Neumora Therapeutics (NMRA) shares crashed 80% to an all-time low Thursday when the biopharmaceutical firm announced that a late-stage study of its experimental treatment for depression did not meet its goals.

The company reported that in the first of three Phase 3 trials, the drug navacaprant "did not demonstrate a statistically significant improvement on the primary endpoint of change from baseline in the Montgomery-Åsberg Depression Rating Scale (MADRS) total score at Week 6 or the key secondary endpoint of a change from baseline in the Snaith-Hamilton Pleasure Scale (SHAPS) scale."

Rob Lenz, the head of research and development at Neumora, said the company was "disappointed by the results," which were not consistent with previous data. Lenz added that there was "a lot to investigate from this study, in particular the contrast in drug and placebo responses in depressed mood and anhedonia in female participants compared to male participants." 

CEO Henry Gosebruch noted that despite the setback, Neumora's "strong financial foundation and cash balance of $342 million as of the end of the third quarter provides runway into mid-2026." Gosebruch explained that the company will provide additional updates on the navacaprant development program and its pipeline at the J.P. Morgan Healthcare Conference, which will be held Jan. 13-16 in San Francisco.

Shares of Neumora Therapeutics sank 80% to $2.05 in recent trading.