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Investing.com - H.C. Wainwright has reiterated its Buy rating and $18.00 price target on Neumora Therapeutics (NASDAQ:NMRA) following the company’s selection of a new lead M4 PAM candidate for schizophrenia treatment. According to InvestingPro data, analyst targets for NMRA range from $1.32 to $18.00, with the stock showing a significant 24% return over the past week despite falling 90% year-to-date.
The biopharmaceutical company announced the initiation of a Phase 1 single-ascending dose/multiple-ascending dose study of NMRA-861 in healthy adult participants and adults with stable schizophrenia. Data from this study is expected in the first quarter of 2026.
NMRA-861 replaces the company’s previous lead candidate NMRA-266, which was placed on hold after showing convulsions in rabbits during preclinical studies. The company noted that the new candidate is structurally distinct from its predecessor and has not shown convulsions in rabbits, dogs, or rats during preclinical testing.
Neumora maintains that targeting the allosteric site with a positive allosteric modulator (PAM) approach provides greater selectivity for M4 over other muscarinic sub-types compared to targeting the orthosteric site. The company believes PAMs allow for more precise potentiation of M4 while maintaining the spatial and temporal signaling dynamics of acetylcholine.
The company also has a second M4 PAM candidate approaching Investigational New Drug (IND) filing, which management views as part of a potential "two molecule" franchise rather than merely a backup candidate, suggesting it could be advanced for different indications. With a market cap of $165 million and an overall Financial Health score of "Fair" according to InvestingPro, investors can access 12 additional ProTips and comprehensive financial analysis through an InvestingPro subscription.
In other recent news, Neumora Therapeutics reported a net loss of $68 million for the first quarter of 2025, an increase from $53.7 million in the same period last year. Despite this loss, the company has secured a $125 million debt facility, extending its cash runway into 2027, which may provide financial stability for its ongoing and future projects. Neumora has also initiated a Phase 1 trial for its schizophrenia drug, NMRA-861, with results expected in early 2026. This drug targets the M4 muscarinic receptor, potentially offering antipsychotic effects without the side effects of traditional treatments.
Additionally, Neumora faces a delisting risk from the Nasdaq due to non-compliance with the minimum bid price requirement. The company’s Board of Directors has proposed a reverse stock split to address this issue, pending stockholder approval. Meanwhile, Neumora is progressing with its clinical programs, expecting key data from NMRA-511 and COASTAL studies by late 2025 and early 2026. The company has a strong pipeline of neuroscience programs and is focused on advancing treatments for various neuropsychiatric disorders. Neumora’s strategic initiatives and robust financial planning continue to shape its approach to tackling significant unmet needs in the neuroscience sector.
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