Johnson & Johnson announced Thursday it will discontinue development of aticaprant for major depressive disorder, dealing a significant blow to what was once considered a promising candidate in the company’s pipeline. The pharmaceutical giant had previously projected the experimental drug could generate annual sales between $1 billion and $5 billion at its peak.
The decision came after late-stage clinical trials failed to demonstrate sufficient effectiveness in treating patients with difficult-to-treat major depressive disorder and severe anhedonia – a condition characterized by the inability to feel pleasure or maintain interest in activities. While safety and tolerability profiles remained favorable, the drug’s performance in the target population fell short of expectations.
Despite this setback, J&J maintains it will explore other potential therapeutic applications for aticaprant in areas with significant unmet medical needs. The company also reaffirmed its commitment to neuroscience research, highlighting its recent $15 billion acquisition of Intra-Cellular Therapies, which produces the mental health medication Caplyta.
The development suspension appears to have minimal impact on J&J’s broader financial outlook. The company stands by its projected 5-7% compound annual growth rate for its pharmaceutical division, which reported $57 billion in revenue for 2024, representing a 4% increase from the previous year.
Market reaction to the news was relatively muted, with J&J’s stock actually rising more than 1% following the announcement. However, the impact was more severe for Neumora Therapeutics, a biotech startup developing a similar drug, whose shares declined approximately 5%.
The news follows Neumora’s own struggles earlier this year when its drug navacaprant failed to outperform placebo in treating
moderate-to-severe major depressive disorder. Both aticaprant and navacaprant target kappa opioid receptors, proteins involved in mood regulation, stress response, and pain perception.
Industry analysts have responded pessimistically to these
developments. RBC Capital Markets analyst Brian Abrahams suggested the terminated trials could eliminate remaining optimism about the potential of these drugs in depression treatment. Stifel analyst Paul Matteis downgraded Neumora’s stock to “Hold,” describing J&J’s decision as a “big blow” to the entire class of kappa opioid receptor drugs.
The impact on Neumora has been particularly severe. The company, which launched in late 2021 with $500 million in backing from prominent venture capital firms including Arch Venture Partners and Polaris Partners, has seen its stock value plummet by over 90% since its initial public offering. The company’s shares now trade at
approximately $1.45.
AbbVie also maintains a presence in this therapeutic space through its acquisition of Cerevel Therapeutics, with a kappa opioid antagonist currently in Phase 1 testing. However, the recent failures in this drug class have raised significant doubts about the viability of this approach to treating depression.
For J&J, while the aticaprant setback may complicate its ambition to become the leading neuroscience company by 2030, the pharmaceutical giant’s diverse pipeline includes nearly 20 other novel drug candidates with potential blockbuster status. This broad portfolio helps insulate the company from individual program failures, explaining the minimal impact on its stock price despite the high expectations previously attached to aticaprant.