B.Riley assumes coverage on Ovid Therapeutics stock with Buy rating

Investing.com - B.Riley has assumed coverage on Ovid Therapeutics Inc (NASDAQ:OVID) with a Buy rating and a $3.00 price target, according to a research note released Friday. According to InvestingPro data, the stock appears undervalued based on its Fair Value analysis, with analysts setting price targets ranging from $1.50 to $4.00.

The coverage transfer follows B.Riley’s recent hybrid non-deal roadshow that provided insights into Ovid’s upcoming clinical data readouts, including OV329 Phase 1 healthy volunteer biomarker data expected next month and KCC2 first-in-human data in the fourth quarter of 2025. The company maintains a strong liquidity position with a current ratio of 4.93x and holds more cash than debt on its balance sheet.

B.Riley highlighted that Ovid’s KCC2 program represents a potential $1 billion-plus total addressable market opportunity that remains relatively unnoticed by investors, while management has expressed confidence in the upcoming OV329 biomarker data despite being blinded to results.

The research firm noted that Ovid stock has gained approximately 56% quarter-to-date, compared to the XBI biotech index’s 3.5% rise, suggesting growing investor belief that OV329 could demonstrate a potential "me-better" GABA-AT inhibitor profile without the ocular toxicity associated with FDA-approved vigabatrin.

Ovid currently has $43 million in cash, providing runway into mid-2026, with B.Riley suggesting that strong third-quarter data readouts could move shares approximately 90% higher to around $1 per share.

In other recent news, Ovid Therapeutics Inc. announced the sale of its future royalty rights related to ganaxolone sales outside China to Immedica Pharma AB for $7 million in cash. This non-dilutive funding is intended to support Ovid’s ongoing operations, following the company’s recording of approximately $566,000 in ganaxolone royalty revenues in 2024. In another development, H.C. Wainwright analyst Raghuram Selvaraju adjusted the price target for Ovid Therapeutics to $1.50 from the previous $2.00, while maintaining a Buy rating on the stock. The revision aligns with Ovid’s ongoing clinical developments, particularly concerning OV329, a next-generation GABA-AT inhibitor. Ovid is conducting a Phase 1 study on OV329, with top-line results anticipated in the third quarter of 2025. The study includes a high-dose single ascending dose/multiple ascending dose cohort in healthy volunteers. This research aims to optimize dosing strategies for future Phase 2 programs, evaluating factors such as pharmacodynamics, target engagement, pharmacokinetics, safety, and tolerability.

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