Strong Buy: Ovid Therapeutics’ Promising Pipeline and Financial Stability

BTIG analyst Thomas Shrader maintained a Buy rating on Ovid Therapeutics (OVID – Research Report) yesterday and set a price target of $11.00.

Thomas Shrader has given his Buy rating due to a combination of factors, including the potential for Ovid Therapeutics to receive substantial milestone payments that could total up to $660 million. The expectation of these payments is tied to the success of their drug, Soticlestat, which demonstrates meaningful efficacy and a favorable safety profile. Additionally, the drug has a distinct mechanism of action (MOA) and is showing promise in its ability to enhance seizure control without exacerbating side effects when combined with standard treatments. Shrader’s optimism is further bolstered by Ovid’s ability to maintain treatment regimens that are crucial for patients with severe impairments, like those with Dravet Syndrome (DS) or Lennox-Gastaut Syndrome (LGS), without introducing negative side effects that could disrupt their overall function.

Financial stability is another key element in Shrader’s analysis. With a reported $90.3 million in cash and securities at the end of the first quarter of 2024, Ovid appears well-positioned to fund its operations into the first half of 2026. This financial runway is critical as the company continues to develop its pipeline, including OV329, a promising drug that targets GABA receptors with the potential to reduce side effects commonly associated with benzodiazepines. Furthermore, the anticipation of positive safety data and the potential for accelerated approval based on early readouts contribute to the Buy rating. Ovid’s proactive approach in developing next-generation molecules that avert ocular toxicity, a concern with current drugs in its class, also supports the optimistic outlook for the company’s future and stock valuation.

In another report released on April 30, B.Riley Financial also initiated coverage with a Buy rating on the stock with a $9.00 price target.

OVID’s price has also changed slightly for the past six months – from $3.520 to $3.230, which is a -8.24% drop .

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Ovid Therapeutics (OVID) Company Description:

Ovid Therapeutics, Inc. focuses on developing medicines for patients and families living with rare neurological disorders. The company was founded by Matthew During in April 2014 and is headquartered in New York, NY.