Shares of Minerva Neurosciences (NASDAQ:NERV) plunged by almost one-third in today’s trading session. This can be attributed to the FDA’s decision to not review the company’s schizophrenia treatment.
As a pre-revenue biotech company, this is a major blow to management and its investors because it means Minerva will continue to burn cash. Nevertheless, the firm will continue to work with the FDA to address its feedback and form a plan to move forward.
NERV investors have had a very volatile ride over the past six months. Shares surged from the low-$3 range to over $15 per share. However, investors who held on now have shares that are trading in the mid-$1 range.
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