Shares of Wave Life Sciences Ltd. (NASDAQ:WVE) dropped about 30% on Thursday even after the company released interim Phase 1 data from its INLIGHT study evaluating WVE-007 as a potential treatment for obesity.
According to the company, six-month results showed that a single 240 mg dose of WVE-007 produced a placebo-adjusted 14% reduction in visceral fat among otherwise healthy individuals who were overweight or obese. The 240 mg cohort included 32 participants with an average body mass index (BMI) of 32 kg/m², notably lower than the roughly 37 kg/m² BMI typically seen in later-stage obesity trials.
Wave said the therapy achieved a 16.5% improvement in the visceral fat-to-muscle ratio compared with baseline. By comparison, weekly semaglutide dosing produced a 12.2% improvement in a separate Phase 2 study that involved participants with higher BMI levels.
The treatment also generated a placebo-adjusted 3.3% reduction in waist circumference and a 0.9% drop in body weight after six months. At the same time, lean muscle mass increased by 2.4%.
WVE-007 was reported to be generally safe and well tolerated at doses up to 600 mg, with no treatment discontinuations or serious adverse events recorded during the study. Reductions in serum Activin E levels persisted for at least seven months, with maximum decreases reaching as much as 88%, supporting the possibility of dosing once or twice per year.
Wave said it plans to launch the Phase 2a portion of the INLIGHT study in the second quarter of 2026. The next stage will enroll participants with higher BMI levels between 35 and 50 kg/m² who also have related health conditions.
The company expects the study to demonstrate stronger improvements in body composition and weight loss, potentially supporting development of WVE-007 for obesity as well as conditions such as MASH, type 2 diabetes and cardiovascular disease.
The global obesity drug market is currently led by Novo Nordisk and Eli Lilly.