On Wednesday, BTIG reiterated its Buy rating on Ovid Therapeutics Inc (NASDAQ:OVID), maintaining a $5.00 price target for the company's shares. The firm's positive stance is anchored in the anticipated Phase 2 trial for OV888 in cerebral cavernous malformations (CCM), set to commence in the second half of 2024.
The trial aims to rapidly establish proof of concept (PoC) for the treatment, which has shown potential in animal models to resolve complex blood vessel tangles visible in patients.
Ovid Therapeutics' management, who recently participated in the BTIG Healthcare Conference, discussed the OV888 program's approach to addressing CCM. OV888 is a selective ROCK2 inhibitor designed to penetrate the brain and mitigate the side effects associated with first-generation ROCK inhibitors.
The upcoming study will employ patient enrichment strategies and biomarkers, such as radiological endpoints, to facilitate an earlier assessment of treatment effects. The focus will be on patients with symptomatic visible lesions, particularly those at higher risk of severe outcomes like intracerebral hemorrhage and death.
In addition to OV888, Ovid is advancing OV329, a compound intended to be a safer alternative to the epilepsy drug Vigabatrin. OV329 is currently undergoing a Phase 1 multiple ascending dose study, with completion expected in the second half of 2024. Preclinical safety data for OV329 are scheduled for presentation in September, demonstrating that at therapeutic concentrations, OV329 does not accumulate in the eye as Vigabatrin does, potentially reducing the risk of ocular toxicity.
The company has further plans to submit an Investigational New Drug (IND) application for another candidate, OV350, in the latter half of 2024. OV350 is a novel KCC2 activator that is being developed to enhance the efficacy of benzodiazepines. The submission of the IND will mark a significant step in the development of this potential new therapy.
In other recent news, Ovid Therapeutics has seen several significant developments. The biopharmaceutical company announced the appointment of Amanda Banks, M.D., as its new Chief Development Officer. Dr. Banks, who brings extensive experience in neurology and clinical strategy, will lead the clinical development, medical, and regulatory affairs at Ovid.
Additionally, Ovid Therapeutics entered into a consulting agreement with former General Counsel, Thomas Perone. The agreement ensures a smooth transition of duties following Mr. Perone's departure due to a workforce reduction. The company also announced findings from preclinical studies suggesting that its developmental drug, OV329, may offer a new approach for treating drug-resistant seizures.
In terms of analyst notes, TD Cowen maintained its Buy rating on Ovid Therapeutics' shares despite setbacks in Phase 3 trials for soticlestat, a treatment for epilepsy syndromes. Conversely, Oppenheimer downgraded the stock from Outperform to Perform. Ovid Therapeutics continues to prioritize its programs strategically, aiming to extend its cash runway into the first half of 2026.
InvestingPro Insights
As Ovid Therapeutics Inc (NASDAQ:OVID) gears up for significant clinical trial milestones, a look at the company's financial health and stock performance could provide investors with a comprehensive view of its prospects. According to InvestingPro data, Ovid Therapeutics holds a market capitalization of $62.32 million, with a striking revenue growth of 283.93% in the last twelve months as of Q1 2024. Despite this growth, the company's operating income margin is deeply negative at -13047.52%, indicating substantial costs relative to its revenue.
InvestingPro Tips suggest that Ovid holds more cash than debt on its balance sheet, which could provide some financial stability as it moves forward with its clinical trials. Additionally, two analysts have revised their earnings upwards for the upcoming period, suggesting a potential positive outlook on the company's financial performance. However, it's important to note that analysts do not anticipate the company will be profitable this year, and the stock has experienced significant price volatility.
For investors considering Ovid Therapeutics as part of their portfolio, these insights underscore the importance of balancing the promising developments in the company's pipeline with the realities of its current financial performance. For more detailed analysis and additional InvestingPro Tips, interested parties can explore the full suite of tools and insights available at InvestingPro.
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