On Wednesday, NewAmsterdam Pharma Co NV (NASDAQ: NAMS) received a positive outlook from TD Cowen, as the firm initiated coverage on the company's stock with a Buy rating. The endorsement is based on the potential of NewAmsterdam Pharma's drug candidate, Obicetrapib, which is seen as a best-in-class oral CETPi that could be used in conjunction with standard-of-care treatments to provide a more comprehensive benefit in lipid lowering.
The analyst from TD Cowen expressed confidence in the upcoming Phase III readouts for Obicetrapib, which are scheduled for the third quarter of 2024 for the BROOKLYN trial in HeFH, the fourth quarter of 2024 for the BROADWAY trial in ASCVD, and the first quarter of 2025 for the TANDEM trial in combination therapy. The positive sentiment is further bolstered by the projection of over $3 billion in global sales for Obicetrapib following its anticipated launch in 2027.
The analyst's remarks highlighted the strong management team at NewAmsterdam Pharma, which is deemed well-equipped to develop and bring these drugs to market. The statement emphasized that there could not be a better team to undertake the commercialization of these treatments.
InvestingPro Insights
As NewAmsterdam Pharma Co NV (NASDAQ: NAMS) garners attention with its promising drug candidate Obicetrapib, real-time data from InvestingPro provides additional context for investors considering the stock. Despite an analyst's enthusiasm for the drug's market potential, InvestingPro data indicates that the company is not expected to be profitable this year, with a notable sales decline in the recent period. Specifically, revenue has decreased by 87.64% over the last twelve months as of Q1 2024, and the company has an operating income margin of -2894.14%, reflecting significant losses relative to its revenue.
However, the company does exhibit some financial strengths. According to an InvestingPro Tip, NewAmsterdam Pharma holds more cash than debt on its balance sheet, which is a positive sign of financial stability. Moreover, liquid assets exceed short-term obligations, indicating the company's ability to cover short-term liabilities. Additionally, the stock has experienced a large price uptick of 106.03% over the last six months, possibly reflecting investor optimism about the company's future prospects.
For those looking to delve deeper, InvestingPro offers a wealth of additional insights, including a total of 9 InvestingPro Tips for NewAmsterdam Pharma, which can be found at https://www.investing.com/pro/NAMS. To access these tips and more detailed analytics, readers can use the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription.
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