Analyst Douglas Tsao of H.C. Wainwright maintained a Buy rating on Neumora Therapeutics, Inc., retaining the price target of $18.00.
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Douglas Tsao has given his Buy rating due to a combination of factors that highlight Neumora Therapeutics, Inc.’s promising developments in their M4 PAM program. The company has made significant progress by selecting NMRA-861 as their lead candidate for treating schizophrenia and other neuropsychiatric disorders, demonstrating best-in-class potential in preclinical studies. This candidate has shown higher potency and selectivity for the M4 receptor compared to previous candidates, and it has not exhibited adverse effects such as convulsions in animal studies.
Furthermore, Neumora’s strategic approach of targeting the allosteric site of the M4 receptor is expected to offer greater selectivity and efficacy than traditional orthosteric agonists. The company is also planning a Phase 1b proof-of-concept study following the promising results of the initial Phase 1a study, which aims to establish optimal dosing and CNS penetration. Despite potential risks such as regulatory challenges and the need for additional capital, the present value of Neumora’s projected revenue and the innovative nature of their pipeline support the Buy rating with a price target of $18.