Wave Life Sciences' (WVE) positive phase 1 data on experimental obesity drug WVE-007 suggests a higher earnings potential with a possible 2029 launch in the best-case scenario, Truist said Monday in a note.

The drug may reach $10 billion in cumulative US sales by 2043, depending on trial outcomes and possible label expansion, Truist said.

The firm assigns a 25% probability of success and projects initial pricing around $25,000 per year, adjusted for inflation.

A commercial launch would likely follow two 72-week phase 3 trials, though a single trial may suffice pending guidance from the US Food and Drug Administration, Truist said.

WVE-007 targets the INHBE gene and may offer metabolic benefits beyond standard weight-loss effects, the report said.

Wave's stereopure siRNA platform shows a strong competitive edge following four straight successful data readouts, the report said.

Truist raised its price target on Wave stock to $50 from $36 and maintained its buy rating.

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