When a company such as Minerva Neurosciences conducts a reverse share split, it is usually because shares have fallen to a lower per-share pricepoint than the company would like. This can be important because, for example, certain types of mutual funds might have a limit governing which stocks they may buy, based upon per-share price. The $5 and $10 pricepoints tend to be important in this regard. Stock exchanges also tend to look at per-share price, setting a lower limit for listing eligibility. So when a company does a reverse split, it is looking mathematically at the market capitalization before and after the reverse split takes place, and concluding that if the market capitilization remains stable, the reduced share count should result in a higher price per share.

Looking at the NERV split history from start to finish, an original position size of 1000 shares would have turned into 125 today. Below, we examine the compound annual growth rate — CAGR for short — of an investment into Minerva Neurosciences shares, starting with a $10,000 purchase of NERV, presented on a split-history-adjusted basis factoring in the complete NERV split history.

About Minerva Neurosciences

Minerva Neurosciences is a clinical-stage biopharmaceutical company focused on the development and commercialization of product candidates to treat patients suffering from central nervous system diseases. Co.'s primary product candidate is roluperidone, a compound it is developing for the treatment of negative symptoms in patients with schizophrenia. Co. holds the license to roluperidone from Mitsubishi Tanabe Pharma Corporation with the rights to develop, sell and import roluperidone globally, excluding most of Asia. Co. also has exclusive rights to develop and commercialize MIN-301, a compound for the treatment of Parkinson's disease. According to our NERV split history records, Minerva Neurosciences has had 1 split.

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