NewAmsterdam Pharma Announces Pricing of $175.3 Million Public Offering of Ordinary Shares and Pre-Funded Warrants
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Insights
The announcement by NewAmsterdam Pharma Company regarding the pricing of its underwritten public offering is a significant event with potential implications for the company's financial health and its ability to fund ongoing operations. The offering includes both ordinary shares and pre-funded warrants, a common strategy to attract a broader range of investors, including those who may prefer the warrant route due to its lower upfront cost and potential for future conversion into shares.
The expected proceeds of approximately $175.3 million, before deductions, represent a substantial influx of capital. This capital infusion is crucial for a late-stage clinical biopharmaceutical company like NewAmsterdam, which typically faces high research and development costs, especially in the critical phase of bringing a new drug to market. The additional 30-day option for underwriters to purchase extra shares could further increase the total capital raised, providing a buffer for unforeseen expenses or additional research needs.
In analyzing the offering price of $19.00 per share and the pre-funded warrants at $18.9999, we see a strategic pricing approach aimed at making the warrants nearly equivalent to the shares, save for the nominal exercise price. This close pricing may encourage more investors to opt for the pre-funded warrants, which could lead to a more stable long-term shareholder base as these warrants are converted into ordinary shares over time.
From a market perspective, the successful pricing and anticipated closing of NewAmsterdam's offering could signal investor confidence in the company's potential to address the unmet needs in the cardiovascular therapeutic space. LDL-C is a well-established target in cardiovascular disease management and non-statin therapies are increasingly sought after due to the limitations of current statin treatments. As such, NewAmsterdam's focus on this area could position it favorably in a market that is both large and growing.
However, it is important for stakeholders to consider the competitive landscape. The entry of new oral, non-statin therapies could disrupt existing market dynamics and the ability of NewAmsterdam to capture market share will depend on the efficacy, safety and cost-effectiveness of its products compared to existing therapies and other products in development. The funds raised could therefore be critical in supporting late-stage trials, regulatory approval processes and potential commercialization efforts.
The biopharmaceutical industry is characterized by high risk and potentially high rewards, especially in the development of treatments for conditions with significant patient populations like cardiovascular disease. The financial strategy employed by NewAmsterdam, using a mix of ordinary shares and pre-funded warrants, is indicative of an aggressive approach to capital raising, which may be necessary given the substantial costs associated with late-stage clinical trials and the preparation for potential market entry.
Investors will be particularly interested in the company's pipeline and the progress of its lead candidates. The successful development and approval of a new oral, non-statin medicine for LDL-C management could be transformative for patients and the company alike, but it also carries the risk inherent in clinical development. The raised capital should help mitigate some of this risk by funding the necessary clinical trials, regulatory submissions and potentially the initial stages of commercialization, assuming the trials are successful.
NAARDEN, the Netherlands and MIAMI, Feb. 13, 2024 (GLOBE NEWSWIRE) -- NewAmsterdam Pharma Company N.V. (Nasdaq: NAMS; “NewAmsterdam” or the “Company”), a late-stage, clinical biopharmaceutical company developing oral, non-statin medicines for patients at risk of cardiovascular disease with elevated low-density lipoprotein cholesterol (“LDL-C”), for whom existing therapies are not sufficiently effective or well-tolerated, today announced the pricing of the previously announced underwritten public offering of (i) 4,488,159 of the Company’s ordinary shares, with a nominal value of
Jefferies, Leerink Partners, Piper Sandler, and RBC Capital Markets are acting as joint book-running managers for the Offering.
The Offering is being made pursuant to a registration statement on Form F-3, including a base prospectus, that was initially declared effective by the U.S. Securities and Exchange Commission (the “SEC”) on December 19, 2023. A preliminary prospectus supplement and accompanying prospectus relating to and describing the terms of the Offering were filed with the SEC and are available free of charge by visiting EDGAR on the SEC’s website at www.sec.gov. Copies of the final prospectus supplement, when available, and the accompanying prospectus may also be obtained free of charge from: Jefferies LLC, Attention: Equity Syndicate Prospectus Department, 520 Madison Avenue, New York, NY 10022, or by telephone at (877) 821-7388, or by email at Prospectus_Department@Jefferies.com; Leerink Partners LLC, Attention: Syndicate Department, 53 State Street, 40th Floor, Boston, MA 02109, or by telephone at (800) 808-7525, ext. 6105, or by email at syndicate@leerink.com; Piper Sandler & Co., Attention: Prospectus Department, 800 Nicollet Mall, J12S03, Minneapolis, MN 55402, or by telephone at (800) 747-3924, or by email at prospectus@psc.com; or RBC Capital Markets, LLC, Attention: Equity Capital Markets, 200 Vesey Street, 8th Floor, New York, NY 10281, or by telephone at (877) 822-4089, or by email at equityprospectus@rbccm.com.
