Shares of Neumora Therapeutics sank another 10.1% to $1.45 in pre-market trading Tuesday, extending a brutal selloff that has erased roughly 95% of the stock's value from its early-2025 peak. The collapse traces to a single, devastating fact: the company's lead depression drug failed all three of its final-stage clinical trials, leaving a once-promising biotech scrambling for relevance.
Three Swings, Three Misses, and No Drug to Show for It
On June 15, Neumora disclosed that its two remaining late-stage depression trials both failed to show a statistically significant benefit over a sugar pill.
In one study, the drug's advantage was a negligible 0.3 points on a standard depression scale; in the other, patients on placebo actually did better.
This completed a clean sweep of trial failures after the first study flopped in early 2025. The drug simply doesn't work for broad depression, and Neumora killed the program entirely. For shareholders, this wipes out the company's only late-stage asset — the one closest to generating revenue.
A Leaner Company With a Very Short Clock
To save roughly $10 million a year, Neumora is cutting about 35% of its workforce , affecting an estimated 34 employees out of a staff of 96.
One-time restructuring costs of $2 million will hit this quarter, but the cuts extend Neumora's cash runway only into the third quarter of 2027. That gives the company barely a year to produce encouraging data from earlier-stage programs in Alzheimer's-related agitation, schizophrenia, and obesity — or face a cash crunch that could force a heavily dilutive stock offering.
Lawyers Are Circling, Adding Legal Risk to Scientific Risk
Investigators are probing whether Neumora made misleading statements about the drug's chances, including characterizing the first trial failure as an "anomaly" and claiming 90% statistical power for the overall program. Securities litigation adds an unpredictable cost overhang to a company already burning cash with no product revenue.
The Remaining Pipeline Is Real but Unproven
Neumora still has three early-stage drugs targeting Alzheimer's agitation, schizophrenia, and obesity, but none is near commercial readiness, and the loss of navacaprant removes the only asset that had reached final-stage testing.
The June 15 crash alone erased roughly $312 million in market value. At $1.45, investors are essentially betting that a company once backed by $500 million in startup funding can reinvent itself — again — before the money runs out.