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July 26, 2022

NewAmsterdam Pharma enters merger deal with Frazier Lifesciences

The proceeds from the merger will be used to fund all anticipated milestones for obicetrapib before approval.

NewAmsterdam Pharma has signed a definitive business combination agreement with special purpose acquisition company (SPAC) Frazier Lifesciences Acquisition (FLAC).

The SPAC is sponsored by a Frazier Healthcare Partners affiliate.

The deal will make NewAmsterdam Pharma a publicly listed company focusing on oral treatments for cardiometabolic diseases.

Following the merger, NewAmsterdam Pharma CEO Dr Michael Davidson will lead the newly formed holding company, which is expected to be named NewAmsterdam Pharma Company.

Through an oversubscribed and upsized private investment in public equity (PIPE) led jointly by Frazier Healthcare Partners and Bain Capital Life Sciences, the combined business is expected to receive nearly $235m and funds held in the trust account of FLAC.

It will take the total pro forma cash balance of the merged business to a minimum of $470m apart from a total enterprise value of $326m.

This pro forma cash balance of nearly $470m is anticipated to offer a cash runway for the merged company through 2026. 

The proceeds from the merger will also fund all anticipated milestones for the lead candidate, obicetrapib, before approval, including data readouts from Phase III PREVAIL cardiovascular outcomes trial (CVOT) and two pivotal Phase III trials.

An oral, low-dose and once-a-day CETP inhibitor, obicetrapib demonstrated promising safety and >50% LDL-reducing efficacy when given along with high-intensity statins in dyslipidemia patients in a Phase IIb trial.

In addition, the company intends to use the proceeds for submitting new drug applications for obicetrapib in the US, Europe, Japan and China and its commercial launch. 

The business combination has obtained unanimous approvals from the board of directors of NewAmsterdam Pharma and FLAC.

Subject to necessary approvals and closing conditions, the merger is anticipated to conclude in the second half of this year.

Dr Davidson said: “We believe that the transaction, if consummated, would provide us with the necessary capital to fund our business through 2026 and beyond multiple Phase III data readouts for obicetrapib, including our ongoing cardiovascular outcomes trial and a potential global product launch.”

In January last year, NewAmsterdam Pharma raised $196m in a Series A funding round to support the full Phase III development of obicetrapib.

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