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On Tuesday, H.C. Wainwright analyst Raghuram Selvaraju adjusted the price target for Ovid Therapeutics Inc (NASDAQ:OVID) to $1.50, down from the previous $2.00, while maintaining a Buy rating on the company’s stock. Currently trading at $0.28 with a market capitalization of $20.29 million, InvestingPro analysis suggests the stock is undervalued relative to its Fair Value. The revision comes as Ovid continues its clinical developments, particularly with OV329, a next-generation GABA-AT inhibitor.
Ovid Therapeutics is currently conducting a Phase 1 study on OV329, with top-line results expected in the third quarter of 2025. The company maintains a strong financial position, with InvestingPro data showing a healthy current ratio of 4.93 and more cash than debt on its balance sheet. The study includes a high-dose single ascending dose/multiple ascending dose (SAD/MAD) cohort in healthy volunteers. This research aims to optimize dosing strategies for future Phase 2 programs. The current study is evaluating various factors, including pharmacodynamics (PD), target engagement, pharmacokinetics (PK), safety, and tolerability.
OV329 is being developed as a potential treatment for drug-resistant epilepsies (DREs). It is designed to increase levels of GABA, a neurotransmitter, to reduce seizures while offering a better safety and tolerability profile compared to vigabatrin, an existing first-generation GABA-AT inhibitor. Preclinical studies suggest that OV329 is significantly more potent than vigabatrin, offering synaptic and extrasynaptic inhibition without causing sedation at therapeutic doses.
Despite the reduced price target, H.C. Wainwright reiterated its Buy rating, anticipating positive outcomes from the early-stage clinical trials of OV329. While the stock has experienced a significant decline of over 90% in the past year, the analyst noted that Ovid Therapeutics is trading at a negative enterprise value but is expected to reach multiple potential value inflection points within the next 12 months. InvestingPro subscribers have access to 10 additional key insights about Ovid’s financial health and market position.
The company’s milestones include the initiation of a Phase 2a patient study to assess OV329 in drug-resistant epilepsies with an adaptive design, expected in the first quarter of 2026. Additionally, results from a first-in-human safety and exploratory biomarker study with OV350, Ovid’s first KCC2 direct activator, are anticipated in the fourth quarter of 2025. The company also plans to initiate human trials for OV4071, the first oral KCC2 direct activator, in the first half of 2026.
In other recent news, Ovid Therapeutics has seen several developments impacting its strategic direction and governance. The company has adjusted its focus towards advancing earlier-stage drug candidates, notably OV329 and OV350, while delaying the Phase 2 assessment of OV888. This strategic shift led H.C. Wainwright to lower its 12-month price target for Ovid Therapeutics from $3.00 to $2.00, although the firm maintained a Buy rating on the stock. Similarly, BTIG revised its price target down from $5.00 to $4.00, retaining a Buy rating, following discussions with the company’s management about their strategic approach.
The primary focus remains on OV350, targeting psychosis related to Parkinson’s disease and Lewy body dementia, with OV329’s top-line biomarker data anticipated in the third quarter of 2025. In governance news, Ovid Therapeutics expanded its Board of Directors by appointing Stelios Papadopoulos as a new member. Dr. Papadopoulos, a seasoned professional with extensive experience in the biopharmaceutical sector, joins as a Class I director, with his term concluding in 2027. His appointment was accompanied by updates to the compensation policy for non-employee directors, as detailed in an SEC filing. These recent developments reflect Ovid’s ongoing efforts to navigate its strategic and operational landscape effectively.
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