Neumora Stock Dives After Study Failure

Neumora Therapeutics' stock price plummeted by more than 80% on the Nasdaq on Thursday, January 3, 2025, following the disappointing results of the first of three phase 3 trials for its novel antidepressant, navacaprant. The company's lead drug candidate failed to meet both primary and secondary endpoints in the KOASTAL-1 study, causing investors to react negatively to the news.

The KOASTAL-1 trial, which enrolled 383 patients, aimed to evaluate the efficacy and safety of navacaprant in the treatment of major depressive disorder (MDD). However, the drug did not demonstrate a statistically significant improvement in depression symptoms, as measured by the Montgomery-Åsberg Depression Rating Scale (MADRS), compared to placebo after six weeks of treatment. Additionally, navacaprant missed a key secondary endpoint, the change from baseline in the Snaith-Hamilton Pleasure Scale (SHAPS), which is used to measure the extent of anhedonia, a common symptom of MDD.

Despite the top-line misses, Neumora Therapeutics noted an "efficacy signal" in female patients enrolled in the KOASTAL-1 study. The drug showed a 14-point improvement in MADRS scores and a 7.2-point improvement in SHAPS scores for female patients, compared to 11.4 and 4.9 points for placebo, respectively. While these differences did not reach statistical significance, they suggest that there may be a potential benefit for female patients, warranting further exploration.



The disappointing results of the KOASTAL-1 trial have raised questions about the efficacy of navacaprant as a treatment for MDD and may cast doubt on the company's ability to successfully complete its remaining phase 3 trials, KOASTAL-2 and KOASTAL-3. Investors may be concerned about the potential impact of the failed trial on Neumora's financial health, as the company's share price is a crucial factor in its ability to raise capital through additional funding rounds or partnerships.

However, Neumora Therapeutics remains in a strong cash position, with $342 million in the bank as of the end of the third quarter. This financial stability may provide the company with the resources needed to continue its research and development efforts and potentially turn around investor confidence if the remaining trials yield more positive results.



In conclusion, the failure of Neumora Therapeutics' first phase 3 trial for navacaprant has had a significant impact on the company's stock price and investor confidence. The disappointing results have raised questions about the drug's efficacy and the company's ability to successfully complete its remaining trials. However, Neumora's strong financial position and the potential for encouraging trends in the data may provide a glimmer of hope for the company's future prospects. As the company continues to explore the potential benefits of navacaprant in female patients and awaits the results of its remaining trials, investors will be closely watching to see if the drug can still become a valuable addition to the treatment landscape for MDD.