Wave Life Sciences Ltd. Segments Disclosure
14. SEGMENT INFORMATION
Operating segments are defined as components of an entity for which separate financial information is available and that is regularly reviewed by the CODM in deciding how to allocate resources to an individual segment and in assessing performance. The Company operates as a reporting segment, focused on developing its proprietary RNA medicines platform, PRISM, to develop and commercialize a broad pipeline of RNA medicines in a variety of therapeutic areas. Consistent with our operational structure, our , manages and allocates resources on a consolidated basis at the global corporate level. The results of our operations are reported on a consolidated basis for purposes of segment reporting. The CEO uses consolidated net loss that is reported on the consolidated statements of operations and comprehensive loss for the purposes of assessing performance, allocating resources and planning, monitoring budget versus actual results, and forecasting future periods.
The following table is representative of the significant expense categories regularly provided to the CODM when managing the Company's single reporting segment. A reconciliation to consolidated operating expenses as our single segment operating loss for the years ended December 31, 2025, 2024, and 2023 is included in the table below:
|
For the Year Ended December 31, |
|
|||||||||
|
2025 |
|
|
2024 |
|
|
2023 |
|
|||
|
(in thousands) |
|
|||||||||
Research and development expenses: |
|
|
|
|
|
|
|
|
|||
INHBE program |
$ |
15,715 |
|
|
$ |
9,294 |
|
|
$ |
229 |
|
AATD program |
|
5,714 |
|
|
|
11,666 |
|
|
|
8,453 |
|
DMD program |
|
19,469 |
|
|
|
15,536 |
|
|
|
7,808 |
|
HD program |
|
2,678 |
|
|
|
11,790 |
|
|
|
13,086 |
|
Other research and development expenses(1), including PNPLA3, additional preclinical programs, PRISM |
|
139,203 |
|
|
|
111,396 |
|
|
|
100,433 |
|
Total research and development expenses |
|
182,779 |
|
|
|
159,682 |
|
|
|
130,009 |
|
General and administrative expenses |
|
75,331 |
|
|
|
59,023 |
|
|
|
51,292 |
|
Total operating expenses |
$ |
258,110 |
|
|
$ |
218,705 |
|
|
$ |
181,301 |
|
(1) Includes expenses related to other research and development programs, identification of potential drug discovery candidates, compensation-related expenses, internal manufacturing expenses, equipment repairs and maintenance expense, facility-related expenses, and other operating expenses, which are not allocated to specific programs.
About Segments Disclosures
Segment disclosures break a company into its reportable operating units, revealing revenue, profit, and asset allocation that consolidated financial statements obscure. Under ASC 280, segments must match how the chief operating decision maker views the business, providing a window into internal management structure and resource allocation priorities.
Key signals: compare segment margins to identify which units drive profitability and which destroy value. Watch for changes in the number of reportable segments — segment aggregation or disaggregation often coincides with strategic shifts or attempts to obscure declining performance. Intersegment elimination patterns reveal internal pricing practices. The reconciliation between segment totals and consolidated figures exposes corporate overhead allocation and unallocated items. Geographic revenue concentration highlights regulatory and currency exposure. Compare segment-level capital expenditure against segment revenue to assess where management is investing for future growth versus harvesting existing assets.