Nido Biosciences closed operations after its lead neurological candidate failed to produce meaningful benefit in a midstage (phase 2) study. The company — founded to develop therapies for a rare neurological disease — cited the negative readout as the primary reason for winding down. Midstage failures often curtail small biotechs that lack diversified pipelines or deep cash reserves. Nido’s closure will affect collaborators, patients in ongoing studies and local biotech ecosystems where the company operated. The case underscores the funding and development risks inherent to small companies pursuing single‑asset neurological programs.