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On Monday, H.C. Wainwright initiated coverage on NewAmsterdam Pharma Co NV (NASDAQ:NAMS), issuing a Buy rating with a $48.00 price target. The firm's analyst highlighted the potential of the company's leading drug candidate, obicetrapib, to be a game-changer for patients who are not achieving their cholesterol goals with statins alone.
The stock has shown remarkable momentum, delivering a 131.5% return over the past year, with analyst targets ranging from $29.14 to $52.59. For deeper insights into NAMS's potential, InvestingPro subscribers can access comprehensive research reports with expert analysis and valuation metrics.
NewAmsterdam Pharma, headquartered in the Netherlands, is currently developing obicetrapib as a next-generation treatment to lower LDL-C cholesterol. The medication is designed to be taken orally once a day and may be used alone or in combination with ezetimibe.
The analyst at H.C. Wainwright believes that obicetrapib could become the preferred lipid-lowering therapy for patients with hypercholesterolemia, whether due to atherosclerotic cardiovascular disease or heterozygous familial hypercholesterolemia.
According to InvestingPro data, the company maintains a strong financial position with a current ratio of 10.61 and more cash than debt on its balance sheet, providing runway for its development programs.
The optimism surrounding obicetrapib is bolstered by the positive top-line results from the Phase 3 BROADWAY trial reported on December 10, 2024. In this study, obicetrapib demonstrated a significant reduction in LDL-C levels compared to placebo. The BROADWAY trial showed a 33% reduction, while the BROOKLYN and TANDEM trials showed reductions of 36% and 40%, respectively.
A particularly encouraging outcome from the BROADWAY trial was the 21% reduction in the first 4-point major adverse cardiac events (MACE) at one year, which surpassed the expected 9% relative MACE risk reduction. This suggests that obicetrapib could offer significant cardiovascular benefits beyond its cholesterol-lowering effects. Moreover, the drug has been well-tolerated in trials, displaying a safety profile comparable to placebo.
Based on these findings, H.C. Wainwright anticipates that the ongoing Phase 3 CVOT PREVAIL study will show a 25% or greater benefit in MACE, which would be superior to other treatments currently available or in development, including injectable PCSK9 inhibitors. The firm's analyst expects obicetrapib to set a new standard for second-line therapy in reducing residual cardiovascular risk for patients on statin therapy.
While the company currently trades near its 52-week high of $27.29, InvestingPro analysis suggests the stock may be overvalued at current levels, though subscribers can access 13 additional ProTips and detailed financial metrics to make informed investment decisions.
In other recent news, NewAmsterdam Pharma Co NV has seen significant advancements in its clinical trials. Positive Phase 3 results for the company's leading drug candidate, obicetrapib, have prompted Scotiabank (TSX:BNS) to increase the price target for NewAmsterdam Pharma shares to $47, maintaining a Sector Outperform rating. The drug demonstrated a significant reduction in LDL-C, commonly known as bad cholesterol, and a 21% reduction in the incidence of major adverse cardiovascular events (MACE).
Furthermore, Leerink Partners raised their price target for NewAmsterdam to $45, while Piper Sandler and TD Cowen maintained positive ratings for the company. In addition, NewAmsterdam Pharma announced the suspension and termination of its previously filed Automatic Teller Machine (ATM) Prospectus related to a $150 million share sale plan.
The company has also restated its financial statements for the years ending 2022 and 2021 due to identified errors in the calculation of net loss per ordinary share. NewAmsterdam welcomed new board members, Mark C. McKenna and Wouter Joustra. Looking ahead, the company is preparing for the Phase 3 HORIZON trial of pelacarsen in 2025 and the Phase 3 BROADWAY trial readout, expected in the fourth quarter of 2024.
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