10-Q · May 7, 2026
NAMS reported revenue of $3.0 million for Q1 2026, consistent with the prior year, despite significant operating losses. Operating expenses decreased over the period, leading to a narrower operating loss of $58.4…
Earnings analysis · 10-Q
NAMS earnings analysis
Filed August 5, 2026 · Our reading of the company's report
The latest report
NAMS reported Q2 2026 revenue of $3.7 million, down 81% year over year from $19.1 million as prior-year Menarini development funding did not recur; sequentially, revenue increased from an implied $3.0 million in Q1…
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NAMS reported Q2 2026 revenue of $3.7 million, down 81% year over year from $19.1 million as prior-year Menarini development funding did not recur; sequentially, revenue increased from an implied $3.0 million in Q1 based on the reported six-month total of $6.7 million. The net loss widened to $64.1 million from $17.4 million, driven by a 52% increase in R&D spending to $41.7 million, a warrant fair-value loss and unfavorable foreign exchange. The company retains $678.3 million of cash, cash equivalents and marketable securities, but valuation and outlook hinge on European approvals and the Q4 2026 PREVAIL interim analysis. No EPS, gross margin, segment revenue, capex, or explicit financial guidance was disclosed in the provided filing text.
Reported figures
- Operating margin
- -1752.6%
What stood out
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$678.3M liquidity and lower operating cash burn
Liquidity remains substantial at $678.3 million of cash, cash equivalents and marketable securities as of June 30, 2026. First-half operating cash use improved to $69.8 million from $74.1 million a year earlier, while the company states this cash is sufficient for its estimated $50.6 million of commitments due within one year and $11.4 million due thereafter.
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European approval path advances
The EMA's CHMP issued a positive opinion in July 2026 for both obicetrapib 10 mg monotherapy and the 10 mg/10 mg obicetrapib-ezetimibe FDC. If approvals are received, Menarini could launch in Germany and the UK in Q4 2026.
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R&D supports advancing pipeline
Clinical investment accelerated: Q2 clinical expense increased $11.1 million year over year to $24.0 million, contributing to a $14.2 million, or 52%, increase in total R&D expense to $41.7 million as trials were initiated and ongoing studies progressed.
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Major CV outcomes catalyst scheduled
PREVAIL enrolled at least 9,000 patients and management plans a blinded DSMB interim analysis in Q4 2026 after the last participant reaches the minimum 2.5-year follow-up period. A DSMB recommendation is expected in Q1 2027.
What to watch
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Revenue declined 81% as license income lapped
Q2 revenue fell 81% year over year to $3.7 million from $19.1 million because the prior-year period included $16.1 million from Menarini's second development-cost installment that did not recur. The filing does not report product-sales revenue or segment revenue, underscoring reliance on collaboration-related income before approval.
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Losses and operating margin deteriorated sharply
The quarterly loss widened to $64.1 million from $17.4 million and operating loss expanded to $64.9 million from $35.6 million. Operating margin was -1,752.6% on $3.7 million of revenue, versus -186.1% a year earlier; EPS was not disclosed in the provided filing text.
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PREVAIL interim analysis carries futility risk
A newly updated risk factor cautions that preliminary blinded PREVAIL trends may change as events are identified and adjudicated. The Q4 2026 interim analysis could lead the DSMB to recommend stopping for futility; if it continues, completion is expected only by the end of 2027.
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New reimbursement pressure could limit pricing
The updated healthcare-policy risk notes that Medicare may negotiate prices for 20 high-cost drugs annually beginning in 2029, while the redesigned Part D benefit requires manufacturer subsidies of 10% below and 20% above the out-of-pocket maximum. These measures could constrain pricing and reimbursement if obicetrapib is approved.
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Tariff changes threaten supply costs
The updated trade-policy risk cites a 10% baseline U.S. tariff imposed in April 2025 and a new worldwide tariff effective for 150 days from February 24, 2026. Tariffs on pharmaceutical ingredients or finished products could increase manufacturing costs and disrupt supply.
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Cash declined amid continuing development losses
Cash, cash equivalents and restricted cash declined to $425.5 million at June 30, 2026 from $491.3 million at the start of the year. Management reports $875.0 million of accumulated losses and expects significant losses for the foreseeable future.
Management's outlook
No quantitative financial revenue or EPS guidance was provided in the 10-Q. Management expects regulatory decisions on Menarini's European, UK and Swiss MAAs later in 2026; potential Germany and UK launches could occur in Q4 2026 if approved. PREVAIL's DSMB interim analysis is planned for Q4 2026, with a recommendation expected in Q1 2027; if the trial continues, management expects completion by the end of 2027.
Earlier filings 1
This is our reading of a public filing, not the filing itself. Analysis can contain errors; check the source document for full context.