NEW YORK - Ovid Therapeutics Inc . (NASDAQ:OVID), a biopharmaceutical firm, recently presented findings from a preclinical study comparing its investigational drug OV329 to vigabatrin, a current standard treatment for epilepsy. The results indicate that OV329 did not accumulate in the retina, eye, or brain tissues of mice, which may suggest a safer ocular profile compared to vigabatrin. These findings were shared at the Epilepsy Pipeline Conference and will be detailed further at the American Epilepsy Society conference in December 2024.
The study administered OV329 and vigabatrin to mice via a subcutaneous osmotic pump, with OV329 dosed at 5 mg/kg/day, exceeding expected human exposure levels, while vigabatrin was administered at its therapeutic level. OV329 was undetectable in target tissues after 48 hours, unlike vigabatrin, which has shown a tendency to accumulate, particularly in the retina, and is associated with ocular toxicity at therapeutic doses in humans.
Dr. Zhong Zhong, Chief Scientific Officer of Ovid Therapeutics, highlighted OV329's rapid tissue clearance and prolonged pharmacodynamic effect, which are believed to contribute to its differentiated safety and efficacy profile. The drug is designed to inhibit GABA-aminotransferase, increasing levels of GABA, a neurotransmitter that can suppress seizures.
The company is on track to complete a Phase 1 trial of OV329 in healthy volunteers by late 2024. This trial will assess safety and measure two biomarkers to gauge target engagement and potential clinical effects.
OV329 is being developed as a potential treatment for rare and treatment-resistant forms of epilepsy, such as those associated with tuberous sclerosis complex, infantile spasms, and focal onset seizures. Ovid Therapeutics is focused on advancing a pipeline of targeted small molecule candidates for rare epilepsies and brain conditions.
The information in this article is based on a press release statement from Ovid Therapeutics.
In other recent news, Ovid Therapeutics has seen significant changes in its executive team and is making strides in its operations and development efforts. The biopharmaceutical company appointed Margaret "Meg" Alexander as President and Chief Operating Officer, a promotion from her previous role as Chief Strategy Officer. Amanda Banks, M.D., has been named as the new Chief Development Officer, and a consulting agreement has been initiated with former General Counsel, Thomas Perone, to ensure a smooth transition of duties following a workforce reduction.
Ovid Therapeutics is also advancing its neurotherapeutic pipeline, with potential treatments in development including OV888 for cerebral cavernous malformations, OV329 for treatment-resistant seizures, and OV350 for epilepsies and psychiatric conditions. Analyst firms BTIG and TD Cowen have maintained their Buy ratings on Ovid Therapeutics, highlighting the potential of the upcoming Phase 2 trial for OV888 and the promise shown by OV329 in preclinical studies. However, Oppenheimer has downgraded the stock from Outperform to Perform. These recent developments highlight Ovid Therapeutics' strategic approach to prioritizing its programs and extending its cash runway.
InvestingPro Insights
Ovid Therapeutics Inc. (NASDAQ:OVID) has been actively working on its pipeline of treatments for rare epilepsies, with recent preclinical studies showing promising safety profiles for its investigational drug OV329. As the biopharmaceutical firm progresses with its clinical trials, financial metrics and analyst insights provide a broader context for investors considering Ovid's market position and future prospects.
InvestingPro data reveals that Ovid's market capitalization stands at $79.49 million, reflecting the company's current valuation in the market. Despite facing challenges such as a high revenue valuation multiple and a significant price decline over the last year, Ovid's gross profit margin for the last twelve months as of Q2 2024 is reported at 100%, underscoring the company’s ability to maintain profitability on its revenues. However, it's noteworthy that Ovid is not profitable over the last twelve months, with an operating income margin of -11687.87%, indicating substantial operating losses relative to its revenue.
InvestingPro Tips for Ovid Therapeutics highlight the company's financial health and stock performance nuances. Ovid holds more cash than debt on its balance sheet, which is a positive sign of financial stability. Additionally, the company's liquid assets exceed its short-term obligations, suggesting a solid liquidity position to meet immediate financial needs. On the flip side, analysts have revised their earnings downwards for the upcoming period, and do not anticipate the company will be profitable this year. These insights are essential for investors to weigh the potential risks and opportunities associated with Ovid's financial trajectory.
For those looking to delve deeper into Ovid's financial and operational performance, there are over 10 additional InvestingPro Tips available at https://www.investing.com/pro/OVID. These tips can offer further clarity on the company's stock trends, valuation, and analysts' expectations, providing a comprehensive view for informed investment decisions.
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