The clinical-stage biopharmaceutical firm is now recalibrating its operations to preserve capital, confirming plans to lay off 35% of its workforce. This restructuring aims to extend the company's cash runway through the third quarter of 2027, allowing management to pivot resources toward the remaining portfolio, including treatments for schizophrenia, Alzheimer’s-related agitation, and cardiometabolic disease.

Despite the market reaction, analysts at William Blair and Mizuho characterize the selloff as an overreaction. Mizuho maintains an outperform rating with a $6 price target, arguing that the current valuation fails to account for the potential of the firm's broader drug pipeline. By abandoning navacaprant—a drug that had previously struggled in earlier evaluations—leadership hopes to clear a path toward more viable prospects.