Neumora trial failure a ‘big blow’ to bull case, says Stifel

After Neumora Therapeutics (NMRA) announced the Phase 3 KOASTAL-1 Study of navacaprant for the treatment of major depressive disorder did not demonstrate a statistically significant improvement on the primary endpoint, Stifel called the news “a significant blow” to the bull case and argued that investors are likely to “remain very skeptical” ahead of navacaprant’s two Phase 3 readouts due in the first half of 2025. With that said, the analyst adds that “it is well-known that active antidepressants can flat out of fail due to bad luck” and notes the firm is still awaiting data from Johnson & Johnson’s (JNJ) aticaprant as positive data there could provide support for the broader KORA class. With the stock down substantially in the pre-market, Neumora’s setup is “upside-biased,” but after “what looks like a clear failure, it’s hard for us to have conviction,” adds the analyst, whose model is under review. Stifel has a Buy rating on Neumora, whose shares are down $8.69, or 82%, to $1.91 in pre-market trading.