Cholesterol Player NewAmsterdam Pharma's Obicetrapib Is A Potential Blockbuster In Cardiovascular Market: Bullish Analyst Says

Piper Sandler initiated coverage on NewAmsterdam Pharma Co. NV NAMS, a clinical-stage developing therapy for metabolic diseases, with lead asset obicetrapib, focused on the cardiovascular space going after a major market opportunity.

Obicetrapib is a novel, selective cholesteryl ester transfer protein (CETP) inhibitor that potently decreases low-density lipoprotein-cholesterol (LDL-C) as well as increases high-density lipoprotein-cholesterol (HDL-C) and the number of ApoA1-containing lipoproteins. 

Piper analyst writes that Obicetrapib is a next-generation CETP inhibitor designed to block the transfer of cholesteryl esters from HDL to LDL, directly reducing LDL-C levels in the body. 

Obicetrapib is differentiated and improved from existing CETP therapies through potent LDL-C lowering activity, tolerability, favorable oral administration, and pricing.

Piper has initiated with an Overweight rating and a price target of $37.

Analysts Yasmeen Rahimi and Emma Nesson write that Street observers may be unaware that approximately 26 million patients in the U.S. require lipid-lowering treatments, even with high-dose statins. 

The lipid-lowering therapy market shows a 7% compound annual growth rate (CAGR) over three years, while non-statin treatments exhibit an 18% 3-year CAGR, representing a significant blockbuster potential for obicetrapib.

In January, NewAmsterdam outlined its 2024 priorities, noting that it is positioned for three Phase 3 trial readouts over the next 18 months.

• Topline data expected from Phase 3 BROOKLYN trial in heterozygous familial hypercholesterolemia (HeFH) in 3Q 2024 and BROADWAY trial in atherosclerotic cardiovascular disease (ASCVD) in 4Q 2024.
•  Plan to initiate the TANDEM Phase 3 trial evaluating obicetrapib and ezetimibe fixed-dose combination in 1Q 2024; topline data is expected in 1Q 2025.
•  On-track to complete enrollment in Phase 3 PREVAIL CVOT in 1Q 2024; topline data expected in 2026.

Price Action: NAMS shares are up 1.25% at $17.75 on the last check Tuesday.