Neuphoria stock plunges after failed anxiety disorder drug trial

Investing.com -- Neuphoria Therapeutics Inc. (NASDAQ:NEUP) stock plummeted 67.1% in after-hours trading Monday after the clinical-stage biotech company announced its Phase 3 trial for an anxiety disorder treatment failed to meet its primary endpoint.

The company reported that its AFFIRM-1 Phase 3 trial of BNC210 for the acute treatment of social anxiety disorder (SAD) did not achieve the primary goal of demonstrating change from baseline in Subjective Units of Distress Scale scores. Secondary endpoints also failed to show statistically significant differences, though the drug maintained a favorable safety profile.

Following these disappointing results, Neuphoria announced it will discontinue further development of its SAD program. The company plans to immediately take steps to conserve cash by halting further investment in its programs while conducting a strategic review to maximize shareholder value.

"We are grateful to the AFFIRM-1 trial participants and their families, as well as the investigators and our staff, who contributed to our SAD program over the years," said Spyros Papapetropoulos, M.D., Ph.D., President and CEO of Neuphoria.

The company indicated it will evaluate next steps for BNC210 in post-traumatic stress disorder (PTSD), citing previous positive data with chronic daily dosing. Neuphoria expects to provide an update on its strategic review by year-end.

Neuphoria maintains an ongoing partnership with Merck & Co., Inc., with one candidate currently in a Merck-led Phase 2 trial for Alzheimer’s disease. Through this partnership, Neuphoria remains eligible for up to $450 million in additional milestone payments plus royalties.

As of June 30, 2025, the company reported cash and cash equivalents of $14.2 million, which it expects will fund operations through the second quarter of 2027.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.