Minerva Neurosciences (NERV) AI Stock Analysis

• Market Cap: $14.90M
• Dividend Yield: N/A
• Average Volume (3M): 14.61K
• Price to Earnings (P/E): 2.6
• Beta (1Y): 1.52
• Revenue Growth: N/A
• EPS Growth: N/A
• Country: US
• Employees: 8
• Sector: Healthcare
• Sector Strength: 41
• Industry: Biotechnology
• EPS (TTM): -0.50
• Shares Outstanding: 6,993,406
• 10 Day Avg. Volume: 34,282
• 30 Day Avg. Volume: 14,613
• PEG Ratio: 0.07
• Price to Book (P/B): -0.55
• Price to Sales (P/S): 0.00
• P/FCF Ratio: >-0.01
• Enterprise Value/Market Cap: -0.58
• Enterprise Value/Revenue: -205.57
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: 0.23
• 1Y Price Target: $5.00
• Price Target Upside: 134.74% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 0

• Rating: 34 Underperform
• Price Target: ―

The overall stock score for Minerva Neurosciences is driven by significant financial instability, marked by negative equity and a lack of revenue. While the valuation suggests potential undervaluation, the financial risks present significant concerns. Technical indicators show some short-term positivity, but long-term trends are not favorable. The absence of earnings call and corporate events data means these factors do not influence the score.

Positive Factors

Drug 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.

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

Financial Health

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.

Regulatory Challenges

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.

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

Overall, Minerva Neurosciences faces significant financial challenges. The income statement reflects a lack of revenue generation, coupled with ongoing operational losses. The balance sheet shows negative equity, raising solvency issues. Cash flow analysis indicates a consistent inability to generate positive operating cash flows, underscoring operational inefficiencies. These factors combined suggest a high-risk financial position with urgent need for strategic changes to improve financial health.

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	-102.00K	41.18M
EBITDA	6.02M	-21.69M	-24.69M	-51.61M	2.12M
Net Income	1.44M	-30.00M	-32.11M	-49.91M	1.94M
Balance Sheet
Total Assets	37.14M	56.90M	55.09M	77.12M	57.63M
Cash, Cash Equivalents and Short-Term Investments	21.46M	41.01M	36.09M	60.76M	25.36M
Total Debt	0.00	82.02M	73.73M	0.00	111.23K
Total Liabilities	62.84M	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	-19.55M	-14.78M	-24.66M	-24.60M	-33.82M
Operating Cash Flow	-19.55M	-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: Positive
• Last Price: 2.13
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• 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 Positive. The current price of 2.13 is above the 20-day moving average (MA) of 1.84, above the 50-day MA of 1.73, and above the 200-day MA of 1.97, indicating a bullish trend. The MACD of 0.10 indicates Negative momentum. The RSI at 66.22 is Neutral, neither overbought nor oversold. The STOCH value of 65.82 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for NERV.

Minerva Neurosciences Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	46 Neutral	C$204.55M	-3.23	-23.14%	1.87%	20.75%	-0.36%
NERV	34 Underperform	$14.90M	2.58	>-0.01%	―	―	―
ERNA	―	$14.35M	―	-2264.31%	―	―	―
ADXN	55 Neutral	$13.72M	0.74	-162.42%	―	-82.24%	―
SNSE	40 Underperform	$8.80M	―	-64.18%	―	―	1.00%
ATHA	36 Underperform	$17.88M	―	-110.70%	―	―	18.61%
TRAW	28 Underperform	$8.79M	―	-576.08%	―	―	-404.67%