Contineum said that Johnson & Johnson’s (JNJ) mid-stage trial of JNJ-5120, also known as PIPE-307, failed to meet its main goal in major depressive disorder.
- The miss is the second mid-stage setback for the same molecule in less than a year.
- J&J licensed PIPE-307 worldwide in 2023 in a deal that included $50 million upfront, a $25 million equity stake, more than $1 billion in potential milestones, and royalties.
- J&J is still reviewing exploratory measures and has not said whether it will continue development.
Shares of Contineum Therapeutics (CTNM) fell about 10% in after-hours trading on Monday after the firm said that Johnson & Johnson’s (JNJ) mid-stage trial of JNJ-5120, also known as PIPE-307 and licensed from Contineum, failed to meet its main goal in major depressive disorder.
The miss is the second mid-stage setback for the same molecule in less than a year and shifts more of Contineum’s story onto its unpartnered lung-disease program. JNJ stock traded flat after-hours at the time of writing.
What The Trial Tested And Missed
MOONLIGHT-1 was a randomized, placebo-controlled proof-of-concept study of JNJ-5120/PIPE-307 as a stand-alone treatment in adults with major depression. The primary measure was change from baseline on the Montgomery-Åsberg Depression Rating Scale, a standard depression score, at Day 5 versus placebo. That bar was not met. The drug was well tolerated, with no new safety issues, Contineum said. J&J is still reviewing exploratory measures and has not said whether it will continue development.
J&J licensed PIPE-307 worldwide in 2023 in a deal that included $50 million upfront, a $25 million equity stake, more than $1 billion in potential milestones, and royalties.
A Second Miss For The Same Asset
In November 2025, Contineum’s own mid-stage VISTA trial of PIPE-307 in relapsing-remitting multiple sclerosis also missed its primary and secondary goals. Shares sold off after that readout, and analysts already treated the depression study as high-risk. Two efficacy misses leave the program’s future in J&J’s hands.
Investors now focus on PIPE-791, a drug Contineum is developing itself for idiopathic pulmonary fibrosis and chronic pain. PROPEL-IPF, a global mid-stage trial of about 324 patients, began dosing in the first quarter of 2026. It measures change in lung function over 26 weeks, has more than 55 sites in eight countries, and is not expected to finish until mid-2028. Contineum has deferred a progressive-MS effort for PIPE-791 and paused another early program, CTX-343.
Contineum’s cash was $236.6 million as of June 30, which the company says funds operations through mid-2029 — past the planned IPF readout.
How Did CTNM, JNJ Retail Traders React?
On Stocktwits, retail sentiment around CTNM stock went from ‘neutral’ to ‘bullish’ over the past 24 hours while message volume improved from ‘low’ to ‘normal’ levels.
Meanwhile, sentiment around JNJ stayed ‘bearish.’
While CTNM stock has gained 30% year-to-date, JNJ gained 29%.
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