Tonix Pharmaceuticals stock halted ahead of FDA approval news
On Monday, H.C. Wainwright adjusted its outlook on Ovid Therapeutics Inc (NASDAQ:OVID), reducing the 12-month price target to $2.00 from the previous $3.00. The stock, currently trading at $0.43 and near its 52-week low, has seen analyst targets ranging from $1.30 to $4.00. Despite this change, the firm maintained a Buy rating on the biopharmaceutical company’s stock, which InvestingPro analysis suggests is currently undervalued. The adjustment comes as Ovid Therapeutics shifts its strategic focus towards advancing its earlier-stage drug candidates.
The company is now prioritizing the development of its assets OV329 and OV350 and is preparing for the clinical entry of another potential treatment, OV4071. While InvestingPro data shows the company is quickly burning through cash, it maintains a strong current ratio of 5.32 and holds more cash than debt on its balance sheet. The decision to concentrate on these assets has led to a revision of some valuation assumptions by H.C. Wainwright analysts. As a result, the probability of approval for another of Ovid’s programs, OV888, has been lowered to 15% from 20%, impacting the price target.
Ovid Therapeutics has been actively working on a pipeline of drugs aimed at treating rare neurological disorders. The reprioritization suggests a strategic move to enhance the company’s long-term prospects by focusing on assets that may offer significant opportunities in the treatment of these conditions.
The company’s decision to delay the Phase 2 assessment of OV888 reflects a recalibration of its development priorities. By allocating resources to earlier-stage assets, Ovid Therapeutics aims to maximize its portfolio’s potential and address unmet medical needs in the neurology space.
The maintained Buy rating by H.C. Wainwright indicates a continued positive outlook on Ovid Therapeutics’ stock, despite the reduced price target. The stock has faced significant headwinds, declining 87% over the past year. Investors will be watching closely as the company advances its clinical programs and seeks to deliver on its strategic initiatives in the coming months. For deeper insights into Ovid’s financial health and 12 additional exclusive ProTips, visit InvestingPro.
In other recent news, Ovid Therapeutics Inc. reported several key developments. BTIG analyst Thomas Shrader adjusted the price target for Ovid Therapeutics to $4.00 from $5.00, maintaining a Buy rating, following discussions with the company’s management on their strategic plans. Meanwhile, Oppenheimer analyst Francois Brisebois upgraded Ovid’s stock rating from Perform to Outperform, also setting a $4.00 price target, citing renewed confidence in the OV329 program.
Ovid Therapeutics is facing a challenge as it received a notice from the Nasdaq Stock Market for non-compliance with the minimum bid price requirement, with a deadline set for August 11, 2025, to rectify this issue. The company is exploring options to meet the compliance standards to avoid potential delisting. Additionally, Ovid announced the expansion of its Board of Directors, appointing Stelios Papadopoulos, Ph.D., as a new member, and updated its compensation policy for non-employee directors.
In other updates, the development of the drug Soticlestat has been halted by Takeda, and the OV888 program is currently paused. Despite these setbacks, Ovid’s management remains optimistic about the potential for innovative clinical trial designs for cerebral cavernous malformations. These recent developments highlight Ovid Therapeutics’ ongoing efforts in navigating market challenges and advancing its drug pipeline.
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