On Tuesday, TD Cowen reaffirmed its Buy rating on shares of Ovid Therapeutics Inc (NASDAQ: NASDAQ:OVID), following the company's release of encouraging Phase 1 placebo-controlled multiple ascending dose data for its ROCK2 inhibitor, OV888. The study results indicated that all administered doses were well-tolerated, with no serious adverse events reported.
The laboratory findings revealed increases in total bilirubin levels without hyperbilirubinemia, a condition characterized by an excessive level of bilirubin in the blood. These findings were in line with the known effects on the UGT1A1 enzyme, a phenomenon common to this class of drugs, and were considered to be clinically insignificant.
Additionally, the data demonstrated dose-dependent increases in interleukin-17 (IL-17) and interleukin-21 (IL-21), which are indicative of the drug successfully engaging its intended target. The presence of these increases supports the mechanism of action proposed for OV888.
Ovid Therapeutics plans to advance the drug into a Proof of Concept (PoC) Phase 2 trial for the treatment of cerebral cavernous malformations, a condition characterized by abnormal blood vessels in the brain and spinal cord. This next step in the drug's development is aimed at further evaluating its efficacy and safety in a more targeted patient population.
In other recent news, Ovid Therapeutics has reported a series of significant developments. The company announced positive Phase 1 study results for its lead compound, OV888/GV101, which is being developed to treat cerebral cavernous malformations. The trial successfully met its primary objectives of safety and tolerability, with the drug being well-tolerated at all dosages. Following these results, Ovid Therapeutics is preparing to advance to a Phase 2 clinical study later in the year.
In addition, Ovid Therapeutics experienced mixed results from phase 3 clinical trials for soticlestat, a treatment for epilepsy syndromes. Despite not meeting primary goals in trials for Dravet and Lennox-Gastaut syndromes, the drug showed promising results in several secondary endpoints. The company, in collaboration with its partner Takeda, is currently assessing the next steps for soticlestat's development.
Analyst firm H.C. Wainwright maintained a Buy rating on Ovid Therapeutics, albeit with a reduced price target of $3.00. Similarly, TD Cowen, BTIG, and B.Riley also kept their Buy ratings, despite lowering their share target prices. In contrast, Oppenheimer downgraded the stock from Outperform to Perform.
InvestingPro Insights
As Ovid Therapeutics Inc (NASDAQ: OVID) progresses with its promising Phase 1 trial results, investors may find additional context through real-time data and insights from InvestingPro. The company's market capitalization currently stands at $58.6 million, reflecting the market's valuation of the company's potential. Despite the challenges of drug development, two analysts have revised their earnings upwards for the upcoming period, a positive signal for future performance. Additionally, the stock's recent price movements indicate significant volatility, with a notable 23.17% return over the last week, yet a steep decline over longer-term periods such as the last three, six, and twelve months.
InvestingPro Tips also highlight critical aspects of Ovid's financial health and market performance. The company holds more cash than debt, providing some financial flexibility as it moves into the Proof of Concept Phase 2 trial. Moreover, the Relative Strength Index (RSI) suggests the stock is currently in oversold territory, which could interest value-seeking investors. For those considering a deeper dive into Ovid's investment potential, InvestingPro offers additional tips. In fact, there are over 10 more InvestingPro Tips available, which can be accessed with the use of coupon code PRONEWS24 to get up to 10% off a yearly Pro and a yearly or biyearly Pro+ subscription.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.