The share of Minerva Neurosciences was in an all time high when the news of a positive clinical trial came out in the market. Minerva Neurosciences is a biopharmaceutical company that is currently working on an anti-depressant drug and schizophrenia treatment.
Minerva Neurosciences (NERV) stock price rose from $10 to $17. The stock skyrocketed to 238% which is 11.98 on the recent trade. This was an all time high record to date. Fifteen minutes after the market opened, a volume of 1.4 million shares poured into the company. It was more than 15 times on an average full day market.
The company announced that the MIN-117 Phase-II a trial showed superiority over the placebo. 24% of patients achieve remission and favorable tolerability to the drug. Remy Luthringer, Chief Executive Officer shared that the results of MIN 117 trials showed to be a promising antidepressant drug that has a good tolerability profile and differentiated mechanism of action.
Aside from MIN-117, Minerva Pharmaceutical is also working on MIN-101 which is pending for approval for the treatment of schizophrenia. The company has 65% probability that MIN-101 will get its final approval in 2020.
The shares of Minerva are down to 8.43% with a $10.81 per share on Friday after spiking to more than 200% on Thursday. After the heavy trading volume last Friday, Minerva Neurosciences have 6.80 million shares. So far, it is above the average trading volume which is around 1.19 million shares a day.
Prevalence of Depression
The World Health Organization reported that around 450 million people worldwide suffer from mental illness and one out of four people meets the criteria of mental illness at a certain point of their lives. Depression is one of the types of mental illness, and it is believed that it affects almost 350 million people worldwide. The burden of having depression is also 50% higher in women than in men.
In a study conducted on the adult population in US, the lifetime prevalence of having a major depressive disorder is 16.2% while a 12 month prevalence of 6.6%. In a survey conducted in 16 European countries, 27% of adult Europeans are affected by depression.
Depression is also prevalent both in low and middle income countries ranging from 11.1 to 53%.
Depression proves to be one of the most prevalent mental illnesses worldwide. Thus, the market for anti-depressant drug is really massive not just in the US but in other countries as well. The significant findings of the clinical trials conducted by Minerva Neurosciences shows a new potential drug that can make it big in the market few years from now.
Minerva Neurosciences have high hopes for the results of their clinical trials. They strongly believe that their two flagship drugs will have a solid market because of its lesser side effects. The clinical finding also showed that their antidepressant drugs did not report any adverse effects.
The huge potential of this antidepressant drug may have influence the investors to put their shares in the company. Once Minerva got FDA approval, this drug has a stable market and a lofty earning potential.
Fiske, A. (2009). Depression in Older Adults. Annu Rev Clin Psychol , 363-389.
Mossie, A. (2016). Prevalence and Severity of Depression and Its Association with Substance Use in Jimma Town, Southwest Ethiopia. Depress Res Treat. .