Shares of Neumora Therapeutics NMRA tumbled 48.6% on Monday after the company reported disappointing late-stage results for navacaprant, its experimental treatment for adults with major depressive disorder (MDD). The candidate failed to meet the primary and key secondary endpoints in both the phase III KOASTAL-2 and KOASTAL-3 studies in MDD, prompting discontinuation of its development.
Per Neumora, the KOASTAL-2 and KOASTAL-3 studies evaluated navacaprant in patients with MDD, with the primary goal of measuring improvement in depressive symptoms over 6 weeks using the Montgomery-Åsberg Depression Rating Scale (MADRS). In KOASTAL-2, patients receiving navacaprant showed a 12.2-point reduction in MADRS scores compared with a 12-point reduction in the placebo group, indicating that the treatment did not provide a meaningful benefit over placebo.
The results were similarly underwhelming in KOASTAL-3. Patients treated with navacaprant achieved a 10.1-point reduction in MADRS scores, while the placebo group recorded a slightly greater 10.8-point improvement. Neumora also examined a pre-specified subgroup of MDD patients enrolled after study modifications were implemented in early 2025. In that analysis, both the navacaprant and placebo groups delivered identical 12.1-point reductions in MADRS scores, reinforcing the lack of a treatment advantage. Despite the efficacy setback, NMRA reported that navacaprant was safe and generally well tolerated, with no new safety concerns identified during the studies.
Year to date, Neumora shares have plummeted 48.9% compared with the industry’s 1.3% decline.
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NMRA Turns Focus to Other Pipeline Programs
With the discontinuation of navacaprant, Neumora has shifted its attention to other clinical assets that management believes have best-in-class potential. The company’s lead near-term focus includes NMRA-511, a V1a receptor antagonist being developed for agitation associated with Alzheimer’s disease. Neumora expects to complete a multiple ascending dose study evaluating higher doses in healthy elderly volunteers during the fourth quarter of 2026. Data from that study are expected to guide dose selection for a planned phase IIb dose-ranging study of the candidate for the Alzheimer’s indication, scheduled to begin by the end of the year.
Another key program is NMRA-898, an M4 positive allosteric modulator being developed for schizophrenia. Neumora expects to report data from an ongoing phase I study in the second half of 2026. Meanwhile, NMRA-215, an NLRP3 inhibitor, is currently undergoing pre-clinical development for obesity and broader cardiometabolic indications. Clinical studies for NMRA-215 are expected to begin before the end of 2026, creating several potential catalysts over the next 12 months.
Neumora announced plans to reduce its workforce by approximately 35%, a move expected to generate annualized cost savings of about $10 million while incurring roughly $2 million in one-time restructuring charges. This has also likely contributed to the stock price decline. The company expects its current cash resources to provide operational runway into the third quarter of 2027, supporting the advancement of the ongoing pipeline programs.
Neumora Therapeutics, Inc. Price and Consensus
Neumora Therapeutics, Inc. price-consensus-chart | Neumora Therapeutics, Inc. Quote
NMRA’s Zacks Rank & Stocks to Consider
Neumora currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the biotech sector are Liquidia Corporation LQDA, Indivior Pharmaceuticals INDV and Immunocore IMCR, each sporting a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
Over the past 60 days, estimates for Liquidia Corporation’s 2026 EPS have increased from $1.50 to $2.97. Over the same period, EPS estimates for 2027 have also increased from $2.91 to $4.81. LQDA shares have rallied 108.3% year to date.
Liquidia Corporation’searnings beat estimates in three of the trailing four quarters and missed in the remaining one, with the average surprise being 54.40%.
Over the past 60 days, estimates for Indivior Pharmaceuticals’ 2026 earnings per share have increased from $3.33 to $4.05. Over the same period, EPS estimates for 2027 have risen to $4.27 from $3.66. INDV shares have gained 7% year to date.
Indivior Pharmaceuticals’ earnings beat estimates in each of the trailing four quarters, with the average surprise being 65.44%.
The estimate for Immunocore’s 2026 EPS is currently pegged at 6 cents. In the past 60 days, the estimates for its 2027 EPS have increased from 24 cents to 87 cents. IMCR shares have lost 17.6% year to date.
Immunocore’s earnings beat estimates in three of the trailing four quarters, while missing the same on the remaining occasion, with the average surprise being 46.66%.
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Neumora Therapeutics, Inc. (NMRA): Free Stock Analysis Report
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