisk (NVO) – which just lost a bidding war with Pfizer Inc. (PFE) over MTSR – look to secure this novel "muscle-sparing" drug with once-or-twice-per-year dosing potential.
WVE is planning for a Phase II development program testing WVE-007 both as a monotherapy and as an add-on to GLP-1s in both induction and maintenance settings in 2026. In addition, WVE remains on track to report six-month follow-up data from the 240mg cohort and three-month data from the 400mg cohort in Q1 2026.
In our view, the next two data readouts for ‘007 at higher doses in Q1 2026 and Q2 2026 have the potential to serve as significant catalysts for the stock.
Recommended Action: Buy WVE.
