NewAmsterdam Pharma Co N.V. (NASDAQ:NAMS) CEO Michael H. Davidson has recently increased his stake in the company through the acquisition of additional shares. The transaction, which took place on June 20th, involved the purchase of 5,000 ordinary shares at a weighted average price of $17.2617 per share, totaling approximately $86,308.
The shares were bought in multiple transactions with prices ranging from $17.115 to $17.60. The exact amounts and pricing details of each individual transaction within this range can be provided upon request by the issuer, any security holder of the issuer, or the staff of the Securities and Exchange Commission.
Following the purchase, Davidson's direct holdings in NewAmsterdam Pharma have increased to 204,784 ordinary shares. Additionally, it is noteworthy that 608,779 ordinary shares are held by Stichting Administratiekantoor EPNAP ("STAK EPNAP") and are subject to forfeiture. These shares are under the control of STAK EPNAP, which has sole voting and investment power over them. However, in the event of cancellation of the depositary receipts by STAK EPNAP's board of directors, Davidson could potentially become the beneficial owner of these securities.
This move by the CEO demonstrates a commitment to the company and may be seen as a positive sign by investors who often look to insider transactions as an indicator of confidence in the company's future prospects. Davidson's role as both a director and officer of NewAmsterdam Pharma, along with this recent investment, aligns his interests closely with those of other shareholders.
The filing was signed on behalf of Davidson by Louise Kooij, under the power of attorney, on June 24th, indicating the official completion of the transaction.
In other recent news, NewAmsterdam Pharma has been making waves with its cholesterol-lowering drug, obicetrapib. The drug, currently in Phase III clinical trials, is expected to prove its LDL lowering capabilities by the latter half of 2024, with a cardiovascular outcomes trial anticipated in the second half of 2026. Analysts from RBC Capital Markets and TD Cowen have given the company an "Outperform" and "Buy" rating respectively, reflecting confidence in the drug's potential. The projected global sales for obicetrapib following its anticipated launch in 2027 exceed $1.3 billion, according to TD Cowen.
In recent developments, Juliette Audet has been appointed as the new Chief Business Officer of NewAmsterdam Pharma. Audet, who has over a decade of experience in the biopharmaceutical industry, was instrumental in the early stages of the company and has contributed significantly to the development of obicetrapib. Her appointment coincides with her resignation from the company's Board of Directors, a position she held since 2020.
On the financial front, analysts maintain a positive outlook with a price target consistently set at $31.00. This bullish perspective is based on the anticipation of rapid commercial launch and projected out-year sales opportunities exceeding $1.3 billion. The company's management has also expressed confidence in the favorable regulatory and payer environments, which are seen as positive signs for a strong future launch.
InvestingPro Insights
Amidst the news of NewAmsterdam Pharma Co N.V. (NASDAQ:NAMS) CEO Michael H. Davidson's recent share purchase, the company's financial metrics and analyst expectations provide additional context for investors. NewAmsterdam Pharma's market capitalization currently stands at approximately $1.62 billion, reflecting the scale of the company within the pharmaceutical industry. Despite challenging market conditions, the CEO's increased stake could be interpreted as a strong belief in the company's value and strategic direction.
InvestingPro Tips highlight that NewAmsterdam Pharma holds more cash than debt on its balance sheet, which is a positive sign of financial stability and may have influenced the CEO's decision to invest further in the company. Additionally, three analysts have revised their earnings upwards for the upcoming period, suggesting potential optimism about the company's future performance. However, it's important to note that analysts anticipate a sales decline in the current year and do not expect the company to be profitable this year.
Investors analyzing the company's valuation metrics will notice that NewAmsterdam Pharma is trading at a high revenue valuation multiple with a P/E ratio of -6.59, which has adjusted to -8.46 over the last twelve months as of Q1 2024. The company's revenue has experienced a significant contraction, with a decrease of 88.66% over the last twelve months. Despite the revenue challenges, the gross profit margin stands at 100%, indicating that the company's core operations remain efficient.
For those looking to delve deeper into NewAmsterdam Pharma's financials and strategic outlook, additional InvestingPro Tips are available, providing a comprehensive analysis of the company's potential. Interested investors can also take advantage of a special offer using the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription.
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