CTNM Slumps 10% as JNJ Mid-Stage Trial of JNJ-5120 Falls Short
Shares of Contineum Therapeutics (CTNM) plummeted by 10% in after-hours trading on Monday following disappointing news from its partner, Johnson & Johnson (JNJ), regarding the mid-stage trial of JNJ-5120, also known as PIPE-307.
The study aimed to evaluate the efficacy of JNJ-5120/PIPE-307 as a standalone treatment for major depressive disorder. However, the primary measure was not met, with the Montgomery-Åsberg Depression Rating Scale score at Day 5 failing to show significant improvement over placebo.
This marks the second mid-stage setback for the same molecule in less than a year, casting doubt on its future development under JNJ's hands. The first miss occurred in November 2025 when Contineum's own mid-stage VISTA trial of PIPE-307 in relapsing-remitting multiple sclerosis missed its primary and secondary goals.
Contineum has shifted focus to its unpartnered lung-disease program, particularly the development of PIPE-791 for idiopathic pulmonary fibrosis and chronic pain. The company's cash reserves stand at $236.6 million as of June 30, funding operations through mid-2029, well past the planned IPF readout.