CUPERTINO, Calif. - Reviva Pharmaceuticals Holdings, Inc. (NASDAQ:RVPH) closed a $10 million financing on March 20, bringing its cash position to approximately $23 million, according to a press release statement. The financing provides crucial runway for the company, which currently trades at a market capitalization of just $10.97 million with shares at $0.86.
The late-stage pharmaceutical company said the funds will support operations into the first quarter of 2027. The financing follows a recent reverse stock split as the company works to advance its drug candidate brilaroxazine through clinical development for schizophrenia treatment.
Reviva filed a composition of matter patent application for a new form of brilaroxazine and plans to pursue accelerated review. The company intends to seek FDA alignment on using this new formulation in its planned new drug application submission, which would include switching the active pharmaceutical ingredient in the second Phase 3 trial. The company expects FDA feedback by mid-2026.
The patent strategy aims to extend commercial exclusivity for brilaroxazine potentially through 2046, according to CEO Laxminarayan Bhat.
The company plans to initiate trial-related activities for its second Phase 3 trial, RECOVER-2, in the second quarter of 2026, with patient enrollment in the United States expected to begin in the third quarter. The FDA has cleared the trial protocol, and study completion is anticipated in the fourth quarter of 2027.An InvestingPro analysis shows Reviva holds more cash than debt on its balance sheet, though the company is not expected to be profitable this year. Shares have declined 84.65% year-to-date, trading well below the 52-week high of $23.20.
Reviva's first Phase 3 RECOVER trial in schizophrenia met all primary and secondary endpoints with statistically significant reductions across major symptom domains at week 4 with 50 mg of brilaroxazine versus placebo.
The company said it is evaluating strategic alternatives to maximize the value of brilaroxazine. Reviva also intends to develop the drug candidate for other neuropsychiatric indications including bipolar disorder, major depressive disorder, and attention-deficit/hyperactivity disorder.
In other recent news, Reviva Pharmaceuticals Holdings, Inc. has announced several key developments. The company completed a public offering that raised approximately $10 million in gross proceeds. This offering included the sale of 6,666,667 shares of common stock or equivalents at $1.50 per share, alongside Series G and Series H warrants. Reviva Pharmaceuticals also provided updates on its brilaroxazine development program for schizophrenia, including a new patent application that could extend commercial exclusivity potentially through 2046. In addition to these developments, D. Boral Capital downgraded Reviva Pharmaceuticals' stock rating from Buy to Hold following the company's announcement of a 1-for-20 reverse stock split. The downgrade reflects the firm's reassessment of the stock in light of the recent reverse split. These events highlight significant financial and strategic maneuvers by Reviva Pharmaceuticals as it seeks to advance its business objectives.