Reviva Pharmaceuticals advances schizophrenia drug with new trial plans

Reviva Pharmaceuticals Holdings Inc. saw a significant price drop of 9.84% as it crossed below its 5-day SMA amid the announcement of its plans for a second Phase 3 trial for brilaroxazine.

The company is set to initiate the RECOVER-2 trial in mid-2026 to gather more efficacy and safety data for brilaroxazine, which is aimed at treating schizophrenia. This trial is crucial for supporting the NDA submission, showcasing Reviva's commitment to addressing unmet medical needs in this area. Additionally, Reviva reported a net loss of approximately $19.9 million for fiscal year 2025, an improvement from the previous year, and raised $10 million through a public equity offering to fund this trial and other R&D activities.

The implications of this trial are significant as it could enhance the drug's profile in the market, potentially leading to better treatment options for patients with schizophrenia and improving the company's financial outlook.