On Tuesday, Piper Sandler maintained a positive outlook on NewAmsterdam Pharma Co NV (NASDAQ: NAMS), reiterating an Overweight rating with a $37.00 price target. The affirmation follows the company's presentation at the American Heart Association (AHA) of their Phase 3 BROOKLYN study findings, which involved 354 patients with heterozygous familial hypercholesterolemia (HeFH).
The data shared at the AHA revealed significant reductions in lipoprotein(a), or Lp(a), levels, with a decrease of 45.9% at 84 days and 54.3% by day 365. The study drug, obicetrapib, also showed a robust treatment benefit across a range of lipid and inflammatory parameters, including ApoB, HDL-C, non-HDL-C, triglycerides, LDL-P, and hsCRP.
The analyst highlighted the importance of Lp(a) lowering in cardiovascular risk management, noting that the recent data on Lilly's muvalaplin, a selective Lp(a) inhibitor, underscored the significance of targeting this lipid component. The comparison further emphasized obicetrapib's potential as a comprehensive oral therapy addressing residual cardiovascular risk, including Lp(a) efficacy.
Piper Sandler's communication also included an invitation to contact them for the updated Volume 6 NAMS Excel tracker, which provides detailed analysis and tracking of the company's progress. Looking ahead, the analyst anticipates the upcoming Phase 3 BROADWAY and TANDEM FDC (NS:FDC) study readouts in the fourth quarter of 2024 to be key events that could significantly impact the company's stock.
In other recent news, NewAmsterdam Pharma Co NV has announced a restatement of its financial statements for the years ending 2022 and 2021 due to identified errors in the calculation of net loss per ordinary share. Meanwhile, the company 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. The company has also welcomed new members, Mark C. McKenna and Wouter Joustra, to its Board of Directors.
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.
Furthermore, the company's management expressed confidence in obicetrapib's potential for demonstrating a major adverse cardiac events (MACE) benefit, which is crucial for the drug's competitive edge. The upcoming Phase 3 HORIZON trial of pelacarsen in 2025 is expected to indirectly support obicetrapib by establishing the relationship between Lp(a) levels and MACE outcomes.
InvestingPro Insights
NewAmsterdam Pharma Co NV (NASDAQ: NAMS) has shown impressive market performance, with InvestingPro data revealing a striking 160.95% price total return over the past year. This aligns well with the positive outlook maintained by Piper Sandler and the promising results from the Phase 3 BROOKLYN study.
InvestingPro Tips highlight that NAMS holds more cash than debt on its balance sheet and has liquid assets exceeding short-term obligations. These financial strengths could provide the company with the flexibility needed to continue its research and development efforts, particularly as it approaches the crucial Phase 3 BROADWAY and TANDEM FDC study readouts in Q4 2024.
Despite the strong market performance, it's worth noting that analysts do not anticipate the company to be profitable this year, according to another InvestingPro Tip. This is not uncommon for biotech companies in the development stage and underscores the importance of the upcoming study results for NAMS's future prospects.
For investors seeking a more comprehensive analysis, InvestingPro offers 11 additional tips that could provide valuable insights into NAMS's financial health and market position.
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