NewAmsterdam's Cholesterol Drug Shows Promise in Alzheimer's Prevention

NewAmsterdam Pharma's experimental cholesterol-lowering drug, obicetrapib, has demonstrated potential in combating Alzheimer's disease, according to recent clinical trial results. This development marks a significant advancement in the pharmaceutical industry's pursuit of effective treatments for neurodegenerative disorders.

Dual-Action Drug: Cardiovascular and Neurological Benefits

Obicetrapib, initially designed to regulate cholesterol levels in the body, has shown promising results in a large-scale clinical trial. The drug's primary function is to block a protein that regulates cholesterol, leading to significant reductions in LDL ("bad") cholesterol levels in patients.

In addition to its cardiovascular benefits, a pre-planned sub-study of the "Broadway" trial has revealed obicetrapib's potential in addressing Alzheimer's disease. The sub-study, which evaluated 1,727 patients, including 367 carriers of the APOE4 gene (a strong genetic risk factor for Alzheimer's), focused on measuring levels of p-tau217, a protein linked to Alzheimer's development.

Significant Reduction in Alzheimer's Biomarkers

Over a year-long treatment period, patients treated with obicetrapib experienced a significant reduction in p-tau217 levels. This effect was observed across both the broader patient group and the APOE4 gene carriers. The findings support the hypothesis that obicetrapib's lipid-lowering effects may protect neurons by reducing the accumulation of amyloid and tau proteins in the brain.

NewAmsterdam's CEO, Michael Davidson, stated that these results "strongly support a potential preventive strategy for Alzheimer's disease." The company plans to present more detailed data from the sub-study at the Alzheimer's Association International Conference in Toronto at the end of July.

Market Response and Future Prospects

The news has generated considerable excitement among investors and analysts. Matt Phipps of William Blair described the results as "intriguing," suggesting potential "significant long-term upside" for NewAmsterdam's stock price. Jefferies analyst Dennis Ding noted that the Alzheimer's opportunity could attract interest from strategic dealmakers.

Roanna Ruiz of Leerink Partners went further, arguing that the Broadway results not only differentiate obicetrapib from other oral drugs and PCSK9 inhibitors but also position NewAmsterdam to "pursue the blockbuster Alzheimer's market." TD Cowen's Tyler Van Buren even suggested that obicetrapib "can potentially be the first preventative therapy for Alzheimer's disease patients."

NewAmsterdam's shares responded positively to the news, with an initial 6% increase at market open, before settling around $20.20 per share by mid-afternoon.

The company is moving forward with its development plans, aiming to submit approval filings to global drug regulators based on data from its trio of late-stage studies. A submission to the European Medicines Agency is planned for the second half of this year.