Overview

A class action lawsuit has been filed against Neumora Therapeutics, Inc. (“Neumora” or the “Company”) and certain of the Company’s former senior executive officers alleging violations of the federal securities laws.  The Company’s common stock trades on the Nasdaq Global Select Market under the ticker symbol “NMRA.”

The Neumora class action lawsuit asserts strict liability claims under the Securities Act of 1933 relating to Neumora’s initial public offering (the “IPO”), commenced on or about September 15, 2023, of 14,710,000 shares of common stock at a price of $17.00 per share.  This federal securities class action is brought on behalf of a class of all persons or entities who purchased or otherwise acquired Neumora common stock pursuant and/or traceable to the Offering Documents issued in connection with the IPO, and who were damaged thereby (the “Class”).

Neumora, a clinical-stage biopharmaceutical company founded in 2019, focuses on developing treatments for neuropsychiatric and neurodegenerative disorders.  Its flagship drug, Navacaprant, is a kappa opioid receptor (KOR) antagonist aimed at treating major depressive disorder (“MDD”).  Neumora acquired Navacaprant through its $37.4 million purchase of BlackThorn Therapeutics, with additional payments contingent on regulatory milestones.  Prior to this acquisition, BlackThorn had already begun a Phase Two clinical trial to test Navacaprant as a monotherapy for mild to moderate MDD.  Neumora later amended the trial criteria to include patients with moderate to severe MDD, as this was the intended target group for its Phase Three studies.  The Company claimed its End-of-Phase Two meeting with the U.S. Food and Drug Administration confirmed Navacaprant’s effectiveness, leading to the launch of three Phase Three studies – KOASTAL-1, KOASTAL-2, and KOASTAL-3.

In September 2023, Neumora raised over $250 million through an IPO to fund Navacaprant’s Phase Three trials.  However, the Company failed to disclose known risks associated with the trials.  Specifically, Neumora did not inform investors that the Phase Two study had been altered to produce statistically significant results or that it lacked sufficient data to accurately predict the success of the KOASTAL-1 study.  These undisclosed issues cast doubt on the drug’s efficacy and reliability.  On January 2, 2025, Neumora announced that KOASTAL-1 had failed to demonstrate a statistically significant improvement in depressive symptoms.  Analysts reacted negatively, calling the results a worst-case scenario, particularly since the drug failed to show improvements over a placebo.

At the J.P. Morgan Healthcare Conference on January 14, 2025, Neumora executives attempted to explain the disappointing results, stating they had not anticipated the significant differences in response between male and female patients.  They acknowledged that female patients showed some improvement, but male patients did not.  Chief Executive Officer Gosebruch admitted that the Phase Two trial’s small patient population may have prevented them from detecting these disparities earlier.  This acknowledgment contradicted Neumora’s previous assurances that its Phase Three trials were built on a solid foundation of data.  Analysts expressed skepticism about the Company’s ability to proceed with Navacaprant based on these findings.

Following these disclosures, Neumora’s stock price plummeted from its IPO price of $17 per share to $1.91 per share by February 5, 2025, marking an 88.7% decline.  Investors suffered significant financial losses due to Neumora’s misleading statements and omissions regarding Navacaprant’s clinical development.  The lawsuit alleges that Neumora knowingly concealed critical deficiencies in its clinical trials, deceiving investors about the drug’s prospects and the Company’s financial stability.

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If you purchased or otherwise acquired Neumora common stock pursuant and/or traceable to the Offering Documents issued in connection with the IPO and you wish to serve as lead plaintiff in this lawsuit, we encourage you to submit your information to DiCello Levitt LLP via the form on this page. 

You can also contact DiCello Levitt partner Brian O’Mara by calling (888) 287-9005 or at [email protected]. 

The deadline to apply to the Court to serve as lead plaintiff in the Neumora class action lawsuit is April 7, 2025.