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Neumora Therapeutics, Inc. (NMRA)
NASDAQ:NMRA
US Market
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Neumora Therapeutics, Inc. (NMRA) AI Stock Analysis

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Neumora Therapeutics, Inc.

(NASDAQ:NMRA)

Rating:33Underperform
Price Target:
Neumora Therapeutics, Inc. is significantly challenged by its financial position, with ongoing losses and no revenue. Technical analysis indicates bearish momentum, and valuation is difficult in the absence of earnings. While promising pipeline advancements and a strong cash position offer some optimism, the overall outlook is hindered by recent clinical setbacks and financial instability.
Positive Factors
Financial Stability
A non-dilutive debt financing with K2 HealthVentures extends the cash runway into 2027 and potentially beyond.
Pharmacological Profile
NMRA-861 has demonstrated a potentially best-in-class pharmacological profile and has been safe and well tolerated in toxicology studies.
Pipeline Potential
Neumora is not just focused on a single product, and other innovative pipeline assets like the V1aR antagonist and M4 programs can also create meaningful shareholder value.
Negative Factors
Clinical Hold
NMRA-266 was placed on clinical hold due to preclinical convulsion signals observed in rabbits.
Regulatory Challenges
Risks include the regulatory challenge as none of Neumora's products has been approved by the FDA.
Study Outcomes
The failure of KOASTAL-1 study and J&J discontinuing aticaprant development continues to be an overhang on the stock.

Neumora Therapeutics, Inc. (NMRA) vs. SPDR S&P 500 ETF (SPY)

Neumora Therapeutics, Inc. Business Overview & Revenue Model

Company DescriptionNeumora Therapeutics, Inc., a clinical-stage biopharmaceutical company, engages in developing therapeutic treatments for brain diseases, neuropsychiatric disorders, and neurodegenerative diseases. The company develops navacaprant (NMRA-140), a novel once-daily oral kappa opioid receptor antagonist, which is in phase 3 clinical trials for the treatment of major depressive disorder. It also develops NMRA-511 that is in phase 1 clinical trials in patients with agitation associated with dementia due to Alzheimer's disease; and NMRA-266, which is in the phase 1 clinical trial for the treatment of schizophrenia and other neuropsychiatric disorders. In addition, its preclinical phase product includes NMRA-NMDA for the treatment of schizophrenia; NMRA-CK1d, a CK1d inhibitor program for the treatment of amyotrophic lateral sclerosis; NMRA-NLRP3 for the treatment of certain neurodegenerative conditions; and NMRA-GCase for the treatment of Parkinson's disease. The company was formerly known as RBNC Therapeutics, Inc. and changed its name to Neumora Therapeutics, Inc. in October 2021. Neumora Therapeutics, Inc. was incorporated in 2019 and is headquartered in Watertown, Massachusetts.
How the Company Makes MoneyNeumora Therapeutics, Inc. generates revenue through the development and commercialization of its precision medicines. The company focuses on advancing its pipeline of investigational therapies through various stages of clinical trials, aiming for regulatory approval and subsequent market entry. Revenue is primarily derived from the successful commercialization of approved drugs. Additionally, Neumora may engage in strategic partnerships and collaborations with other pharmaceutical companies, which can include licensing agreements, joint ventures, or co-development arrangements, providing additional revenue streams and resources to support its research and development activities.

Neumora Therapeutics, Inc. Earnings Call Summary

Earnings Call Date:May 12, 2025
(Q1-2025)
|
% Change Since: 102.90%|
Next Earnings Date:Aug 12, 2025
Earnings Call Sentiment Neutral
Neumora Therapeutics reported significant advancements in their pipeline and financial strength, positioning them well for future milestones. However, challenges in clinical study enrollment and increased net losses indicate hurdles that need addressing.
Q1-2025 Updates
Positive Updates
Strong Financial Position
Neumora entered into a $125 million debt facility with K2 HealthVentures, with $40 million available for draw this year. This strengthens their financial position, allowing operations to extend into 2027.
Pipeline Advancements
Neumora is advancing multiple programs such as NMRA-511 and navacaprant, with significant upcoming data milestones expected in 2025 and 2026.
Intellectual Property Portfolio
Neumora's pipeline is supported by a strong intellectual property portfolio with worldwide rights and composition of matter patents extending into the 2040s.
Novel Mechanisms in Development
The company is focusing on novel mechanisms of action in neuroscience drug development, such as the kappa opioid receptor antagonist and M4 PAMs.
Negative Updates
Increased Net Loss
Net loss for the first quarter of 2025 was $68 million, compared to $53.7 million for the same period in 2024.
KOASTAL-1 Study Anomalies
KOASTAL-1 results were not representative of the MDD population, prompting changes in site selection, patient screening, and medical monitoring for KOASTAL-2 and KOASTAL-3.
Potential Enrollment Challenges
Steps to ensure appropriate patient enrollment in KOASTAL-2 and KOASTAL-3 could potentially impact enrollment pace, though it is stated to be consistent with expectations.
Previous Study Failures
Noted that many approved medicines in MDD have failed individual Phase 3 studies, highlighting the challenges in ensuring successful outcomes for the KOASTAL program.
Company Guidance
During Neumora Therapeutics' First Quarter 2025 Financial Results Conference Call, several key metrics were provided. The company is on track to deliver top-line data for NMRA-511 in Alzheimer's disease agitation by the end of 2025. The Phase 3 KOASTAL program for navacaprant in major depressive disorder (MDD) is ongoing, with top-line data for KOASTAL-3 expected in the first quarter of 2026 and KOASTAL-2 in the second quarter of 2026. A $125 million debt facility was secured, with $20 million drawn at close, extending the cash runway into 2027. The net loss for the first quarter of 2025 was $68 million, and cash, cash equivalents, and marketable securities were $249.4 million as of March 31, 2025.

