Buy Rating for Ovid Therapeutics Based on Promising Drug Trials and Strategic Partnerships

Analyst Ram Selvaraju from H.C. Wainwright reiterated a Buy rating on Ovid Therapeutics (OVID – Research Report) and keeping the price target at $9.00.

Ram Selvaraju’s rating is based on the promising developments surrounding Ovid Therapeutics’ drug soticlestat, which is undergoing pivotal trials for the treatment of Dravet syndrome (DS) and Lennox-Gastaut syndrome (LGS). Selvaraju highlights the expected availability of top-line data from these studies as a significant catalyst for the company. The analyst draws attention to the completion of patient enrollment in the SKYLINE and SKYWAY trials, anticipating that the data cleaning and analysis could be completed swiftly. The potential of soticlestat as a first-in-class inhibitor, along with the existing partnership with Takeda for development and commercialization, underpins the Buy rating. Selvaraju anticipates that the forthcoming data could show a meaningful impact on seizure frequency reduction and a favorable safety profile, which are key to the drug’s success.
Furthermore, Selvaraju points to additional catalysts that could bolster Ovid Therapeutics’ prospects, including the upcoming data from the Phase 1 trial of OV888. This compound is being evaluated for its safety profile, with expectations of progression to Phase 2 in the treatment of cerebral cavernous malformations (CCMs). The analyst also notes the potential of OV329, a GABA aminotransferase inhibitor, to demonstrate safety advantages over existing treatments. These factors, combined with the financial agreement with Takeda that includes significant milestone payments and royalties, position Ovid Therapeutics favorably in Selvaraju’s analysis, leading to the recommendation to Buy the stock.

Selvaraju covers the Healthcare sector, focusing on stocks such as MoonLake Immunotherapeutics, Axsome Therapeutics, and Urogen Pharma. According to TipRanks, Selvaraju has an average return of 5.5% and a 39.12% success rate on recommended stocks.

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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.