Minerva Neurosciences (NERV) stock rocketed higher on Tuesday after the clinical-stage biopharmaceutical company announced a securities purchase agreement with certain institutional investors. This will provide the company with $200 million in gross proceeds via a private placement that includes up to $80 million in upfront funding.
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Minerva Neurosciences intends to use net proceeds from this private placement to continue its research and development of roluperidone. This includes its confirmatory Phase 3 trial of roluperidone, upsizing the trial, preparation and resubmission of its New Drug Application, and preparing for a commercial launch in the U.S. Roluperidone is a treatment in development for patients suffering from schizophrenia, which is a chronic mental health condition.
Dr. Remy Luthringer, Chairman and CEO of Minerva Neurosciences, said, “We will now refocus all of our efforts on the successful execution of the confirmatory trial with the objective of demonstrating that roluperidone can effectively treat patients with impairing negative symptoms.”
Minerva Neurosciences Stock Movement Today
Minerva Neurosciences stock was up 163.16% in pre-market trading on Tuesday, following a 6.83% rally yesterday. The stock has increased 19.82% year-to-date and 7.26% over the past 12 months. With today’s news came heavy trading, as some 39.5 million shares changed hands, compared to a three-month daily average of about 465,000 units.
Is Minerva Neurosciences Stock a Buy, Sell, or Hold?
Turning to Wall Street, analyst coverage of Minerva Neurosciences is lacking. Fortunately, TipRanks’ AI analyst Spark has it covered. Spark rates NERV stock an Underperform (34) with no price target. It cites “significant financial instability, marked by negative equity and a lack of revenue” as reasons for this stance.
