Needham, a well-known investment firm, has initiated coverage on NewAmsterdam Pharma Company N.V. (NAMS), a clinical-stage biopharma company developing obicetrapib, an oral cholesterol-lowering drug. This positive initiation comes on the heels of encouraging results from the Phase 3 BROOKLYN trial, the first of four studies in NewAmsterdam’s pivotal clinical development program.
The BROOKLYN trial evaluated obicetrapib in adult patients with heterozygous familial hypercholesterolemia whose LDL-C (bad cholesterol) was not adequately controlled despite being on maximally tolerated lipid-lowering therapies. The study achieved its primary endpoint, demonstrating a statistically significant and sustained reduction in LDL-C at both day 84 and day 365. Obicetrapib lowered LDL-C by 36.3% on day 84 and 41.5% on day 365, compared to a placebo group. These reductions were accompanied by statistically significant improvements in other relevant biomarkers.
Needham’s positive outlook on obicetrapib stems from its distinct advantages over previous CETP inhibitors. Previous CETP inhibitors faced challenges due to associated safety concerns, but obicetrapib appears to avoid these issues. The upcoming phase 3 trial results, expected in Q4 2024 and Q1 2025, could further validate obicetrapib’s significant LDL-C reduction and favorable safety profile. These positive results could translate into a potential reduction in major adverse cardiovascular events (MACE) by over 15% in the PREVAIL CVOT trial, with results anticipated in the second half of 2026.
Based on the promising data and potential for obicetrapib, Needham has assigned a Buy rating and a price target of $36 to NAMS. The firm forecasts that, if successful, obicetrapib could generate blockbuster sales exceeding $2 billion by targeting approximately 30 million patients.
NewAmsterdam further strengthened its position in June 2024 by securing a new US patent for obicetrapib, extending patent protection until July 2043. The company ended the second quarter with a cash position of $430.7 million, providing ample financial resources for ongoing development and commercialization efforts.
NAMS stock is currently trading at $16.69, up 0.12% at the last check. The positive initiation and price target from Needham reflect the growing confidence in the potential of obicetrapib to significantly impact the cholesterol-lowering market.
