Stock Markets June 15, 2026 10:29 AM

Neumora Halts Navacaprant After Phase 3 Miss; Shares Collapse

KOASTAL-2 and KOASTAL-3 fail their primary endpoints; company announces workforce reduction and refocus on remaining pipeline

By Hana Yamamoto
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Neumora Therapeutics said two phase 3 studies of navacaprant for major depressive disorder did not achieve their primary or key secondary endpoints, prompting the company to discontinue development of the drug. Shares plunged 46.6% on the announcement. Neumora will cut about 35% of its staff, expects roughly $10 million in annualized cost savings offset by about $2 million in one-time restructuring charges, and says current cash should fund operations into the third quarter of 2027. The company will concentrate on other clinical programs including NMRA-511, NMRA-898 and NMRA-215.

Neumora Halts Navacaprant After Phase 3 Miss; Shares Collapse
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Key Points

  • Neumora discontinued development of navacaprant after KOASTAL-2 and KOASTAL-3 failed to meet primary and key secondary endpoints, triggering a 46.6% drop in the stock.
  • KOASTAL-2 (n=430) and KOASTAL-3 (n=422) reported least-squares mean differences versus placebo of -0.3 and 0.7 respectively on the Montgomery-Åsberg Depression Rating Scale.
  • The company will cut about 35% of its workforce to achieve approximately $10 million in annualized savings, take roughly $2 million in one-time restructuring charges, and expects cash to last into the third quarter of 2027; it will refocus on NMRA-511, NMRA-898 and NMRA-215.

Summary

Neumora Therapeutics reported that its two phase 3 trials of navacaprant - KOASTAL-2 and KOASTAL-3 - failed to meet primary and key secondary endpoints in major depressive disorder (MDD). The company said it will discontinue development of navacaprant. Shares of the company fell 46.6% on the news.


Trial results

In KOASTAL-2, patients receiving navacaprant 80 mg showed a change from baseline to week 6 on the Montgomery-Åsberg Depression Rating Scale (MADRS) that was similar to placebo, with a least-squares mean difference of -0.3. In KOASTAL-3, navacaprant produced a numerically lower change from baseline than placebo, with a least-squares mean difference of 0.7. KOASTAL-2 enrolled 430 adult patients with major depressive disorder, and KOASTAL-3 enrolled 422 adult patients.

The company said navacaprant was demonstrated to be safe and generally well tolerated, and that its safety profile in the phase 3 studies was consistent with prior clinical studies.


Financial and operational response

Following the trial outcomes, Neumora announced a reduction in its workforce of approximately 35%. The company expects this headcount reduction to generate annualized cost savings of about $10 million, partially offset by one-time restructuring costs of approximately $2 million. Neumora stated that its current cash and cash equivalents are expected to provide a runway into the third quarter of 2027.


Pipeline focus and near-term milestones

With navacaprant discontinued, Neumora said it will focus on advancing its remaining clinical portfolio. The programs highlighted by the company include:

  • NMRA-511 for agitation associated with Alzheimer’s disease - the company plans to complete a multiple ascending dose cohort in the fourth quarter of 2026.
  • NMRA-898 for schizophrenia - Neumora expects to report data from the ongoing phase 1 study in the second half of 2026.
  • NMRA-215 for cardiometabolic disease - listed among the company’s remaining clinical priorities.

The company did not disclose additional changes to timelines for these programs beyond the milestones described above.


Market reaction

Neumora shares declined 46.6% on the day of the announcement following the discontinuation of navacaprant development after both phase 3 trials failed to reach statistical significance on primary and key secondary endpoints.


Implications

The company will reallocate resources toward its other clinical-stage assets and implement cost-saving measures to extend its cash runway into the third quarter of 2027. Management emphasized the safety and tolerability profile of navacaprant despite the lack of efficacy in the phase 3 studies.

Risks

  • Clinical development risk: Discontinuation of navacaprant after phase 3 failures reduces near-term drug-development prospects and revenue potential for Neumora - impacts the biotech and healthcare sectors.
  • Operational and execution risk: A roughly 35% workforce reduction could affect the pace of development of remaining programs and operational capacity - impacts biotech operations and staffing-related markets.
  • Financial runway risk: Although the company expects cash into Q3 2027, the loss of a late-stage program and restructuring charges introduce uncertainty around future financing needs for advancing remaining assets - impacts capital markets and biotech financing.

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