NEW YORK, Feb. 07, 2025 (GLOBE NEWSWIRE) — Gainey McKenna & Egleston announces that a securities class action lawsuit has been filed in the United States District Court for the Southern District of New York on behalf of all persons or entities who purchased or otherwise acquired Neumora Therapeutics, Inc. (“Neumora” or the “Company”) (NASDAQ: NMRA) securities in Neumora’s initial public offering (the “IPO”) held on September 15, 2023 or thereafter and tracable to it, inclusive (the “Class Period”). The lawsuit seeks to recover damages for the Company’s investors under the federal securities laws.
The Complaint alleges that Defendants made materially false and/or misleading statements. Specifically, the Complaint alleges that the Offering Documents failed to disclose and/or misrepresented the following significant, then-existing material events, trends, and uncertainties regarding the prospects of Navacaprant as a monotherapy, including: (1) in order for Neumora to justify conducting its Phase Three Program, Neumora was forced to amend BlackThorn’s original Phase Two Trial inclusion criteria to include a patient population with moderate to severe MDD to show that Navacaprant offered a statistically significant improvement in treating MDD; (2) and to that same end, the Company also added a prespecified analysis to the Phase Two statistical analysis plan, focusing on patients suffering from moderate to severe MDD; and (3) the Phase Two Trials lacked adequate data, particularly in regards to the patient population size and the ratio of male to female patients within the patient population, to be able to accurately predict the results of the KOASTAL-1 study.
According to the Complaint, before the markets opened on January 2, 2025, the undisclosed adverse facts became known when Neumora issued a press release announcing the results from the KOASTAL-1 study of Navacaprant for the treatment of moderate to severe MDD. The Complaint alleges that the press release revealed that the KOASTAL-1 study failed to “demonstrate a statistically significant improvement on the primary endpoint of change from baseline in the Montgomery-Åsberg Depression Rating Scale (‘MADRS’) total score at Week 6 or the key secondary endpoint of a change from baseline in the Snaith-Hamilton Pleasure Scale (‘SHAPS’) scale.” The Complaint continues to allege that in that same press release, Executive Vice President Rob Lenz (“EVP Lenz”) stated, “We are disappointed by the results from KOASTAL-1 as they were not consistent with the body of evidence supporting this mechanism.” The Complaint further alleges that EVP Lenz also noted that there “is a lot to investigate from this study” due to the “contrast in drug and placebo responses in depressed mood and anhedonia in female compared to male participants.”
The Complaint further alleges that analysts were stunned by the disappointing results of the KOASTAL-1 study, for example, analysts at RBC Capital explained that the “readout represents a worst-case scenario for the program, as there were no MADRS improvements at all between the treated and placebo arms[.]” The Complaint also alleges that the RBC Capital analysts also noted: The company did indicate that their KOR antagonist demonstrated improvements among females (a prespecified analysis), and there have been some scattered reports in the literature around gender differences in response to kappa opioid related drugs, but given that male participants actually did worse on navacaprant, we see this as more of a curiosity rather than anything that would necessarily inspire confidence this could enable a future path forward for the drug.
According to the Complaint, since the IPO, the value of Neumora common stock has declined substantially from the IPO price of $17 per share to a closing price of $1.91 per share on February 5, 2025, an 88.7% decline from the IPO price. The Complaint alleges that as a result of Defendants’ wrongful acts and omissions, and the precipitous decline in market value of the Company’s common stock when the truth was disclosed, Plaintiff and other Class members have suffered significant losses and damages.
Investors who purchased or otherwise acquired shares of Neumora should contact the Firm prior to the April 7, 2025 lead plaintiff motion deadline. A lead plaintiff is a representative party acting on behalf of other class members in directing the litigation. If you wish to discuss your rights or interests regarding this class action, please contact Thomas J. McKenna, Esq. or Gregory M. Egleston, Esq. of Gainey McKenna & Egleston at (212) 983-1300, or via e-mail at tjmckenna@gme-law.com or gegleston@gme-law.com.
Please visit our website at http://www.gme-law.com for more information about the firm.
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