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Investing.com -- JPMorgan downgraded Neumora Therapeutics to Underweight from Neutral, warning the drug developer could face more setbacks after a key depression trial failed earlier this year.
Neumora’s lead drug, navacaprant, did not meet its main goals in a phase 3 trial for major depressive disorder, raising doubts about the treatment’s potential.
JPM said upcoming late-stage trial readouts in 2026 remain high risk despite the company making changes to patient screening and trial monitoring.
The brokerage said interest may build in early-stage data from other pipeline assets, including NMRA-511 for agitation in Alzheimer’s disease and NMRA-861 for schizophrenia, but added these programs are still years away from being proven.
Neumora’s recent decision to enter the obesity field with its NMRA-215 drug was also flagged as a long-term, early-stage bet.
“While we are not arguing there is significant downside from current levels, we worry about the potential for further negative clinical updates over the next several quarters adding to the current negative sentiment on shares,” JPMorgan said.
Neumora had $217.6 million in cash and equivalents at the end of June, enough to fund operations into 2027, according to company estimates.