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Citi initiated coverage of NewAmsterdam Pharma Co NV (NASDAQ:NAMS) with a buy rating and a $42.00 price target on Tuesday, joining other bullish analysts who set targets ranging from $37 to $52. According to InvestingPro data, the company currently has a market cap of $2.2 billion and maintains a strong financial position with more cash than debt on its balance sheet. The investment bank cited the pharmaceutical company’s development of obicetrapib, a cholesterol-lowering drug with significant market potential.
The research note highlighted the substantial unmet need in the LDL cholesterol (LDL-C) lowering market, stating that approximately 75% of patients with atherosclerotic cardiovascular disease still require additional therapies to reach their targeted LDL-C goal levels. InvestingPro analysis shows the company’s strong liquidity position with a current ratio of nearly 20x, suggesting ample resources to support its drug development programs.
Citi pointed to strong growth in the non-statin market, which has experienced high double-digit percentage growth year-over-year since 2020, indicating a favorable environment for new treatment options.
NewAmsterdam’s obicetrapib, a CETP inhibitor, aims to become a first-in-class agent that would serve as an add-on therapy for patients already taking statins who need additional help managing their cholesterol levels.
The investment bank also noted the drug’s potential for combination therapy with ezetimibe for patients requiring more aggressive lipid lowering, positioning NewAmsterdam to address multiple segments within the cholesterol management market.
In other recent news, NewAmsterdam Pharma has captured attention with its ongoing research and development activities. The company recently held an R&D Day, where it discussed the promising outcomes from its Phase 3 BROADWAY trial, revealing a 21% reduction in major adverse cardiovascular events (MACE). This trial highlighted the potential of their lead drug candidate, obicetrapib, in the lipid-lowering market. Analysts from Cantor Fitzgerald and Stifel have both maintained positive ratings on NewAmsterdam, with Cantor Fitzgerald reiterating an Overweight rating and a $42 price target, while Stifel has set a Buy rating with a $44 price target.
Stifel analysts highlighted the drug’s potential in the cardiovascular sector, projecting regulatory filings by 2025 or 2026. Furthermore, NewAmsterdam announced significant findings from a sub-study of the BROADWAY trial, showing reductions in Alzheimer’s disease biomarkers, suggesting a new avenue for obicetrapib’s application. The company’s PREVAIL outcomes study is progressing well, with no recommended changes from the Data and Safety Monitoring Board. Analysts remain optimistic about the drug’s future, with Stifel noting its potential to outperform in the pharmaceutical industry. NewAmsterdam’s strategic positioning and strong funding are seen as mitigating financial risks, setting the stage for potential future growth.
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