TLDR
- Minerva Neurosciences stock jumped over 150% on October 21, 2025, reaching a 52-week high of $6.97 after closing at $2.66 the previous day
- The company secured up to $200 million in funding from institutional investors led by Vivo Capital, with $80 million provided upfront
- Funds will finance a confirmatory Phase 3 trial of roluperidone, a drug being developed for negative symptoms of schizophrenia
- The FDA declined to approve roluperidone in February 2024, requiring an additional well-controlled study to establish efficacy
- Trading volume exceeded 39 million shares compared to the normal daily average of 500,000 shares
Minerva Neurosciences announced a private placement agreement with institutional investors on October 21, 2025, to raise up to $200 million. The news sent shares soaring over 150% in a single day.
Minerva Neurosciences, Inc., NERV
The financing deal provides $80 million upfront through Series A preferred stock. Another $80 million could come from warrant exercises tied to successful completion of the Phase 3 trial’s primary endpoint. An additional $40 million in warrants may be exercised after three years or upon trial success.
Vivo Capital leads the investment group. Other participants include Janus Henderson, Farallon Capital, Federated Hermes Kaufmann Funds, Balyasny Asset Management, and Foresite Capital. Jefferies LLC served as the sole placement agent for the deal.
The stock opened around $6 to $7 per share, up from the prior close of $2.66. It hit an intraday high of $6.97 during the session. The company had traded as low as $1.15 within the past year.
Trading volume reached 39.5 million shares on October 21. This compares to an average daily volume of approximately 500,000 shares. The surge in activity suggests intense investor interest following the funding announcement.
Minerva’s market capitalization was under $20 million before the rally. The stock surge pushed the company’s valuation to approximately $48 million. Prior to the announcement, NERV carried a “Reduce” consensus rating from the two analysts covering it.
Funding Schizophrenia Drug Development
The cash will fund a confirmatory Phase 3 trial of roluperidone and preparation for resubmitting a New Drug Application to the FDA. Roluperidone targets negative symptoms of schizophrenia, which include social withdrawal, apathy, and blunted emotional expression.
The FDA issued a Complete Response Letter in February 2024, declining to approve the drug. Regulators requested at least one additional positive study to establish substantial evidence of efficacy. They also asked for more safety data when roluperidone is used with other antipsychotics.
Minerva and the FDA aligned on the Phase 3 trial design in August 2025. The company says the new capital should carry it through the trial and NDA filing phase. The study will be larger than initially planned and will incorporate FDA feedback.
Roughly 50% to 60% of people with schizophrenia experience persistent primary negative symptoms. Currently no approved medications specifically target this aspect of the illness. Standard antipsychotic drugs primarily address positive symptoms like hallucinations and delusions.
Changes to Corporate Governance
The financing agreement includes expanding Minerva’s Board of Directors by up to three seats. These positions will be filled by investor-designated directors with schizophrenia clinical trial experience. The changes aim to strengthen clinical operations management for the Phase 3 trial.
CEO Dr. Remy Luthringer said the team will focus on successful execution of the confirmatory trial. The goal is to demonstrate roluperidone’s efficacy for patients with debilitating negative symptoms.
The deal is expected to close on or about October 23, 2025. It remains subject to standard closing conditions. Minerva will seek shareholder approval to authorize additional shares for preferred stock conversion at $2.11 per share.
The company had zero debt on its balance sheet before the financing. It maintained a current ratio of approximately 6.1, indicating decent short-term liquidity. Minerva had been reviewing strategic alternatives earlier in 2025, including possible mergers or asset sales.
Get 3 Free Stock Ebooks
Discover top-performing stocks in AI, Crypto, and Technology with expert analysis.
- Top 10 AI Stocks - Leading AI companies
- Top 10 Crypto Stocks - Blockchain leaders
- Top 10 Tech Stocks - Tech giants
