Neumora scraps depression drug development after repeated trial failures

Neumora Therapeutics is discontinuing the development of its experimental depression drug after it failed to meet main goals of two late-stage trials, dealing a decisive blow to its plans for a new treatment option for major depressive disorder.

The company said on Monday that in one trial, its lead drug, navacaprant, was less effective than a placebo in reducing depression symptoms after six weeks of treatment, while in another its efficacy over the same period was comparable to placebo. Its shares slumped more than 45% to their lowest in over 11 months.

This marks the third straight failure for the drug that modulates specialized proteins called kappa opioid receptors, which help control mood and behavior.

Commonly used treatments work by increasing serotonin levels, a chemical that regulates mood and sleep.

Major depressive disorder is a leading cause of disability, morbidity and mortality, with about 21 million adults in the U.S. having experienced at least one episode involving persistent feelings of sadness, loss of interest in regular activities etc., according to the National Institutes of Health.

Neumora also said it would cut about 35% of its workforce to reduce costs, with expected annual savings of around $10 million. The company expects one-time restructuring costs of around $2 million.

The company had 96 full-time employees as of December 31, 2025, according to a regulatory filing.

Neumora now plans to focus on other pipeline drugs, including treatments for agitation in Alzheimer's disease, schizophrenia and obesity, with clinical updates expected over the next 12 months.

The company said it has enough cash to keep operating into the third quarter of 2027.

(Reporting by Kamal Choudhury in Bengaluru; Editing by Shilpi Majumdar)

Copyright Reuters or USA Today Network via Reuters Connect

This story was originally published June 15, 2026 at 9:39 AM.