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WATERTOWN, Mass. - Neumora Therapeutics, Inc. (NASDAQ:NMRA), a clinical-stage biopharmaceutical company with a market capitalization of $146 million, has initiated a Phase 1 single-ascending dose/multiple-ascending dose study of NMRA-861 in healthy adults and adults with stable schizophrenia, the company announced Wednesday.
NMRA-861 is a positive allosteric modulator of the M4 muscarinic receptor that Neumora is developing for schizophrenia and other neuropsychiatric disorders. The company expects to report data from the Phase 1 study in the first quarter of 2026. According to InvestingPro data, four analysts have revised their earnings expectations upward for the upcoming period, with price targets ranging from $1.32 to $18 per share.
The drug candidate has shown activity in preclinical efficacy models and was well-tolerated in pre-clinical toxicology studies with no convulsions observed in rabbits, dogs, and rats, according to the company.
Unlike most current antipsychotics that work by blocking D2 dopamine receptors, NMRA-861 targets the M4 muscarinic receptor, an approach that may provide antipsychotic effects without the side effects associated with traditional treatments.
Schizophrenia affects approximately 3 million adults in the United States. Current treatments often have limitations, with a study by the National Institute of Mental Health finding that about 75 percent of people with schizophrenia discontinue medication within 18 months due partly to inefficacy or side effects.
Neumora licensed intellectual property rights related to NMRA-861 from the Warren Center for Neuroscience Drug Discovery at Vanderbilt University, including a composition of matter patent extending to 2044, excluding any patent term adjustment or extension.
The clinical-stage biopharmaceutical company currently has seven neuroscience programs in its therapeutic pipeline targeting various neuropsychiatric disorders and neurodegenerative diseases. InvestingPro analysis shows the company maintains a strong liquidity position with a current ratio of 8.98 and more cash than debt on its balance sheet, though it is currently burning through cash rapidly. Get access to 11 more exclusive ProTips and comprehensive financial analysis with an InvestingPro subscription.
This information is based on a company press release statement.
In other recent news, Neumora Therapeutics reported a net loss of $68 million for the first quarter of 2025, an increase from the $53.7 million loss in the same period last year. Despite the loss, the company has secured a $125 million debt facility, extending its cash runway into 2027, which provides financial stability for its ongoing initiatives. Neumora’s Board of Directors has proposed a reverse stock split, pending stockholder approval, to address non-compliance with Nasdaq’s minimum bid price requirement. The company is facing a potential delisting from The Nasdaq Global Select Market if it does not meet the minimum bid price requirement by November 10, 2025. Additionally, Neumora is advancing its clinical programs, with key data from NMRA-511 and COASTAL studies expected in late 2025 and early 2026. The firm’s strategic initiatives and robust pipeline suggest a competitive edge in the neuroscience market. Neumora’s focus on innovative treatments for brain diseases positions it uniquely within a sector facing significant unmet needs.
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