Contineum Therapeutics Stock Drops 10% Amid JNJ Trial Disappointment

Contineum Therapeutics (CTNM) shares fell 10% after-hours after Johnson & Johnson's (JNJ) mid-stage trial of JNJ-5120/PIPE-307 failed to meet its main goal in major depressive disorder. This is the second mid-stage setback for the molecule in less than a year. The license deal between JNJ and CTNM included $50 million upfront, a $25 million equity stake, and more than $1 billion in potential milestones. JNJ is still reviewing exploratory measures and has not said whether it will continue development. The focus now shifts to CTNM's unpartnered lung-disease program and its own drug, PIPE-791, being developed for idiopathic pulmonary fibrosis and chronic pain.