Neumora shares look oversold after 80% drop, says Mizuho

Mizuho keeps an Outperform rating on Neumora Therapeutics (NMRA) after the company announced negative first Phase 3 KOASTAL-1/K-1 study data for navacaprant in major depressive disorder. With navacaprant missing on both primary and secondary endpoints, a disappointing outcome, the stock’s 80% drop is not surprising, the analyst tells investors in a research note. The firm reminds investors that Neumora has two more shots on goal with navacaprant, with the Phase 3 KOASTAL-2/K-2 and KOASTAL-3/ K-3 studies ongoing, and data readouts from both expected in the first half of 2025. With Neumora now trading at negative enterprise value, but having a cash runway to mid-2026 and other pipeline programs, the shares look oversold, contends Mizuho.