(Bloomberg) -- Neumora Therapeutics Inc.’s shares plummeted the most on record after the company’s experimental drug for the treatment of major depressive disorder failed to show a benefit in a final-stage study.
Patients who received Neumora’s navacaprant didn’t show a statistically significant improvement in a measurement of depression symptoms, the company said Thursday. The shares fell as much as 83% at the New York market open, the most since they began trading in September 2023.
Some analysts had hailed navacaprant as a promising new way to treat major depressive disorder, which affects some 21 million people annually in the US. Guggenheim analyst Yatin Suneja had said Neumora shares could double or triple if studies were successful.
Neumora is running two more final-stage trials of the drug, and is developing a number of other drugs for brain disorders.
The company’s cash balance of over $340 million as of the end of the third quarter “provides runway into mid-2026,” Henry Gosebruch, Neumora’s chief executive officer, said in the statement. Its market capitalization was about $1.7 billion as of the last close on Tuesday.
Neumora will give updates on navacaprant and the rest of its pipeline at the JPMorgan Healthcare Conference, he said. The conference begins Jan. 13 in San Francisco.
(Updates shares in lede, second paragraph.)
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