Stifel Nicolaus analyst Paul Matteis downgraded the rating on Neumora Therapeutics, Inc. (NMRA – Research Report) to a Hold yesterday, setting a price target of $2.00.
Paul Matteis has given his Hold rating due to a combination of factors affecting Neumora Therapeutics, Inc. The recent decision by Johnson & Johnson to discontinue the development of aticaprant in major depressive disorder (MDD) due to insufficient efficacy has significantly impacted the credibility of the KORA mechanism, which is central to Neumora’s therapeutic strategy. This development raises concerns about the efficacy potential of navacaprant, a compound similar to aticaprant, and undermines confidence in the company’s clinical trials.
While Neumora has made strategic adjustments to its KOASTAL-2/3 trial designs to enhance patient selection and improve the likelihood of success, the failure of the KOASTAL-1 trial to show meaningful results against placebo adds to the uncertainty. Additionally, other programs within Neumora’s pipeline, such as the M4 and V1AR in Alzheimer’s agitation, face challenges due to their early stages or speculative mechanisms. Given these uncertainties and the recent setbacks, Matteis’s Hold rating reflects a cautious stance on the stock’s near-term prospects.
Matteis covers the Healthcare sector, focusing on stocks such as Denali Therapeutics, Vertex Pharmaceuticals, and uniQure. According to TipRanks, Matteis has an average return of -0.7% and a 40.10% success rate on recommended stocks.
In another report released on March 3, RBC Capital also maintained a Hold rating on the stock with a $4.00 price target.