Wave Life Sciences (WVE) risk factors, FY2025 10-K

Risks Related to Our Financial Results and Capital Requirements

1. 01We are a clinical-stage biotechnology company with a history of losses, and we expect to continue to incur losses for the foreseeable future, and we may never achieve or maintain profitability29% rewritten
2. 02We will require substantial additional funding, which may not be available on acceptable terms, or at all
3. 03the costs of securing manufacturing arrangements internally or with third parties for drug supply
4. 04Our business may be impacted by macroeconomic conditions, including fears concerning the financial services industry, inflation, volatility in interest rates and volatile market conditions, and other uncertainties beyond our control
5. 05Our management has broad discretion over the use of proceeds received from sales of our securities and our collaborations with third parties and the proceeds may not be used effectively
6. 06Our operating history as a clinical-stage biotechnology company may make it difficult for shareholders to evaluate the success of our business to date and to assess our future viability38% rewritten

Risks Related to the Discovery, Manufacturing, Development and Commercialization of Our Product Candidates

1. 07The approach we are taking to discover and develop RNA medicines is novel and may never lead to marketable products
2. 08Because we are developing oligonucleotides, which are considered a relatively new class of drugs, there is increased risk that the outcome of our clinical trials will not be sufficient to obtain regulatory approval
3. 09We have a robust and diverse pipeline of first- or best-in-class RNA medicines. Our pipeline is focused on our obesity, AATD and PNPLA3 I148M liver disease programs, and also includes clinical programs for DMD and HD, as well as several preclinical programs utilizing our versatile RNA medicines platformNew
4. 10appropriately addressing the post-marketing requirements and/or commitments made upon regulatory approval
5. 11We may not be able to conduct clinical trials successfully due to various process-related factors that could negatively impact our business plans
6. 12If we cannot successfully manufacture our product candidates for our research and development and preclinical activities, or manufacture sufficient amounts of our product candidates to meet our clinical requirements and timelines, our business may be materially harmed
7. 13The process of manufacturing oligonucleotides is complex and we may encounter difficulties in production, particularly with respect to process development or scaling-up of our manufacturing capabilities
8. 14We may expend our limited resources to pursue a particular product candidate or indication and fail to capitalize on product candidates or indications that may be more profitable or for which there is a greater likelihood of success
9. 15Any product candidates we develop may fail in preclinical or clinical development or be delayed to a point where they do not become commercially viable73% rewritten
10. 16result in the FDA or comparable foreign regulatory authorities suspending or terminating the trial and refusing to approve a particular product candidate for any or all indications of useNew
11. 17varying interpretations of data by the FDA and similar foreign regulatory agencies
12. 18Results of preclinical studies and early clinical trials may not be predictive of results of subsequent clinical trials
13. 19If we experience delays or difficulties in the enrollment of patients in clinical trials, our receipt of necessary regulatory approvals could be delayed or prevented
14. 20If we are unable to successfully develop or obtain regulatory approval for companion diagnostic tests for our product candidates, or experience significant delays in doing so, our clinical trials may be delayed and our business could be materially harmed
15. 21We may be unable to obtain regulatory approval in the United States or foreign jurisdictions and, as a result, be unable to commercialize our product candidates and our ability to generate revenue will be materially impaired
16. 22If we are granted orphan drug designations in the United States for any of our product candidates, there can be no guarantee that we will maintain orphan status for these product candidates or receive approval for any product candidate with an orphan drug designation
17. 23Even if we receive regulatory approval to market our product candidates, the market may not be receptive to our product candidates upon their commercial introduction, which will prevent us from becoming profitable
18. 24The pharmaceutical industry is intensely competitive. If we are unable to compete effectively with existing drugs, new treatment methods and new technologies, we may be unable to commercialize successfully any drugs that we develop
19. 25collaborative arrangements in our target markets with leading companies and research institutions
20. 26If we or our collaborators, manufacturers, service providers or other third parties fail to comply with applicable healthcare laws and regulations, we or they could be subject to enforcement actions, which could affect our ability to develop, market and sell our products and may harm our reputation39% rewritten
21. 27civil and criminal penalties, up to and including criminal prosecution resulting in fines, exclusion from healthcare reimbursement programs and imprisonment
22. 28Any drugs we develop may become subject to unfavorable pricing regulations, third-party reimbursement practices or healthcare reform initiatives, thereby harming our business52% rewritten
23. 29prices charged or the amounts paid for pharmaceutical products. If the price we are able to charge for any products we develop, or the payments provided for such products, is inadequate in light of our development and other costs, our return on investment could be adversely affectedNew
24. 30they have been approved by the FDA and meet other requirements of the statute40% rewritten
25. 31Changes in laws and regulations affecting the healthcare industry could adversely affect our business
26. 32Risks associated with our operations outside of the United States and developments in international trade by the U.S. and foreign governments could adversely affect our business
27. 33We or third parties upon whom we depend may be adversely affected by natural disasters and/or local and global health epidemics, and our business, financial condition and results of operations could be adversely affected77% rewritten
28. 34There is a substantial risk of product liability claims in our business. If we are unable to obtain or maintain sufficient insurance, a product liability claim against us could adversely affect our business
29. 35If we do not comply with laws regulating the protection of the environment and health and human safety, our business could be adversely affected

