H.C. Wainwright sees path forward for Minerva's roluperidone despite setback

H.C. Wainwright analyst Douglas Tsao maintains a Buy rating on Minerva Neurosciences (NERV) after roluperidone failed to achieve its primary endpoint in a Phase 3 trial for the treatment of the negative symptoms of schizophrenia. While it is not unusual for psychiatric drugs to experience clinical setbacks, it remains to be seen how the company proceeds, Tsao tells investors in a research note. The analyst continues to see "significant value" in seltorexant, which Minerva is co-developing with Johnson & Johnson's Janssen (JNJ) for the treatment of major depressive disorder with co-morbid insomnia. In addition, Tsao continues to see a path forward for roluperidone, noting "an additional study should not be too expensive." He keeps a $20 price target on Minerva shares pending the conference call on Monday. The stock in midday trading is down 80% to $2.68.