If you thought the end of 2024 was tough, Neumora Therapeutics just found out what rock bottom really feels like. The biopharma company’s stock got absolutely obliterated on Thursday, dropping a soul-crushing 81.4% to an all-time low of $2.05. The reason? Their experimental depression drug, navacaprant, showed to be as effective as a screen door on a submarine. 

(Source: Giphy) 

In short, Navacaprant was supposed to be the next big thing in treating major depressive disorder (MDD). Instead, it turned out to be about as helpful as someone telling you to "cheer up." In the first of three Phase 3 trials, the drug didn’t hit either of its primary or secondary endpoints. For instance, Patients on navacaprant scored the same on the Montgomery-Åsberg Depression Rating Scale (MADRS) as those on a placebo. Translation: The drug didn’t move the needle on reducing depressive symptoms at all. And the secondary endpoint, which measured improvements in anhedonia (aka the inability to feel joy), was also a bust.

In simpler terms: If you had a sugar pill, you saved yourself the co-pay. 

(Source: Investopedia) 

Naturally, the aftermath had Neumora’s leadership scrambling to do some damage control.CEO Henry Gosebruch pulled out the corporate version of “at least we still have our health,” reminding everyone that the company is sitting on $342 million in cash—enough to keep the lights on through 2026. Weird flex, Henry, but okay— especially since stockholders watching their portfolios evaporate probably aren’t thrilled to hear about the company’s rainy-day fund.

Additionally, Rob Lenz, Neumora’s head of research and development, tried to soften the blow by calling the results “disappointing” but not consistent with earlier data. He also mentioned some faintly interesting gender-specific findings, noting that the drug seemed to work (slightly) better in women than men. Unfortunately, analysts dismissed this as a “curiosity” rather than a meaningful silver lining. 

(Source: Reuters) 

For this reason, analysts wasted no time piling on. RBC’s Brian Abrahams bluntly stated that the trial results likely reflect the drug’s “true effect (or lack thereof).” Translation: Don’t hold your breath for a comeback. Plus, to make matters worse, Johnson & Johnson is already running its own Phase 3 trial for a similar drug, aticaprant, meaning Neumora may have to fight for scraps in a market they’re not even sure they can crack.

Now with that said, Navacaprant has two more Phase 3 studies in the works, but after this disaster, confidence in those results is… let’s say, “low.” Of course, Neumora plans to share more updates at the J.P. Morgan Healthcare Conference later this month—but for now,  investors are left with one burning question: Can Neumora salvage anything from this flaming wreckage of a trial? Or is navacaprant destined to join the long list of “what could’ve been” drugs?

(Source: Giphy) 

Only time will tell, but it’s clear that Neumora’s stock didn’t just crash—it went full Wile E. Coyote off a cliff. While management clings to their $342 million war chest like a security blanket, Wall Street has already moved on, skeptical that this drug—or the company—has much of a future. 

In the meantime, keep an eye on Neumora and place your bets accordingly (I know some of you degenerates are screaming “BTFD” this very second). As always stay safe and stay frosty, friends! 

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Stocks.News holds positions in Johnson & Johnson as mentioned in the article.