Piper Sandler reaffirmed its Overweight rating and $37.00 price target on NewAmsterdam Pharma Co NV (NASDAQ: NAMS). The firm's optimism is based on the potential of the company's drug, obicetrapib, as it heads into a significant period with the Phase 3 BROADWAY trial expected to commence in the fourth quarter of 2024.
Management at NewAmsterdam Pharma has discussed the promising outlook for obicetrapib, highlighting its consistent LDL-C reduction of 36.3-40.1% in past trials. These trials included patients with heterozygous familial hypercholesterolemia (HeFH) and those with general hypercholesterolemia. The company believes these results could contribute to a model predicting MACE (major adverse cardiac events) benefits, which will be a key component of the PREVAIL trial's topline results anticipated in the second half of 2026.
In addition to its LDL-C lowering capabilities, obicetrapib has demonstrated significant lowering of Lp(a), a lipid marker associated with cardiovascular risk. The upcoming Phase 3 HORIZON trial of pelacarsen in 2025 will indirectly support obicetrapib by establishing the relationship between Lp(a) levels and MACE outcomes.
NewAmsterdam Pharma's management expressed confidence in the drug's potential for demonstrating a MACE benefit, which is critical for the drug's competitive edge. The company's management team emphasized the importance of the treatment difference in driving the overall benefit of a therapy. This aspect, along with obicetrapib's unique product profile, is expected to position the drug favorably in the market.
Piper Sandler's position remains bullish on NewAmsterdam Pharma, citing the upcoming catalyst-rich period as a significant opportunity for upside in the company's stock.
NewAmsterdam Pharma Co N.V. has announced plans to restate its financial statements for the years ending 2022 and 2021, and for each of the three years in the period ending 2022, due to identified errors in the calculation of net loss per ordinary share. The pharmaceutical company has also reported successful outcomes from its Phase 3 BROOKLYN clinical trial, with the drug obicetrapib showing a significant reduction in low-density lipoprotein cholesterol in patients. Furthermore, NewAmsterdam has welcomed Mark C. McKenna and Wouter Joustra to its Board of Directors.
Analysts from Piper Sandler and TD Cowen have maintained their positive outlook on NewAmsterdam, reiterating their Overweight and Buy ratings respectively. The analysts' confidence is rooted in the potential of the company's drug candidate, obicetrapib, and its promising clinical trial results.
InvestingPro Insights
As NewAmsterdam Pharma (NASDAQ: NAMS) approaches its critical Phase 3 trials, InvestingPro data provides additional context to the company's financial position and market performance. With a market capitalization of $1.73 billion, NAMS has shown impressive stock performance, boasting a 173.19% price total return over the past year. This aligns with Piper Sandler's optimistic outlook and the potential of obicetrapib.
However, investors should note that NAMS is not currently profitable, with a negative operating income of $208.69 million in the last twelve months as of Q2 2024. This is not uncommon for biotech companies in the development stage, but it underscores the importance of the upcoming trials for the company's future.
InvestingPro Tips highlight that NAMS holds more cash than debt on its balance sheet, which could provide financial flexibility as it progresses through costly clinical trials. Additionally, the stock's recent strong return over the last month (20.98%) suggests growing investor confidence ahead of the anticipated trial results.
For those seeking a deeper analysis, InvestingPro offers 11 additional tips for NAMS, providing a more comprehensive view of the company's prospects and challenges.
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