Published On: Fri, May 27th, 2016

Minerva Neurosciences Inc (NASDAQ:NERV) Gains Over 200% in Share Value Following Positive Results of Clinical Trials

Minerva Neurosciences Inc (NASDAQ:NERV) has more than doubled its share value, following announcement of positive results from a phase2a clinical trial, targeted at the treatment of Major Depressive Disorder. It should be noted here that NERV had a net loss of $8 million, for its 1Q2016, as compared to a net loss of $6.1 million a year ago.

The CEO of Minerva, Dr. Remy Luthringer, stated that the results of the trial were meaningful and provided support for further R&D of MIN-117. He further revealed that not only does the drug have a differentiated mechanism of action, but is also well tolerated in patients. The CEO also hinted that the pharmacology of the drug did not only help treat mood disorders, but had the potential to treat other CNS indications.

Positive results were also obtained from MIN-101, a prospective phase IIb clinical study, targeting patients with symptoms of schizophrenia. The company stated that this could be the first treatment for such patients, who have to bear the symptoms, quite often throughout their lifetimes. Mr. Luthringer voiced his concern that schizophrenic patients suffered from a poor quality of life and functional outcomes.

The news seems to have restored the trust of investors in the stock, despite the filing of a recent, not so encouraging, 1Q2016. Minerva reported that it’s R&D and general and administrative expenses surged by $1.4 million and $0.5 million respectively. NERV reported that $1.3 million was spent on drug development programs. As of March 31, 2016, NERV had cash reserves of $44.6 million. The company reported that $17.5 million of this amount was obtained when certain stockholders exercised warrants, in connection with private placements issued in March 2015. As such, approximately 3.04 million shares of the common stock were exercised through the warrants, at a share price of $5.77 per share.

Minerva Neurosciences Inc (NASDAQ:NERV) gained a massive 233.33% in terms of share value, to reach a close at $11.80 per share, after having a trade volume of 33.16 million, during the May 26 trading session.

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