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Contineum Therapeutics Slumps After Depression Drug Trial Failure

Shares of Contineum Therapeutics slid 8.2% in after-hours trading Monday, dropping to $13.59, as investors reacted to news that the company's Phase 2 trial for a depression treatment failed to hit its primary efficacy goal. The clinical disappointment casts a shadow over the firm’s pipeline development.

The Moonlight-1 trial, which evaluated the drug candidate JNJ-5120/PIPE-307, did not achieve its intended primary endpoint. Despite the statistical miss, the company reported that the treatment remained well-tolerated by participants, with no emergence of new safety concerns during the study. Contineum is currently conducting further analyses of the trial data to determine the next steps for the program.

The drug is being developed in partnership with Johnson & Johnson, which holds a global license under a collaborative agreement. Following the announcement, the stock gave up the gains of its flat regular session, where it had closed at $14.82.

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