Minerva Neurosciences posts Q3 profit on non-cash warrant gain

Overview

• US CNS drug developer reported Q3 net income driven by non-cash warrant liability gain

• R&D and G&A expenses increased due to Phase 3 trial costs and higher compensation

Outlook

• Company expects topline efficacy data from Phase 3 trial of roluperidone in 2H 2027

• Topline data from longer-term relapse phase of trial expected in 2H 2028

• Minerva highlights ongoing need for non-dopaminergic treatments for negative symptoms of schizophrenia

Result Drivers

• PHASE 3 TRIAL COSTS - Co said higher R&D expense was due to costs related to the ongoing Phase 3 trial of roluperidone

• COMPENSATION AND PROFESSIONAL FEES - Co said higher G&A expense was due to increased compensation and professional service fees

• NON-CASH WARRANT GAIN - Q3 GAAP net income was driven by a $109.6 mln non-cash gain on changes in fair value of the warrant liability

Company press release:

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 2 "strong buy" or "buy", 1 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the biotechnology & medical research peer group is "buy"

• Wall Street's median 12-month price target for Minerva Neurosciences, Inc is $10.00, about 334.8% above its November 5 closing price of $2.30

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)