Risks Related to Our Dependence on Third Parties

1. 36We may depend on collaborations with third parties for the development and commercialization of certain of our product candidates
2. 37collaborations may be terminated and, if terminated, may result in a need for additional capital to pursue further development or commercialization of the applicable product candidates47% rewritten
3. 38We may not be able to execute our business strategy optimally if we are unable to maintain our existing collaborations or enter into new collaborations with partners that can provide sales, marketing and distribution capabilities and funds for the development and commercialization of our product candidatesNew
4. 39We rely, and expect to continue to rely, on third parties to conduct some aspects of our compound formulation, research, preclinical studies and clinical trials, and those third parties may not perform satisfactorily, including failing to meet deadlines for the completion of such formulation, research or testing
5. 40We rely on third parties to design, conduct, supervise and monitor our preclinical studies and clinical trials, and if those third parties perform in an unsatisfactory manner, it may harm our business
6. 41We rely on third parties in the supply and manufacture of our product candidates for our research, preclinical and clinical activities, and may do the same for commercial supplies of our product candidates81% rewritten
7. 42in the event of approval to market and commercialize a product candidate, an inability to meet commercial demands for our products

Risks Related to Managing Our Operations

1. 43If we are unable to attract and retain qualified key management and scientists, staff, consultants and advisors, our ability to implement our business plan may be adversely affected
2. 44As we continue our preclinical studies and clinical trials and advance to further clinical development, we may experience difficulties in managing our growth and expanding our operations34% rewritten
3. 45Our employees, consultants and collaborators may engage in misconduct or other improper activities, including noncompliance with regulatory standards and requirements
4. 46Security breaches, cybersecurity threats, misuse of AI tools, loss of data and other disruptions could compromise sensitive information related to our business, prevent us from accessing critical information or expose us to liability, which could adversely affect our business and our reputation94% rewritten
5. 47encompass a wide variety of business-critical information, including research and development information and business and financial informationNew
6. 48As the patchwork of state and federal U.S. privacy laws expands, enforcement of data privacy and cybersecurity breaches has increased, along with the cost (for example, the Federal Trade Commission increased enforcement of cybersecurity and data privacy, and related fines in 2025)New
7. 49Foreign currency exchange rates may adversely affect our results74% rewritten

Risks Related to Our Intellectual Property

1. 50If we are not able to obtain and enforce market exclusivity for our technologies or product candidates, development and commercialization of our product candidates may be adversely affected
2. 51Others will not independently develop similar or alternative technologies or duplicate any of our technologies without infringing our intellectual property rights
3. 52Our competitors do not conduct research and development activities in countries where we do not have enforceable patent rights and then use the information learned from such activities to develop competitive products for sale in our major commercial markets
4. 53Other companies or organizations may challenge our or our licensors’ patent rights or may assert patent rights that prevent us from developing and commercializing our products
5. 54We may not be able to protect our intellectual property rights throughout the world
6. 55If we fail to comply with our obligations under any license, collaboration or other agreement, we may be required to pay damages and could lose intellectual property rights that are necessary for developing and protecting our product candidates, or we could lose certain rights to grant sublicenses
7. 56If we are unable to protect the confidentiality of our trade secrets, our business and competitive position would be harmed
8. 57If our trademarks and trade names are not adequately protected, then we may not be able to build name recognition in our markets of interest and our business may be adversely affected

Risks Related to Our Being a Singapore Company

1. 58We are incorporated in Singapore and our shareholders may have more difficulty in protecting their interests than they would as shareholders of a corporation incorporated in the United States
2. 59We are subject to the laws of Singapore, which differ in certain material respects from the laws of the United States
3. 60We are subject to the Singapore Takeover Code, which requires a person acquiring 30% or more of our voting shares to conduct a takeover offer for all of our voting shares. This could have the effect of discouraging, delaying or preventing a merger or acquisition and limit the market price of our ordinary shares30% rewritten
4. 61For a limited period of time, our directors have general authority to allot and issue new ordinary shares on terms and conditions and for such purposes as may be determined by our Board in its sole discretion
5. 62Singapore taxes may differ from the tax laws of other jurisdictions
6. 63We may become subject to unanticipated tax liabilities
7. 64Tax authorities could challenge the allocation of income and deductions among our subsidiaries, which could increase our overall tax liability67% rewritten

Risks Related to Our Ordinary Shares

1. 65The public market for our ordinary shares may not be liquid enough for our shareholders to sell their ordinary shares quickly or at market price, or at all
2. 66The market price of our ordinary shares is likely to be highly volatile, and our shareholders may lose some or all of their investment
3. 67We have issued pre-funded warrants in certain of our financings, which may cause additional dilution to our shareholders45% rewritten
4. 68Our principal shareholders and management own a significant percentage of our ordinary shares and will be able to exert significant control over matters subject to shareholder approval
5. 69We incur significant costs due to operating as a public company, and our management is required to devote substantial time to compliance initiatives
6. 70If we fail to maintain proper and effective internal controls, our ability to produce accurate and timely financial statements could be impaired, which could harm our operating results, our ability to operate our business and investors’ views of us
7. 71The estimates and judgments we make, or the assumptions on which we rely, in preparing our consolidated financial statements could prove inaccurate
8. 72We do not anticipate paying any cash dividends on our ordinary shares in the foreseeable future
9. 73We may incur significant costs from class action litigation due to share volatility
10. 74Sales of additional ordinary shares could cause the price of our ordinary shares to decline
11. 75If securities or industry analysts do not publish research or publish inaccurate or unfavorable research about our business, our share price and trading volume could decline