Minerva Neurosciences Shares Soar On New Amended Agreement With Janssen

Minerva Neurosciences, Inc. (NERV), a clinical-stage biopharmaceutical company yesterday announced an amended agreement for MIN-202 used for Insomnia.

The agreement is with Janssen and states Minerva will gain global control for the development of MIN-202. It also states that Janssen will make cash payments up to $70 million, including $30 million upfront to Minerva.      

Minerva Neurosciences, Inc. CEO’s  Comments

“We view the new agreement with Janssen as a structure that will ensure a more focused and efficient clinical development of MIN-202 in insomnia by Minerva,” said Dr. Remy Luthringer, president and chief executive officer of Minerva.  “We look forward to continuing our collaboration with Janssen while accelerating the clinical advancement of our portfolio.  In addition, the infusion of financial resources under this agreement significantly extends Minerva’s financial runway.”  Globe Newswire

NERV Technical Analysis

(Click on image to enlarge)

Minerva Neurosciences

NERV opened trading yesterday at $8.55 which was exactly the same as the previous day’s trading close. Shares closed trading yesterday at $8.25 and spiked up after market to $9.55, equivalent to a 16% increase from the closing price. Taking a look at the daily chart we can see the last time NERV traded above these levels we have to go back to February 17th when it traded at $9.90.

Taking a closer look at the daily chart we can see that before the spike up NERV had been in an overall downward trend dating back to November 25th, 2016 when it traded at $14.00. NERV has a float of 21.95 million shares and traded 1.75 times the normal daily trading volume on Wednesday.

For trading purposes, I would like to see NERV open trading on Thursday above $9.10 or the VWAP and if it does I would be looking to take a long position at the bell. My stop loss would be $0.20 from my entry position fearing anything more than that and the stock would start to fill in the gap up.

Disclaimer: This is not meant to be a recommendation to buy or to sell securities nor an offer to buy or sell securities. Before selling or buying any stock or other investment you should consult ...

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