Atai Life Sciences' subsidiary Recognify Life Sciences experienced a setback when its schizophrenia drug candidate, inidascamine, failed to meet the primary cognitive improvement endpoint in a mid-stage phase 2 trial involving 242 patients. Despite a modest signal of cognitive benefits and a favorable safety profile, Atai has chosen to pivot its resources away from this candidate to focus exclusively on its psychedelics pipeline. This reflects ongoing challenges in developing effective treatments for cognitive impairment associated with schizophrenia, a space with few approved therapies and notable competition.