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