Shares of NewAmsterdam Pharma crashed Wednesday after the company said its experimental cholesterol treatment lowered "bad" LDL by roughly 50%.
The company's combination of drugs called obicetrapib and ezetimibe reduced LDL cholesterol by an average 52.2% after 84 days. At the median, the reduction was 54%. The combination outperformed the placebo by an average of 48.6%.
William Blair analyst Matt Phipps says the results generally line up with investors' expectations. But they fell short of a midstage study called Rose2 where the two drugs led to an average 59% reduction in LDL cholesterol.
NewAmsterdam Pharma stock tumbled 15.5% to 20.01. Shares closed below the lower boundary of a cup base they're currently forming, MarketSurge shows.
According to a recent survey, most investors expected NewAmsterdam's fixed-dose combination, or FDC, to lead to a 50% to 54% reduction in LDL cholesterol, Phipps said in his report. The company is also testing obicetrapib, alone, in cholesterol treatment.
"The results were highly statistically significant versus placebo, and support regulatory filings of the FDC," he said.
Phipps kept his outperform rating on NewAmsterdam Pharma stock.
Shares have an IBD Digital Relative Strength Rating of 94. This means they rank in the top 6% of all stocks when it comes to 12-month performance.
Follow Allison Gatlin on X, the platform formerly known as Twitter, at @IBD_AGatlin.
