Fourth Quarter and Full Year 2022 Financial Results and Financial Guidance
Wave reported a net loss of $43.7 million in the fourth quarter of 2022, as compared to $34.8 million in the same period in 2021. The increase in net loss in the fourth quarter from 2021 to 2022 was primarily driven by the increased spend on our clinical programs as well as increased compensation-related expenses, as discussed below. Wave reported a net loss of $161.8 million for the year ended December 31, 2022, as compared to $122.2 million for the year ended December 31, 2021. The increase in net loss year-over-year was primarily driven by the decrease in revenue recognized under the Takeda Collaboration.
Revenue earned under the Takeda Collaboration in the fourth quarter of 2022 was $1.2 million, as compared to $1.8 million in the same period in 2021. During the year ended December 31, 2022, Wave earned $3.6 million under the Takeda Collaboration, as compared to $41.0 million during the year ended December 31, 2021. The year-over-year decrease is primarily driven by the recognition of revenue related to the Takeda Amendment in the prior year period.
Research and development expenses were $31.1 million in the fourth quarter of 2022 as compared to $25.8 million in the same period in 2021. The increase in research and development expenses in the fourth quarter was primarily due to increased external expenses related to our AATD, C9orf72 and DMD programs and compensation-related costs, partially offset by a decrease in spending on our HD programs. Research and development expenses were $115.9 million in 2022, as compared to $121.9 million in 2021 primarily due to the previously disclosed discontinued PRECISION-HD programs, partially offset by increased spend on our other programs.
General and administrative expenses were $13.7 million in the fourth quarter of 2022 as compared to $12.1 million in the same period in 2021, primarily due to increases in professional and service fee expenses. General and administrative expenses were $50.5 million in 2022, as compared to $46.1 million in 2021. The increase in general and administrative expenses year-over-year was primarily due to increases in compensation-related expenses, as well as increases in other external general and administrative expenses.
As of December 31, 2022, Wave had $88.5 million in cash and cash equivalents, as compared to $150.6 million as of December 31, 2021. As previously disclosed, Wave entered into a strategic collaboration with GSK that became effective in the first quarter of 2023 and provided upfront cash of $170 million to Wave. Accordingly, the Company expects that its current cash and cash equivalents will be sufficient to fund operations into 2025.
Investor Conference Call and Webcast
Wave management will host an investor conference call today at 8:30 a.m. ET to discuss the fourth quarter and full year 2022 financial results and provide a business update. A webcast of the conference call may be accessed by visiting “Events” on the investor relations section of the Wave Life Sciences corporate website: ir.wavelifesciences.com/events-and-presentations.
Analysts planning to participate during the Q&A portion of the live call can join the conference call at the following audio conferencing link: available here. Once registered, participants will receive the dial-in information.
Following the live event, an archived version of the webcast will be available on the Wave Life Sciences website.
About WVE-N531 Clinical Trial
WVE-N531 is being evaluated in a Phase 1b/2a open-label study to evaluate the safety, tolerability, pharmacokinetic (PK), pharmacodynamic (PD), and clinical effects of intravenous (IV) WVE-N531 in patients with Duchenne muscular dystrophy (DMD). In the initial cohort of the trial, three boys received single escalating doses of 1, 3, 6 and 10 mg/kg; and in the multidose portion of the study, the same boys received three doses of 10 mg/kg every other week. A muscle biopsy was taken two weeks after the third and final dose, which was six weeks after the first dose. Based on positive initial results, Wave is initiating Part B (Phase 2) of the study to include up to ten boys with DMD, who will receive 10mg/kg of WVE-N531 administered biweekly. The primary objective will be measurement of dystrophin protein after 24 and 48 weeks of treatment. Additional objectives include PK, functional endpoints, as well as safety and tolerability.