Neumora Therapeutics, Inc. Financial Statement Overview

Summary
Neumora Therapeutics, Inc. faces significant financial challenges with no revenue and substantial ongoing losses. While it maintains a strong cash position, financial instability is highlighted by negative equity and consistent cash outflows, indicating a dependency on external capital.
Income Statement
10
Very Negative
Neumora Therapeutics, Inc. has consistently reported zero revenue over the past several years, indicating a lack of monetization. All profitability metrics are negative, reflecting the company's inability to generate income. The company has significant ongoing losses, with a worsening EBIT and Net Income, suggesting high operational costs and financial strain typical for early-stage biotechnology firms.
Balance Sheet
20
Very Negative
The company maintains a strong cash position relative to its total assets, indicating good liquidity. However, continuing losses have resulted in negative equity in some years, posing a risk. The debt-to-equity ratio is not meaningful due to negative equity in prior periods, but low total debt suggests limited leverage. The equity position improved slightly, but overall financial health is weak.
Cash Flow
15
Very Negative
Neumora Therapeutics, Inc. shows consistent negative free cash flow, reflecting cash burn typical of R&D-heavy biotechnology companies. The cash flow from financing activities has been positive, indicating reliance on external funding to support operations. The operating cash flow has been negative, consistent with the lack of revenue generation.
BreakdownDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue0.000.000.000.000.00
Gross Profit0.00-668.00K-2.70M-1.55M0.00
EBITDA-242.98M-187.53M-135.28M-236.78M-95.41M
Net Income-243.79M-235.93M-130.90M-237.31M-99.27M
Balance Sheet
Total Assets316.97M496.19M426.23M429.30M197.95M
Cash, Cash Equivalents and Short-Term Investments307.58M453.98M371.88M409.25M191.98M
Total Debt1.85M5.23M8.44M2.05M2.04M
Total Liabilities29.91M27.12M873.08M754.52M292.33M
Stockholders Equity287.06M469.08M-446.85M-325.22M-94.38M
Cash Flow
Free Cash Flow-182.94M-163.40M-115.41M-76.24M-28.06M
Operating Cash Flow-182.94M-163.28M-114.90M-75.42M-26.76M
Investing Cash Flow-70.56M64.39M-168.01M-817.00K-11.24M
Financing Cash Flow21.60M231.94M115.74M293.51M230.10M

Neumora Therapeutics, Inc. Technical Analysis

Technical Analysis Sentiment
Neutral
Last Price1.40
Price Trends
50DMA
0.85
Positive
100DMA
0.95
Positive
200DMA
4.78
Negative
Market Momentum
MACD
0.17
Negative
RSI
82.81
Negative
STOCH
88.82
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For NMRA, the sentiment is Neutral. The current price of 1.4 is above the 20-day moving average (MA) of 0.98, above the 50-day MA of 0.85, and below the 200-day MA of 4.78, indicating a neutral trend. The MACD of 0.17 indicates Negative momentum. The RSI at 82.81 is Negative, neither overbought nor oversold. The STOCH value of 88.82 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for NMRA.

Neumora Therapeutics, Inc. Risk Analysis

Neumora Therapeutics, Inc. disclosed 78 risk factors in its most recent earnings report. Neumora Therapeutics, Inc. reported the most risks in the "Tech & Innovation" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 1 New Risks
1.
We are currently subject to and may be subject to additional future securities class action litigation. Q4, 2024

Neumora Therapeutics, Inc. Peers Comparison

Overall Rating
UnderperformOutperform
Sector (52)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
66
Neutral
$230.21M-140.82%-48.37%-44.70%
58
Neutral
$137.00M-58.55%825.97%38.32%
52
Neutral
$7.47B-0.04-63.86%2.34%16.17%0.25%
39
Underperform
$129.14M-26.10%30.76%
39
Underperform
$175.45M-75.60%-2.29%
37
Underperform
$297.68M-65.19%-47.28%
33
Underperform
$234.53M-79.05%-0.42%
* Healthcare Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
NMRA
Neumora Therapeutics, Inc.
1.71
-9.28
-84.44%
ALDX
Aldeyra Therapeutics
5.03
1.16
29.97%
CLLS
Cellectis SA
1.93
-0.23
-10.65%
EDIT
Editas Medicine
2.73
-2.57
-48.49%
RAPT
RAPT Therapeutics
10.23
-17.21
-62.72%
NKTX
Nkarta
2.00
-4.65
-69.92%

Neumora Therapeutics, Inc. Corporate Events

Executive/Board ChangesBusiness Operations and Strategy
Neumora Therapeutics Announces Leadership Changes and Strategy
Neutral
Feb 13, 2025

On February 13, 2025, Neumora Therapeutics announced leadership changes effective February 14, 2025, with Paul L. Berns transitioning to CEO and Chairman of the Board. Other key executives such as Joshua Pinto, Bill Aurora, and Michael Milligan have been assigned new roles. These changes are part of the company’s strategic efforts to enhance its position in the industry. Additionally, the Board approved an option repricing plan to incentivize key personnel, subject to stockholder approval, reflecting Neumora’s commitment to retaining talent while advancing its neuroscience initiatives.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Apr 21, 2025