Biotech Breakout: Minerva Neurosciences Secures $200 Million for Schizophrenia Drug Push -( $NERV $IBB $XBI )

Published Oct 21, 2025
Biotech & Healthcare
Market News

By John F. Heerdink, Jr.

Minerva Neurosciences (NERV) has staged a dramatic comeback on Wall Street Tuesday after the company unveiled a financing agreement worth up to $200 million aimed at advancing its schizophrenia drug candidate, roluperidone, through a pivotal Phase 3 trial and eventual U.S. regulatory resubmission.

Financing Details

The Burlington, Massachusetts–based biotech said it secured an initial $80 million upfront via the sale of Series A preferred stock to institutional investors, with another $80 million available through the exercise of Tranche A warrants. A further $40 million could follow if Tranche B warrants are exercised upon achievement of specific milestones. The private placement is led by Vivo Capital with participation from Janus Henderson and Federated Hermes Kaufmann Funds, and Jefferies acted as the sole placement agent.

Proceeds from the deal are expected to fund a confirmatory Phase 3 trial evaluating roluperidone for the treatment of negative symptoms in schizophrenia patients, support a resubmission of its New Drug Application (NDA) with the FDA, and prepare for a potential U.S. commercial launch. In connection with the financing, Minerva will also add three directors experienced in schizophrenia clinical trials to its board—bolstering its clinical operations team.

Strategic Significance

Roluperidone is designed to treat “negative symptoms” of schizophrenia such as social withdrawal and lack of motivation, an area with few effective treatments. The FDA had previously issued a complete response letter but recently aligned with Minerva on the structure of its confirmatory trial, offering new momentum for regulatory prospects. CEO Remy Luthringer said the financing “positions the company to execute this trial with rigor and clarity of purpose” as Minerva aims to present evidence capable of demonstrating roluperidone’s efficacy.

Market Reaction

Investors welcomed the announcement with exuberance. On Tuesday, Minerva’s shares (NASDAQ: NERV) surged more than 330%, trading as high as $12.15 after closing Monday at $2.66. The stock was recently up 239% at $9.10, tallying one of its most active sessions on record with volume exceeding 70 million shares—compared with an average of less than one million.

That sharp rally places the company among the day’s top-performing biotech names. Even after some midday cooling, NERV remains the subject of intense retail and institutional trader interest, signaling optimism that the long-delayed roluperidone program could advance meaningfully following regulatory alignment and financial strengthening.

Outlook

Should the financing close as expected later this week, Minerva is projected to have sufficient capital to fund operations through the completion of its confirmatory Phase 3 study and the potential NDA resubmission. While the biotech has faced setbacks in the past, Tuesday’s surge underscores renewed market confidence in its clinical and strategic direction.

In the words of one analyst note,
“This deal gives Minerva the runway to finish what it started.”