Why Shares of Neumora Therapeutics Slumped This Week

Shares of Neumora Therapeutics (NASDAQ: NMRA) were down more than 32% for the week as of Thursday's market close, according to data provided by S&P Global Market Intelligence. The clinical-stage biotech just went public last Friday via an initial public offering (IPO). It closed last week at $16.25 a share and dropped to as low as $9.90 a share on Wednesday.

The company focuses on developing neuroscience therapies. The company priced its IPO shares at $17 a share, but it opened last Friday at $16.50 and only rose to as high as $17.74. It's a little early to throw the towel in on the stock as it has a promising pipeline with seven programs to treat neuropsychiatric disorders, led by Navacaprant, a oral kappa opioid receptor antagonist that is in phase 3 trials as a potential monotherapy to treat major depressive disorder (MDD).

The company's shares bounced back a bit this week, but most of that rise was due to insider buying. , which has a capital and research partnership with Neumora, bought 35,368,653 shares of stock on Tuesday. Also on Tuesday, company director Kristina Burow, the managing director of ARCH Venture Partners, bought 3,624,143 shares of Neumora stock. At his point, with no approved therapies and just a week of trading, it's hard to tell exactly what the company's shares are worth. A lot of healthcare companies, following their IPOs, watch their shares fall until they actually have concrete news to report regarding a therapy.

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Source Fool.com