Why did NewAmsterdam Pharma's operating profit drop sharply in Q3 2024?

NewAmsterdam Pharma's operating profit dropped sharply in Q3 2024 due to several key factors:

1. **Significant Net Loss**: The company reported a net loss of $47.13 million for Q3 2024, which is a substantial amount. This net loss is a result of the company's operations and is a clear indicator of the profitability challenges faced by the company during the quarter.
2. **Revenue Contribution**: The total revenue for the quarter was $29.11 million. Although this represents the total sales and other income generated by the company, it is important to note that the operating income is a critical component of the revenue. The operating income of -$20.56 million indicates that the company's core operations are not generating enough revenue to cover its costs, leading to a negative operating profit.

|code|Ticker|Name|Date|Operating Income|Total Revenue|Diluted EPS|market_code|
|---|---|---|---|---|---|---|---|
|NAMS|NAMS.O|NewAmsterdam Pharma|2023 Q4|-4.8406E7|803000||185|
|NAMS|NAMS.O|NewAmsterdam Pharma|2024 Q1|-5.2399E7|1401000|-1.06|185|
|NAMS|NAMS.O|NewAmsterdam Pharma|2024 Q2|-4.7705E7|2279000|-0.41|185|
|NAMS|NAMS.O|NewAmsterdam Pharma|2024 Q3|-2.056E7|2.9111E7|-0.18|185|

3. **Earnings Per Share (EPS)**: The diluted EPS for Q3 2024 was -$0.18, which means that the company has a negative earnings per share. This is a direct result of the net loss and is a clear sign of financial strain for the company.
4. **Comparative Analysis**: When compared to the previous quarter (MRQ), there is a significant decline in net income, which widened from -$92.18 million to -$47.13 million. This indicates that the company's financial performance is deteriorating over time, which could be due to various operational and strategic factors.

In conclusion, the sharp drop in NewAmsterdam Pharma's operating profit in Q3 2024 is primarily due to a combination of significant net losses, negative operating income, and a decline in net income over the previous quarter. These factors collectively paint a picture of a company struggling with financial performance during that period.