A down day with declines exceeding advances by more than 2: 1.
We discuss Wave Lifesciences’ (WVE) unique stereopure oligonucleotide technology.
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A down day with declines exceeding advances by more than 2: 1 and NYAD line turning down is not a good sign at this important junction where it is still unclear if we will go on to new highs in major U.S. equity indexes or turn down and retest or even exceed the lows from the recent 10% correction. VIX was also up >5% today indicating risk-off environment. The Dow Transports had some positive divergence at the close and seem to be leading.
So, now we know why Wave Lifesciences (WVE), Singapore based biotech has more than doubled recently. Japanese giant Takeda out-licensed Wave’s proprietary RNA technology in various neurodegenerative diseases like amyotrophic lateral sclerosis, Huntington’s disease and even possible application in Alzheimer’s disease. Takeda even agreed to buy 60 million Wave shares at $54.70/each (that is right, a $3.2 billion equity investment) plus the potential for $2 billion in additional milestone payments. On background for why this early clinical stage biotech company is attracting so much attention, Wave claims that its ‘stereopure’ oligonucleotides are expected to have higher efficacy and safety than the currently available oligonucleotide technologies which are ‘stereorandom’. Per Wave’s 10-Q, a stereopure oligonucleotide is comprised of “molecules with atoms precisely arranged in three-dimensional orientations at each linkage”. Preclinical studies have shown that Wave’s approach has some ground and considering that it is addressing diseases with large addressable markets (compare its $1.4 B market cap to Sarepta’s $4.5B market cap, which has exondys51, oligonucleotide compound approved in Duchenne muscular dystrophy, Wave is also targeting DMD and retains all its rights). Wave claims that its technology is addressing about 25 million patients across various disorders. Here is a paper that Wave scientists published last year on its stereopure oligonucleotide technology.