Neumora's IPO bookrunner Stifel cuts to 'hold' after J&J setback

Brokerage Stifel cuts rating on Neumora Therapeutics NMRA.O to "hold" from "buy" after Johnson & Johnson JNJ.N scrapped trials of a depression drug similar to NMRA's navacaprant

Stifel among six joint-bookrunners of NMRA's IPO in 2023; at least two others including JP Morgan and RBC have cut ratings on Neumora in recent months

J&J said on Thursday it will stop late-stage studies of its experimental drug, aticaprant, for major depressive disorder due to a lack of sufficient efficacy

"We had always seen the success of aticaprant ... as an important source of validation for the KORA mechanism," says Stifel, referring to the class of drugs known as KOR antagonists

NMRA stock plunged about 80% in early January after its experimental drug navacaprant flunked a late-stage trial in depression patients

Stifel cuts PT to $2 from $6, a ~31% upside to stock's last close; shares down about 90% since IPO in September 2023