This press release shall not constitute an offer to sell or the solicitation of an offer to buy any securities, nor shall there be any sale of these securities in any state or jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction.
About NewAmsterdam
NewAmsterdam (Nasdaq: NAMS) is a late-stage biopharmaceutical company whose mission is to improve patient care in populations with metabolic diseases where currently approved therapies have not been sufficiently successful or well-tolerated. The Company seeks to fulfill a significant unmet need for a safe, well-tolerated and convenient LDL-lowering therapy. In multiple Phase 3 clinical trials, NewAmsterdam is investigating obicetrapib, an oral, low-dose and once-daily CETP inhibitor, alone or as a fixed-dose combination with ezetimibe, as preferred LDL-C lowering therapies to be used as an adjunct to statin therapy for patients at risk of CVD with elevated LDL-C, for whom existing therapies are not sufficiently effective or well-tolerated.
Forward-Looking Statements
Certain statements included in this document that are not historical facts are forward-looking statements for purposes of the safe harbor provisions under the United States Private Securities Litigation Reform Act of 1995. Forward-looking statements generally are accompanied by words such as “believe,” “may,” “will,” “estimate,” “continue,” “anticipate,” “intend,” “expect,” “should,” “would,” “plan,” “predict,” “potential,” “seem,” “seek,” “future,” “outlook” and similar expressions that predict or indicate future events or trends or that are not statements of historical matters. These forward-looking statements include, but are not limited to, statements regarding the consummation of the proposed Offering. These statements are based on various assumptions, whether or not identified in this document, and on the current expectations of the Company’s management and are not predictions of actual performance. These forward-looking statements are provided for illustrative purposes only and are not intended to serve as and must not be relied on as a guarantee, an assurance, a prediction, or a definitive statement of fact or probability. Actual events and circumstances are difficult or impossible to predict and may differ from assumptions. Many actual events and circumstances are beyond the control of the Company. These forward-looking statements are subject to a number of risks and uncertainties, including changes in domestic and foreign business, market, financial, political, and legal conditions; risks relating to the uncertainty of the projected financial information with respect to the Company; risks related to the approval of the Company’s product candidate and the timing of expected regulatory and business milestones; ability to negotiate definitive contractual arrangements with potential customers; the impact of competitive product candidates; ability to obtain sufficient supply of materials; global economic and political conditions, including the Russia-Ukraine and Israel-Hamas conflicts; the effects of competition on the Company’s future business; and those factors described in the Company’s public filings with the SEC. Additional risks related to the Company’s business include, but are not limited to: uncertainty regarding outcomes of the Company’s ongoing clinical trials, particularly as they relate to regulatory review and potential approval for its product candidate; risks associated with the Company’s efforts to commercialize a product candidate; the Company’s ability to negotiate and enter into definitive agreements on favorable terms, if at all; the impact of competing product candidates on the Company’s business; intellectual property related claims; the Company’s ability to attract and retain qualified personnel; ability to continue to source the raw materials for its product candidate. If any of these risks materialize or the Company’s assumptions prove incorrect, actual results could differ materially from the results implied by these forward-looking statements. There may be additional risks that the Company does not presently know or that the Company currently believes are immaterial that could also cause actual results to differ from those contained in the forward-looking statements. In addition, forward-looking statements reflect the Company’s expectations, plans, or forecasts of future events and views as of the date of this document and are qualified in their entirety by reference to the cautionary statements herein. The Company anticipates that subsequent events and developments may cause the Company’s assessments to change. These forward-looking statements should not be relied upon as representing the Company’s assessment as of any date subsequent to the date of this communication. Accordingly, undue reliance should not be placed upon the forward-looking statements. Neither the Company nor any of its affiliates undertakes any obligation to update these forward-looking statements, except as may be required by law.
Stern Investor Relations on behalf of NewAmsterdam
Hannah Deresiewicz
P: 1 212-362-1200
hannah.deresiewicz@sternir.com
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