Nido Biosciences announced closure following a disappointing midstage study readout for its lead neurological candidate, ending five years of operations. The company’s phase‑2 failure underscores the difficulty of translating preclinical neurobiology into clinical benefit and tightens investor scrutiny of midstage neuro programs. The shutdown will ripple through collaborators and talent markets, increasing availability of experienced neuro R&D teams. It also reinforces investor caution around midstage neuroscience assets and may shift dealmaking toward earlier validation or diversified modalities.