Minerva soars 140% on up to $200 mln raise to finish schizophrenia drug trial

Quotes of Minerva Neurosciences, a micro-cap developer of a drug against negative symptoms in patients with schizophrenia, soared 140% in one day. The company, which is worth just $44.8 million on the Nasdaq, said it had raised up to $200 million to complete trials of its drug and will, if they prove successful, file for approval and prepare for a commercial launch.

Minerva Neurosciences shares jumped 140% to $6.41 per share yesterday, October 21, the highest level since early 2024. In early trading today, the stock had given back 17% as of this writing.

The company said Tuesday it will raise up to $200 million from institutional investors in a private placement, issuing $80 million of Class A convertible preferred stock and two warrant packages: a tranche A for another $80 million and a tranche B for $40 million.

Proceeds will fund the phase III confirmatory trial of roluperidone, the company’s candidate for negative symptoms of schizophrenia, the resubmission of its application to the FDA, and, if successful, preparations for commercialization.

The money will be disbursed in stages. Minerva will receive the first $80 million upfront, the second $80 million within 10 days of announcing statistically significant phase III results, and the remaining $40 million either three years later or upon the same milestone.

Minerva develops treatments for central nervous system disorders. Roluperidone is its lead candidate and is designed to address negative symptoms of schizophrenia, like blunted affect, alogia, avolition, anhedonia, and asociality. People suffering with impairing negative symptoms experience a reduced quality of life, meaning increased likelihood of hospitalization and increased likelihood of unemployment.

According to the company, the FDA has not approved any drug specifically for the treatment of negative symptoms of schizophrenia.

Minerva attempted to file for approval more than a year ago but received a Complete Response Letter. The FDA acknowledged statistically significant efficacy in one trial but found the data insufficient for approval and requested an additional positive, well-controlled study. The company said it has now agreed with the FDA on the design of the confirmatory trial but did not specify when enrollment will begin.

Since the start of the year, Minerva shares have almost tripled, up 188%. The stock has only one Wall Street rating, a “hold,” according to MarketWatch. The sole target price is $5 per share, below current levels.

The AI translation of this story was reviewed by a human editor.