Johnson & Johnson Partner Contineum Slides as Depression Drug Fails

Contineum Therapeutics (CTNM) and Johnson & Johnson (JNJ) reported that their depression drug, JNJ-5120/PIPE-307, failed to meet the primary endpoint in a Phase 2 trial. The drug showed no new safety issues but did not demonstrate the required efficacy in treating major depressive disorder. JNJ is analyzing additional data to determine the next steps for the program.

Goldman Sachs initiated coverage on Contineum Therapeutics (NASDAQ:CTNM) with an Early-Stage Biotech rating. The stock trades at $12.51, down 5.3% in a week. The company is developing oral therapies for inflammatory and fibrotic conditions. Its lead candidate, PIPE-791, is in a Phase 2 trial for idiopathic pulmonary fibrosis. Despite a recent trial failure, Stifel maintains a Buy rating with a $28 price target.

Contineum Therapeutics (CTNM) shares fell in after-hours trading after its depression drug candidate, licensed to Johnson & Johnson (JNJ), missed the primary efficacy endpoint in a Phase 2 trial. This is the second Phase 2 failure for the same molecule in less than a year. The company's focus shifts to its lung-disease program, PIPE-791. JNJ is evaluating the trial data, but no decision on further development has been made. Contineum shares declined 3.5% to $14.30 in after-hours trading, while J

Contineum Therapeutics (CTNM) shares fell 10% after-hours after J&J's (JNJ) mid-stage trial of PIPE-307, licensed from CTNM, failed to meet its primary goal in treating major depressive disorder. This is the second mid-stage setback for the molecule in under a year. JNJ is reviewing exploratory measures and has not decided on further development. CTNM has $236.6 million in cash, expected to last through mid-2029.

Contineum Therapeutics' shares fell 8.2% after hours, trading at $13.59, after its Phase 2 trial for a depression treatment missed the primary efficacy endpoint. The drug, licensed to Johnson & Johnson, was well-tolerated but did not meet its main goal. The company is still analyzing the data.

Contineum Therapeutics (CTNM) shares dropped 8% after reporting its phase 2 trial for JNJ-5120/PIPE-307 in major depressive disorder failed to meet its primary endpoint. The drug was well-tolerated, and Johnson & Johnson is reviewing the data to determine next steps. Contineum Therapeutics is a clinical-stage biopharmaceutical company.