Minerva Neurosciences Secures Major Funding Boost

Minerva Neurosciences (NASDAQ: NERV) shares skyrocketed as much as 160% premarket Tuesday after the company announced a financing agreement of up to $200 million and plans to resubmit its New Drug Application (NDA) for roluperidone, its experimental schizophrenia therapy.

The financing provides a significant capital injection to advance the company’s late-stage clinical and regulatory initiatives.

Details of the $200 Million Financing

Under the securities purchase agreement with institutional investors, Minerva could raise up to $200 million in gross proceeds through a private placement structured as follows:

$80 million upfront from the sale of Series A convertible preferred stock
$80 million upon the exercise of Tranche A warrants
$40 million upon the exercise of Tranche B warrants, contingent on achieving defined milestones

The funding round is led by Vivo Capital LLC, with participation from new and existing investors.

Use of Proceeds

Minerva said proceeds will support:

The confirmatory Phase 3 trial of roluperidone
Preparation and resubmission of its NDA to the U.S. FDA
Commercial readiness for U.S. launch upon approval
Working capital and general corporate purposes

This marks a major step forward for Minerva as it aims to bring a novel schizophrenia treatment closer to market.

Roluperidone: Targeting Unmet Needs in Schizophrenia

Roluperidone is designed to treat the negative symptoms of schizophrenia, including:

Social withdrawal
Emotional flatness
Apathy and reduced motivation

If approved, roluperidone would address a critical unmet need, as few current therapies effectively target these persistent symptoms.

Market Reaction

The news sparked a massive rally in NERV shares, as investors responded to the company’s renewed financing strength, clinical progress, and potential commercial pathway.