Replies to post #224850 on Biotech Values

[DewDiligence]

NERV -18% on purportedly positive phase-2 results in depression; the problem could be this:

https://finance.yahoo.com/news/minerva-neurosciences-announces-positive-top-121500685.html

The least squares mean (LS mean) difference from placebo of the change in MADRS total score at the end of week 6 was 3.1 for the 20 mg dose of seltorexant, and the 2-sided p-value was 0.083, which is below the pre-specified 2-sided type I error level of 0.1.

Why would the pre-specified type-1 error be as high as 0.10? Doesn’t pass the sniff test.