On Monday, RBC Capital maintained its Outperform rating and $29.00 price target on Neumora Therapeutics (NASDAQ:NMRA), expressing a positive outlook for the company's ongoing phase III clinical trials. The firm's enthusiasm is based on the potential of Neumora's navacaprant treatment for major depressive disorder (MDD), particularly in light of recent developments in similar medications.
The optimism follows the publication of phase II data from a competing drug, aticaprant, developed by Johnson & Johnson (NYSE:JNJ). RBC Capital's analysis suggests that the data not only demonstrates the viability of the kappa opioid receptor (KOR) antagonist mechanism in treating depression but also indicates that Neumora's navacaprant could potentially yield even more promising results.
Neumora's management has been engaged in discussions regarding the implications of the recent data on their own phase III trials. The design and conduct of these trials are believed to be robust, enhancing the likelihood of navacaprant's success in treating MDD.
RBC Capital's stance is that while variability and unpredictability are inherent in depression studies, the profile of navacaprant is strong enough to overcome these challenges. The firm anticipates that the phase III readouts, expected in the fourth quarter of 2024, will likely showcase navacaprant's effectiveness.
The statement from RBC Capital underscores a belief in navacaprant's underappreciated potential within the market. This sentiment is rooted in the drug's distinct characteristics and the solid foundation laid out by its phase III study design.
In other recent news, Neumora Therapeutics has announced two significant developments. The company has initiated a Phase 2 study for navacaprant, an investigational oral medication designed for the treatment of bipolar depression. The study aims to evaluate navacaprant's potential in treating depression associated with bipolar II disorder with the anticipation of reporting topline data in the second half of 2025.
On a different note, the U.S. Food and Drug Administration (FDA) has placed a clinical hold on the Phase 1 trial of NMRA-266, another investigational treatment from Neumora, due to safety concerns. The hold was prompted by new pre-clinical data indicating convulsions in rabbits, although no such convulsions have been observed in any of the approximately 30 participants dosed so far.
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