Ovid Therapeutics (NASDAQ:OVID) Inc., a biopharmaceutical company, announced on Monday the promotion of Margaret "Meg" Alexander to President and Chief Operating Officer (COO), effective immediately. Alexander, who has been with Ovid since July 2021, previously held the position of Chief Strategy Officer.
The appointment, confirmed by Ovid's Board of Directors on September 8, 2024, comes with an amended and restated executive employment agreement. Under the terms of the agreement, Alexander will receive an annual base salary of $500,000 and be eligible for an annual cash incentive bonus with a target of 45% of her base salary. The actual bonus will depend on performance metrics set by the company.
In addition to her salary and potential bonus, Alexander was granted a stock option to purchase 140,000 shares of Ovid's common stock at $1.07 per share, with a 10-year term. The option will vest over four years, with 25% vesting on the first anniversary and the rest in equal monthly installments.
If Alexander faces an involuntary termination without cause or resigns for good reason, as defined in the employment agreement, she will be entitled to severance payments and benefits. These include 12 months of base salary and health plan coverage for herself and her dependents, with a tax gross-up for the premiums.
Furthermore, in the event of a change in control of the company, any unvested shares under Alexander's (NYSE:ALX) options will become fully vested and exercisable. Ovid will also enter into an indemnification agreement with Alexander, providing protection against certain liabilities related to her company affiliation, as permitted by Delaware law.
Alexander's career prior to Ovid spanned two decades, during which she created strategies for biopharmaceutical and Fortune 500 companies, including managing the Reputation and Risk Management business at Syneos Health (NASDAQ:SYNH). She holds a Bachelor of Business Administration from the College of William & Mary.
In other recent news, Ovid Therapeutics has made significant strides in its operations and development efforts. The firm recently appointed Meg Alexander as President and Chief Operating Officer, and Amanda Banks as its new Chief Development Officer.
In addition, Ovid Therapeutics has entered into a consulting agreement with former General Counsel, Thomas Perone, to ensure a smooth transition of duties following a workforce reduction.
Ovid Therapeutics is advancing its neurotherapeutic pipeline with several potential treatments in development, including OV888 for cerebral cavernous malformations, OV329 for treatment-resistant seizures, and OV350 for epilepsies and psychiatric conditions.
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.
InvestingPro Insights
As Ovid Therapeutics Inc . gears up for a new phase of leadership with Margaret Alexander at the helm, investors may be curious about the company's financial health and market performance. According to InvestingPro data, Ovid Therapeutics boasts a market capitalization of approximately $79.49 million. The company has seen a substantial revenue growth of 186.16% in the last twelve months as of Q2 2024, reflecting a potential for scalability in its operations. Despite this growth, the company's operating income margin stands at a staggering -11687.87%, indicating significant operational costs relative to its revenue.
InvestingPro Tips highlight that Ovid holds more cash than debt on its balance sheet, which is a positive sign for financial stability. However, the company is quickly burning through cash, which could be a concern for long-term sustainability. Analysts have also revised their earnings downwards for the upcoming period, suggesting that the market may have concerns about the company's future profitability. Furthermore, with a Price / Book ratio of 0.89, the stock might be considered undervalued by traditional metrics, possibly presenting an opportunity for value investors.
For those interested in a deeper dive into Ovid's financials and market performance, there are additional InvestingPro Tips available. These insights could provide valuable context for investors considering Ovid's stock following the recent executive changes. Visit InvestingPro for a comprehensive analysis and more tips to inform your investment strategy.
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