Goldman Sachs initiates NewAmsterdam Pharma stock with Neutral rating

Published 17/07/2025, 12:22
Goldman Sachs initiates NewAmsterdam Pharma stock with Neutral rating

Investing.com - Goldman Sachs has initiated coverage on NewAmsterdam Pharma Co NV (NASDAQ:NAMS) with a Neutral rating and a $27.00 price target. The biotech company, currently valued at $2.35 billion, maintains a strong financial position with more cash than debt and a healthy current ratio of 20x. According to InvestingPro data, five analysts have recently revised their earnings expectations upward for the upcoming period.

The investment bank expects NAMS share price to remain range-bound due to the extended timeline until the company’s key catalyst - Phase 3 PREVAIL cardiovascular outcomes trial results for lead candidate obicetrapib, which are expected in late 2026.

Goldman Sachs expressed a constructive view on obicetrapib’s LDL-C lowering capabilities and other lipid effects that could translate into a robust risk reduction in the PREVAIL trial, noting that a 20%+ risk reduction for major adverse cardiovascular events could make it a significant addition to post-statin lipid lowering therapies.

The firm highlighted that while obicetrapib appears differentiated based on current data, four previous molecules in the CETP class failed to reach market, and NAMS’ value proposition will be partially determined by competing late-stage lipid lowering programs.

These competing programs include Merck (NSE:PROR)’s oral PCSK9 enlicitide chloride, which will report Phase 3 results in Q4 2025, and Novartis (SIX:NOVN)’ pelacarsen targeting Lp(a), with cardiovascular outcomes trial results expected in the first half of 2026 that could influence how lipidologists perceive the target.

In other recent news, NewAmsterdam Pharma has been the focus of multiple analyst evaluations and strategic developments. Citi initiated coverage with a buy rating, highlighting the potential of NewAmsterdam’s cholesterol-lowering drug, obicetrapib, amidst a growing need for LDL cholesterol management. This comes as Cantor Fitzgerald reiterated its Overweight rating, emphasizing the company’s progress in its clinical trials, particularly the PREVAIL outcomes study, which is proceeding as expected. Stifel also reiterated its buy rating, noting the drug’s differentiated position in the lipid-lowering market and a potential $4.5 billion market opportunity.

In addition, Stifel initiated coverage with a buy rating, setting a $44 price target and underscoring the drug’s promising prospects in cardiovascular treatments. Alongside these analyst insights, NewAmsterdam Pharma recently updated the employment agreement with its chief scientific officer, Dr. John Kastelein, which includes provisions for severance and stock options in the event of a change in control. These recent developments suggest a strong interest in NewAmsterdam’s strategic positioning and future potential in the pharmaceutical landscape.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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