Revision to J&J insomnia deal boosts Minerva shares
Minerva Neurosciences Inc. (NASDAQ:NERV) gained $1.75 (21%) to $10 after amending a 2014 deal with the Janssen Pharmaceutica N.V. subsidiary of Johnson & Johnson (NYSE:JNJ) to co-develop and commercialize orexin 2 receptor (OX2R; HCRTR2) antagonist MIN-202. Minerva will gain global development rights to MIN-202 in insomnia and will repurchase Minerva shares owned by the pharma's Johnson & Johnson Innovation - JJDC Inc. unit for a nominal fee.
Janssen is to pay Minerva $30 million up front and relinquish its rights to royalties on sales of MIN-202 in the EU and other territories. Minerva is eligible for two $20 million milestones tied to a Phase III trial of the candidate to treat insomnia. Janssen will also waive the $13 million in remaining payments Minerva owes in connection with MIN-202's Phase II program. Minerva will fund Phase III trials in insomnia on its own...