Minerva Neurosciences (NERV) AI Stock Analysis

• Market Cap: $9.37M
• Dividend Yield: N/A
• Average Volume (3M): 18.93K
• Price to Earnings (P/E): 7.0
• Beta (1Y): 1.69
• Revenue Growth: N/A
• EPS Growth: N/A
• Country: US
• Employees: 8
• Sector: Healthcare
• Sector Strength: 74
• Industry: Biotechnology
• EPS (TTM): 0.19
• Shares Outstanding: 6,993,406
• 10 Day Avg. Volume: 22,373
• 30 Day Avg. Volume: 18,930
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• Price to Cash Flow (P/CF): -0.60
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $5.00
• Price Target Upside: 270.37% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

Minerva Neurosciences is in a precarious financial position, highlighted by significant operational losses, negative equity, and poor cash flow generation. Technical analysis points to a bearish trend with oversold indicators. The negative P/E ratio underscores valuation difficulties. These factors cumulatively suggest a high-risk, low-reward investment scenario.

Positive Factors

Clinical Study Safety

The study demonstrated an acceptable safety profile of co-administration of the two medications, and no relevant PK interactions were observed between the two drugs.

Financial Performance

Minerva posted an EPS of $2.97, significantly above the estimate of a $1.01 loss per share.

Strategic Partnerships

Boehringer Ingelheim owns 18% of the company after taking a stake in Minerva, so it is suspected they will support the further development of roluperidone.

Negative Factors

Cash Flow and Funding

The company reported cash at $21.5M by the end of 2024, compared with the cash position at $41M by the end of 2023; the company should have approximately one-year cash runway.

Clinical Trial Concerns

The company's efforts to avoid needing to do another Phase 3 study appears to be counterproductive since the Agency has made it clear on the need for at least one additional study to support the safety and effectiveness of roluperidone.

Regulatory Challenges

The company received a complete response letter from the FDA for its NDA of roluperidone, and interactions have not provided clarity on the path forward.

Minerva Neurosciences Business Overview & Revenue Model

Company Description

Minerva Neurosciences, Inc., a clinical-stage biopharmaceutical company, focuses on the development and commercialization of product candidates for the treatment of central nervous system diseases. Its lead product candidate is roluperidone for the treatment of schizophrenia; and MIN-301, a soluble recombinant form of the neuregulin-1b1 protein for the treatment of Parkinson's disease and other neurodegenerative disorders. Minerva Neurosciences, Inc. has a license agreement with Mitsubishi Tanabe Pharma Corporation to develop, sell, and import roluperidone globally excluding Asia. The company was formerly known as Cyrenaic Pharmaceuticals, Inc. and changed its name to Minerva Neurosciences, Inc. in 2013. Minerva Neurosciences, Inc. was incorporated in 2007 and is headquartered in Waltham, Massachusetts.

How the Company Makes Money

Minerva Neurosciences makes money through the development and potential future commercialization of its proprietary drug candidates, which are aimed at treating central nervous system disorders. The company seeks to advance its drug candidates through clinical trials, obtain regulatory approval, and eventually bring these therapies to market. Revenue generation is expected to come from product sales, licensing agreements, and strategic partnerships with other pharmaceutical companies. However, as a clinical-stage company, Minerva Neurosciences currently does not have significant revenue from product sales and relies on funding through public and private investments to support its research and development activities.

Minerva Neurosciences Financial Statement Overview

Summary

Minerva Neurosciences faces significant financial challenges. The income statement shows a lack of revenue generation, ongoing operational losses, and negative profitability margins. The balance sheet reflects negative equity, indicative of solvency issues, and liabilities exceeding assets. Cash flow analysis indicates persistent negative operating cash flows, highlighting operational inefficiencies and financial sustainability concerns.

Income Statement

The income statement shows significant challenges. The company has not reported any revenue since 2020, indicating a lack of sales or operational income. Net income has been highly volatile, with significant losses in recent years, except for a positive net income in 2024, which seems driven by non-operational factors. The absence of revenue growth and negative profitability margins signal financial instability.

Balance Sheet

The balance sheet reflects substantial financial distress with negative stockholders' equity, indicating liabilities exceed assets. The debt-to-equity ratio is not calculable due to negative equity, highlighting severe financial leverage issues. Total liabilities greatly exceed assets, and the equity ratio is negative, pointing to potential solvency concerns.

Cash Flow

Cash flows show persistent negative free cash flow, indicating the company is not generating sufficient cash from operations to cover its expenses. Operating cash flow has been consistently negative, and while there was a positive financing cash flow in some years, this indicates reliance on external financing. The inability to generate positive cash flow raises concerns about the company's operational efficiency and financial sustainability.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
0.00	0.00	0.00	0.00	41.18M
	Gross Profit
0.00	-30.98K	-8.51K	-101.79K	41.18M
	EBIT
-21.85M	-23.12M	-25.23M	-45.37M	1.85M
	EBITDA
-21.85B	-21.69M	-24.69M	-51.61M	1.93M
	Net Income Common Stockholders
1.44M	-30.01M	-38.99M	-49.91M	1.94M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
21.36B	41.01M	36.09M	60.76M	25.36M
	Total Assets
37.14B	56.90M	55.09M	77.12M	57.63M
	Total Debt
0.00	82.02M	73.73M	0.00	111.23K
	Net Debt
-21.36M	-40.91M	37.64M	-60.76M	-25.25M
	Total Liabilities
62.84B	85.36M	75.11M	69.15M	4.96M
	Stockholders Equity
-25.69B	-28.46M	-20.02M	7.98M	52.66M
Cash Flow		Free Cash Flow
-19.55B	-14.78M	-24.66M	-24.60M	-33.82M
	Operating Cash Flow
-19.55B	-14.78M	-24.65M	-24.60M	-33.82M
	Investing Cash Flow
0.00	0.00	-16.33K	0.00	24.53M
	Financing Cash Flow
0.00	19.60M	-5.00	60.00M	13.24M

Minerva Neurosciences Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 1.35
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For NERV, the sentiment is Negative. The current price of 1.35 is below the 20-day moving average (MA) of 1.63, below the 50-day MA of 1.81, and below the 200-day MA of 2.41, indicating a bearish trend. The MACD of -0.03 indicates Negative momentum. The RSI at 36.31 is Neutral, neither overbought nor oversold. The STOCH value of 32.39 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for NERV.

Minerva Neurosciences Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ACAD	76 Outperform	$2.50B	11.00	38.89%	―	31.85%	―
NBIX	68 Neutral	$9.50B	28.95	14.16%	―	24.81%	33.67%
AXSM	51 Neutral	$4.96B	―	-231.63%	―	42.53%	-15.29%
Sector *	48 Neutral	$6.36B	1.28	-45.04%	2.64%	19.24%	1.69%
SAGE	48 Neutral	$425.45M	―	-63.37%	―	-52.30%	27.13%
PRTA	47 Neutral	$552.26M	―	-23.34%	―	47.92%	17.84%
NERV	26 Underperform	$9.37M	7.05	>-0.01%	―	―	―