Neumora Therapeutics, Inc.

Clear Street maintained a Buy rating and a $45 price target for LB Pharmaceuticals, stating that Neumora Therapeutics' Phase 3 KOASTAL trial setback does not materially impact the outlook for LB-102. The firm highlighted that LB-102 is supported by established dopamine D2/D3 and serotonin 5-HT7 receptor activity, along with prior clinical evidence from related therapies. LB-102 has shown strong Phase 2 results in schizophrenia, and the company's broader opportunities across schizophrenia, bipolar disorder, and major depressive disorder remain unchanged. In its fiscal first quarter 2026 earnings, LB Pharmaceuticals reported a net loss of $19.1 million, with research and development expenses rising to $14.6 million and general and administrative expenses to $7.5 million. The company ended the quarter with approximately $365.6 million in cash, cash equivalents, and marketable securities, expected to fund operations into the second quarter of 2029.

The biotech sector saw FDA approvals, study halts, layoffs, and deals this week. Spero Therapeutics and GSK won FDA approval for Utebzi, the first oral carbapenem for complicated urinary tract infections, while AbbVie's Allergan Aesthetics unit received expanded approval for SKINVIVE by JUVÉDERM to treat neck lines. Neumora Therapeutics halted its Phase 3 KOASTAL studies of Navacaprant in major depressive disorder after the drug failed to beat placebo and announced plans to lay off about 35% of its workforce. Biogen agreed to acquire RayThera in a deal valued at up to $1 billion to expand its immunology portfolio, with closing expected in the third quarter of 2026.