Financial Performance Overview

Wave Life Sciences is a clinical-stage genetic medicines company focused on developing treatments for muscle diseases. In 2023, Wave incurred a net loss of $212 million compared to $174 million in 2022. The increased loss was primarily driven by expanded research and development activities.

As of March 2024, Wave had $916 million in cash, cash equivalents and investments. Based on current operating plans, Wave expects these resources will fund operations for at least the next 12 months.

Revenue

In 2023 and early 2024, Wave generated revenue through research collaborations and license agreements with companies like Bristol Myers Squibb and Eli Lilly. These partnerships provide upfront payments, milestone payments, and reimbursement of research costs.

Wave does not expect to generate product revenue unless and until its treatments are approved. The timing and amount of collaboration revenue is variable based on the terms and progress of each agreement.

Expenses

Research and Development

Research and development expenses were $66.8 million in Q1 2024 compared to $47.8 million in Q1 2023. The increase was driven by:

• Higher costs related to advancing clinical and preclinical programs
• Increased staffing to support expanded pipeline
• Manufacturing expenses for clinical trial materials

Key R&D programs include treatments for muscle diseases like Duchenne muscular dystrophy (DMD) and facioscapulohumeral dystrophy (FSHD).

Wave expects R&D expenses to continue increasing as clinical trials progress and additional programs enter the pipeline. The magnitude and timing of expenses is difficult to predict due to variability in cost, timing and outcomes of drug development.

R&D Expense (millions)	Q1 2024	Q1 2023
External costs	$42.2	$27.2
Internal costs	$24.6	$20.5
Total	$66.8	$47.8

General and Administrative

General and administrative expenses support corporate operations and business development activities. These expenses increased from $12.1 million in Q1 2023 to $13.9 million in Q1 2024, primarily driven by higher staffing costs.

Liquidity and Capital Resources

Wave funds operations through cash reserves, public equity offerings, collaborations, and other financing arrangements.

In early 2024, Wave raised $380 million in a private stock placement. Combined with existing cash reserves, Wave has over $915 million to fund operations for at least the next 12 months based on current operating plans.

Additional funding will be required to advance Wave’s pipeline over the long term. The company may raise additional capital through public or private equity offerings, debt financings, collaborations, or other means.

Future Outlook

Over the next 12-18 months, Wave expects to:

• Report data from multiple clinical programs
• Expand research pipeline into new disease areas
• Explore additional partnerships to broaden platform capabilities

The company’s goal is to develop novel genetic medicines that can transform treatment for people living with debilitating muscle diseases.