Neumora Therapeutics (NASDAQ:NMRA) said on Monday that it will halt development of its experimental depression treatment navacaprant after two Phase III clinical studies failed to meet their primary efficacy goals.
The drug candidate had been under evaluation as a potential treatment for patients suffering from major depressive disorder.
Late-Stage Trial Setbacks Prompt Strategic Review
The decision follows disappointing results from the company’s late-stage clinical programme, which was designed to assess the effectiveness of navacaprant in treating depression.
After reviewing the outcomes of the studies, management elected to discontinue further development of the therapy and redirect resources toward other priorities within its pipeline.
Company Implements Cost-Saving Measures
Alongside the programme termination, Neumora announced plans to reduce its workforce by approximately 35% as part of a broader restructuring initiative aimed at lowering operating expenses.
The company expects the measures to deliver annual cost savings of around $10 million.
Restructuring Expected to Generate One-Time Charges
Neumora said the workforce reduction will result in one-off restructuring expenses of approximately $2 million.
Management believes the cost-cutting programme will strengthen the company’s financial position following the setback in its depression drug development efforts.