On Wednesday, Scotiabank (TSX:BNS) increased its price target for NewAmsterdam Pharma Co NV (NASDAQ: NAMS) shares to $47, up from the previous target of $35, while maintaining a Sector Outperform rating. The adjustment follows the announcement of positive Phase 3 clinical trial results for the company's leading drug candidate, obicetrapib. According to InvestingPro data, NAMS stock has surged 43% in the past week alone, trading near its 52-week high of $26.36, reflecting strong market confidence in these results.
The BROADWAY Phase 3 trial results, which were highly anticipated, confirmed the efficacy of obicetrapib, a CETP inhibitor. The drug demonstrated a significant reduction in LDL-C, commonly known as bad cholesterol, when used in conjunction with maximally-tolerated statins in a diverse patient population with hyperlipidemia.
Additionally, the trial showed a 21% reduction in the incidence of major adverse cardiovascular events (MACE) just one year after patients began oral monotherapy with obicetrapib. This performance is comparable to the results seen with anti-PCSK9 injectables after more than two years of treatment.
The promising results have led Scotiabank to increase the probability of obicetrapib's approval from 70% to 90%. The analyst noted that these findings significantly reduce the risks associated with the upcoming PREVAIL MACE outcome Phase 3 study, expected to report in 2026.
Scotiabank's analyst believes that the strong clinical performance of obicetrapib positions NewAmsterdam Pharma for a likely acquisition in the near future. The raised price target reflects the optimistic outlook on the drug's market potential and regulatory success.
In other recent news, NewAmsterdam Pharma has experienced significant developments. The company recently reported positive results from its Phase 3 BROADWAY and TANDEM trials evaluating obicetrapib, a drug candidate for cardiovascular disease. The BROADWAY trial showed a 33% decrease in low-density lipoprotein cholesterol (LDL-C) levels and a 21% reduction in major adverse cardiovascular events, while the TANDEM trial demonstrated a significant 48.6% reduction in LDL-C levels, exceeding expectations.
In response to these outcomes, Leerink Partners raised their price target for NewAmsterdam to $45, while Piper Sandler and TD (TSX:TD) Cowen maintained positive ratings for the company. NewAmsterdam also announced the suspension and termination of its previously filed Automatic Teller Machine (ATM) Prospectus related to a $150 million share sale plan.
Moreover, the company restated its financial statements for the years ending 2022 and 2021 due to identified errors in the calculation of net loss per ordinary share. Additionally, 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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