RBC Capital Downgrades Neumora Therapeutics (NMRA) to Sector Perform

RBC Capital analyst Brian Abrahams downgraded Neumora Therapeutics (NASDAQ: NMRA) from Outperform to Sector Perform with a price target of $4.00 (from $29.00).

The analyst comments: "We are downgrading NMRA to Sector Perform based on lead drug navacaprant's surprising ph.III failure in MDD. Prior data from both NMRA and JNJ had looked promising, and we acknowledge MDD studies of the same drug can sometimes yield very different results, so the door may not be entirely closed, but with no signal at all in the overall population from this well-conducted, sizable ph.III, it is difficult to have significant conviction into the additional ph.III readouts this year or for navacaprant in other indications. Stock may have overshot a bit to the downside if one assumes any pipeline possibilities (PT to $4), and we believe the company has a strong mgmt team committed to a diverse and deep neuropsych portfolio that could bounce back from this failure over time, but for now, we believe it is prudent to move to the sidelines."

For an analyst ratings summary and ratings history on Neumora Therapeutics click here. For more ratings news on Neumora Therapeutics click here.

Shares of Neumora Therapeutics closed at $10.60 yesterday.

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