Wave Life selloff on Sarepta article ‘makes no sense,’ says Mizuho

Mizuho says shares of Wave Life Sciences (WVE) should not have traded down yesterday on the STAT article suggesting suggesting the FDA had been leaning against accelerated approval for Sarepta’s (SRPT) SRP-9001 gene therapy for Duchenne muscular dystrophy. The news should not really change WVE-N531’s potential for accelerated approval going forward, the analyst tells investors in a research note. The firm says WVE-N531 aims to build regular, full-length dystrophin protein, versus micro dystrophin for SRP-9001, which as a surrogate endpoint for clinical improvement has several pieces of data to back it up. It keeps a Buy rating on Wave Life with a $13 price target, saying the pullback yesterday "makes no sense."