(Updates with the latest stock movement in the headline and the first paragraph.)

Alto Neuroscience (ANRO) shares fell 3.1% on Thursday, a day after the company said topline data from its Phase 2 proof-of-concept clinical trial evaluating ALTO-101 was not statistically significant on primary electroencephalography or cognitive endpoints versus placebo.

However, the study showed directional improvements across some electroencephalography, or EEG, measures, including a near-significant impact on theta-ITC, a measure correlated with cognitive performance across datasets. Theta-ITC also demonstrated improvements from day 5 to day 10 in the trial, suggesting a longer treatment may yield greater effects, according to the company.

While ALTO-101 had a favorable tolerability profile in terms of nausea and vomiting, there were high rates of application site skin reactions across both active and placebo arms, the company said.

Alto said it does not plan to independently advance ALTO-101 in cognitive impairment associated with schizophrenia and will dedicate resources toward its lead program, ALTO-207, while exploring partnership opportunities for ALTO-101.

Price: 22.68, Change: -0.73, Percent Change: -3.14