Stifel Downgrades Neumora Therapeutics (NMRA) to Hold

Stifel analyst Paul Matteis downgraded Neumora Therapeutics (NASDAQ: NMRA) from Buy to Hold with a price target of $2.00 (from $6.00).

The analyst comments: "We are downgrading NMRA to Hold. Before the JNJ news we still saw a credible Buy thesis: NMRA shares are trading near cash despite two additional ph3 shots-on-goal, and it’s well known that good/effective MDD drugs can fail in clinical trials. That said, the stock becomes much harder to defend here after JNJ announced that they are discontinuing the ph3 VENTURA program of aticaprant in adjunctive MDD due to “insufficient efficacy in the target patient population”. We had always seen the success of aticaprant in ph2 (hopefully to be repeated in ph3) as an important source of validation for the KORA mechanism, and navacaprant specifically. Thus, while NMRA management recently made an interesting case that the KOASTAL-1 trial could’ve failed by issues with conduct/execution, the aticaprant failure further undermines the efficacy potential of the class. Our updated target price is $2--modeling a 15% probability-of-success for navacaprant with modest pipeline credit."

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 $1.52 yesterday.

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