Contineum Shares Plummet as Mid-Stage Trial of JNJ-Licensed Asset Fails
Contineum Therapeutics' (CTNM) shares fell about 10% in after-hours trading on Monday following disappointing news from a mid-stage trial of JNJ-5120, also known as PIPE-307. This molecule was licensed to Johnson & Johnson (JNJ) worldwide in 2023 for $50 million upfront and more than $1 billion in potential milestones.
The MOONLIGHT-1 study failed to meet its primary goal in treating major depressive disorder, marking the second mid-stage setback for the same molecule in less than a year. The trial tested JNJ-5120 as a standalone treatment in adults with major depression, and while it was well-tolerated, it did not show significant improvement over placebo.
The failure of this trial raises concerns about Contineum's partnership with Johnson & Johnson and the future of PIPE-307. However, investors are now focusing on other assets, particularly PIPE-791, which is being developed for idiopathic pulmonary fibrosis and chronic pain. A mid-stage trial of this asset began dosing in the first quarter of 2026 and is expected to complete by mid-2028.