Neumora Therapeutics initiated with an Overweight at JPMorgan

JPMorgan initiated coverage of Neumora Therapeutics with an Overweight rating and $21 price target. The company’s lead pipeline small molecule candidate, navacaprant, as a kappa opioid receptor antagonist, is a novel mechanism of action that appears to be differentiated relative to current standard of care antidepressants in major depressive disorder and is well tolerated, the analyst tells investors in a research note. The firm concedes that trials in neuropsychiatry including in depression “carry a healthy amount of risk,” but believes there is the potential for navacaprant to work. It sees an attractive entry point at current share levels.