By Kamal Choudhury
June 15 (Reuters) – Neumora Therapeutics will abandon the development of its experimental depression drug following the latest trial failures and said it would cut 35% of its workforce, sending the company’s shares tumbling 50% to an 11-month low on Monday.
In one late-stage trial, Neumora’s lead drug, navacaprant, was less effective than a placebo in reducing depression symptoms after six weeks of treatment, while in another its efficacy over the same period was comparable to placebo.
This marks the third straight failure for the drug that modulates specialized proteins called kappa opioid receptors, which help control mood and behavior.
Last year, Johnson & Johnson halted studies of its depression drug aticaprant, which belongs to the same class as navacaprant, citing lack of sufficient efficacy.
Analysts at William Blair called the selloff in Neumora shares “an overreaction”, suggesting the sharp move may also be partly linked to financing overhang, noting that investors had low expectations after prior failures.
Major depressive disorder is a leading cause of disability, morbidity and mortality, with about 21 million adults in the U.S. having experienced at least one episode involving persistent feelings of sadness, loss of interest in regular activities etc, according to the National Institutes of Health.
Neumora said the workforce reduction is expected to generate around $10 million in annual savings. It expects one-time restructuring costs of around $2 million.
The company had 96 full-time employees as of December 31, 2025, according to a regulatory filing.
Neumora now plans to focus on other pipeline drugs, including treatments for agitation in Alzheimer’s disease, schizophrenia and obesity, with clinical updates expected over the next 12 months.
RBC analyst Brian Abrahams said any excessive stock weakness could provide “a particularly interesting entry point for a revamped go-forward story,” with the earlier-stage pipeline now starting to mature.
(Reporting by Kamal Choudhury in Bengaluru; Editing by Shilpi Majumdar and Shailesh Kuber)
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