Why Neumora Therapeutics Analysts Are Bullish About Major Depressive Disorder Drug

Shares of Neumora Therapeutics Inc (NASDAQ: NMRA) were trading lower on Tuesday, a month after the company announced its IPO on the NASDAQ exchange.

RBC Capital Markets On Neumora Therapeutics

Analyst Brian Abrahams initiated coverage with an Outperform rating and price target of $24.

Neumora Therapeutics’ lead drug navacaprant showed statistically significant results in the Hamilton Rating Scale for Depression (HAM-D) in major depressive disorder (MDD), “in our view clinically meaningful in the context of existing SoC,” Abrahams said in the initiation note.

“Despite historical MDD indication challenges, we believe the solid data and multiple well-designed ph.IIIs should enable the drug to get over the line, with initial ph.III data 2H24 a key catalyst,” the analyst added.

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Stifel On Neumora Therapeutics

Analyst Paul Matteis initiated coverage with a Buy rating and price target of $26.

While the performance of Neumora Therapeutics’ stock over the next 12 to 18 months will likely be driven by data for the lead asset navacaprant, the company has “a deep early stage pipeline,” Matteis said in his initiation note.

“Ultimately though if navacaprant does work, we think KORAs (kappa opioid receptor antagonists), at least preliminarily, have the makings of a new blockbuster class in MDD,” he added.

William Blair On Neumora Therapeutics

Analyst Myles Minter initiated coverage with an Outperform rating and price target of $26.

“MDD is a debilitating condition affecting more than 21 million adults in the U.S. (about 50% actively treated), with standard-of-care SSRI/SNRIs leaving a significant unmet need,” Minter wrote in his initiation note.

“We view navacaprant’s kappa opioid receptor (KOR) antagonist mechanism as differentiated,” he added.

NMRA Price Action: Shares of Neumora Therapeutics were down 7.6% to $11.03 at the time of publication Tuesday.

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