Minerva Neurosciences (NERV) Stock Climbs On Data

Minerva Nerosciences NERV Stock News

Minerva Neurosciences Inc (NASDAQ: NERV) is flying in the market this morning with gains of more than 50%. The gains come after the company announced positive data from a phase 2b clinical study in insomnia. Here’s what’s happening:

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NERV Rockets On Positive Insomnia Trial

In a press release issued early this morning, Minerva Neurosciences announced that a phase 2b clinical trial went over incredibly well. In the trial, known as ISM2005, the company assessed seltorexant in patients with insomnia disorder.

The data from the trial suggest that seltorexant could prove to be a strong treatment option for this patient population. In fact, NERV said that the study resulted in highly statistically significant and clinically meaningful improvement in latency to persistant sleep (LPS)

According to the release, LPS came in at 15 minutes for the placebo group. However, those treated with seltorexant saw a strong increase. In fact, in the 5mg arm, LPS came in at 30 minutes. This improvement in LPS was further demonstrated with 10mg and 20mg doses, which led to 50 minutes and 48 minutes respectively.

The key secondary endpoint was known as WASO-6 at Night 1. In the placebo group, this figure came in at 15 minutes. However, in the seltorexant group, the 5mg, 10mg, and 20mg doses increased this to 23 minutes, 43 minutes, and 45 minutes respectively.

NERV also said that it saw strong data in multiple other secondary enpoints when compared to both placebo, and the standard of care available under the brand name Ambien.

In a statement, Dr. Remy Luthringer, Executive Chairman and CEO at NERV, had the following to offer:

Seltorexant is a specific orexin-2 antagonist (SORA) rather than a dual orexin receptor antagonist (DORA) and consequently has a differentiated mechanism of action that may help address numerous psychiatric disorders.

Unlike existing therapies, seltorexant is designed to mimic the natural sleep process by inhibiting the brain mechanisms that promote excessive wakefulness rather than by sedating patients through the activation of the neurotransmitters that promote sleep.

The Market Potential Here Is Incredible

With phase 2b clinical data proving to be promising, it only makes sense that Minerva Neurosciences will be moving into a pivotal phase 3 trial designed to support the market approval of seltorexant by the FDA. This is incredibly positive news as approval would allow for the entrance into a very large market.

In fact, at the moment, it is extimated that around 30% of the global population experiences insomnia. As a result, the market is quite large. In fact, Grand View Research estimates that the insomnia market could reach $3.45 billion in annual sales by 2025.

Considering that the data released by NERV suggests that its treatment is a better option than the current standard of care, the company could quickly take a large share of this market. Nonetheless, with a market cap of under $300 million, even a small portion of a $3.45 billion market would be meaningful.

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The bottom Line

The bottom line here is that the data issued by Minerva Neurosciences was great. It showed that not only is its insomnia candidate effective, it may be more effective than the current standard of care.

As such, I’m expecting that the company will move the product further down the development path, leading to more strong catalysts ahead. So, this is one to watch closely.

What Do You Think?

Where do you think NERV stock is headed moving forward! Join the discussion in the comments below!

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