J.P.Morgan downgrades Neumora, citing challenges in depression drug development

** J.P.Morgan cuts rating on biopharmaceutical company Neumora Therapeutics NMRA.O after co's lead drug candidate, navacaprant, fails to meet main and key secondary goals of a late-stage trial to treat major depressive disorder

** NMRA downgraded to "underweight" from "neutral" as JP Morgan expects co to underperform in two other late-stage trials that are "inherently high risk"

** Brokerage sees NMRA's recent strategic decision to move into obesity as ambitious but premature, given the early stage of development of its drug, NMRA-215

** "While the company is focused on strategies to optimize/improve the chance for success, we still see navacaprant as a 'show-me' asset given the historical challenges in the field coupled with a mechanism that still needs to be proven out in the clinic" - J.P.Morgan

** 3 of 8 analysts rate the stock buy or higher, 4 "hold" and 1 "sell" or "strong sell"; their median PT is $5 - LSEG data

** As of last close, NMRA down 85.6% YTD