NewAmsterdam Pharma (NAMS) Could Be 58% Undervalued On First SPINOZA Dosing

NewAmsterdam Pharma (NasdaqGM:NAMS) has begun dosing in its SPINOZA Phase 2b trial of obicetrapib in preclinical Alzheimer’s disease, marking a new application for its CETP inhibitor program.

NewAmsterdam Pharma’s latest Alzheimer’s trial milestone comes after a tough stretch for the shares, with the price down 35.17% over 90 days and 38.71% year to date, even as the three year total shareholder return is 197.59%.

Scan beyond NewAmsterdam Pharma and size up 34 healthcare AI stocks that are quietly building positions in next-wave treatments for complex diseases like Alzheimer’s.

After a near 40% year to date slide, NewAmsterdam Pharma now splits opinion between investors who see fresh upside and those who think the big gains are already logged. Which view does the current valuation lean toward?

Most Popular Narrative: 58% Undervalued

NewAmsterdam Pharma closed at $21.58, while the most followed narrative pegs fair value closer to $50.92, which frames today’s pullback as a valuation gap that depends heavily on how its core obicetrapib program plays out.

The main requirement for success is that PREVAIL delivers a clinically meaningful cardiovascular outcomes benefit that is consistent with the 21% exploratory MACE reduction seen in BROADWAY and the pooled BROADWAY and BROOKLYN data.

The current valuation implies that NewAmsterdam Pharma already reflects expectations for a successful PREVAIL readout and a commercially meaningful outcomes label, leaving limited room for error but potential upside if the broader cardiometabolic and Alzheimer’s prevention strategy progresses as anticipated.

See why 2 investors see NewAmsterdam Pharma as 58% undervalued.

Result: Fair Value of $50.92 (UNDERVALUED)

Still, the whole NewAmsterdam Pharma story leans heavily on PREVAIL and on turning significant current losses into future profits. Any setback on outcomes or uptake could quickly challenge the undervalued argument.

Find out about the key risks to this NewAmsterdam Pharma narrative.

Next Steps

If the NewAmsterdam Pharma story so far feels split between risk and opportunity, treat that tension as your cue to move quickly and review the underlying data yourself, starting with the 3 key rewards.

Looking for more investment ideas beyond NewAmsterdam Pharma?

Do not stop at NewAmsterdam Pharma. Use this pullback as a prompt to widen your watchlist and pressure test your thesis against other stocks with different risk drivers.

• Target resilient compounding potential by scanning a 31 resilient stocks with low risk scores that leans on balance sheet strength and steadier risk profiles.
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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