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NEW YORK/STOCKHOLM - Ovid Therapeutics Inc. (NASDAQ:OVID), currently trading at $0.30 per share with a market capitalization of $21.45 million, has sold its future royalty rights related to ganaxolone sales outside China to Immedica Pharma AB for $7 million in cash, according to a statement released Wednesday. InvestingPro analysis suggests the company is currently undervalued based on its Fair Value assessment.
The non-dilutive funding will support Ovid’s ongoing operations, which is crucial as InvestingPro data shows the company is quickly burning through cash. The company recorded approximately $566,000 in ganaxolone royalty revenues in 2024, with total revenue for the last twelve months reaching $550,000.
Under the agreement, Immedica will acquire 100% of Ovid’s royalty rights and has also entered into an agreement to acquire or license Ovid’s global ganaxolone intellectual property portfolio. Immedica will assume financial responsibility for all costs related to the licensed IP once the amendment is finalized.
The royalty rights being acquired include those associated with Ovid’s 2022 exclusive patent license agreement with Marinus Pharmaceuticals, Inc., which entitled Ovid to receive royalties on ganaxolone sales for CDKL5 deficiency disorder (CDD) in the United States and Europe. Immedica completed its acquisition of Marinus in February 2025.
Ganaxolone is approved in the EU, Great Britain, the U.S., and China for the adjunctive treatment of epileptic seizures associated with CDD in patients 2 to 17 years of age, with continued use permitted in patients 18 years and older.
The transaction has no impact on Ovid’s current pipeline of programs, as the company has not been pursuing development of ganaxolone. Ovid focuses on developing small molecule medicines for brain conditions with significant unmet need. While the company maintains a strong current ratio of 4.93 and holds more cash than debt on its balance sheet, investors should note that analysts expect sales to decline in the current year. Get access to 8 more exclusive InvestingPro Tips for OVID by subscribing to InvestingPro.
Immedica, headquartered in Stockholm, is a pharmaceutical company focused on commercializing medicines for rare diseases and specialty care products, with a distribution network serving patients in more than 50 countries.
The information is based on a press release statement from both companies.
In other recent news, Ovid Therapeutics has been the subject of attention as H.C. Wainwright analyst Raghuram Selvaraju adjusted the company’s stock price target to $1.50 from a previous $2.00, while maintaining a Buy rating. This adjustment comes amidst Ovid’s ongoing clinical developments, particularly with its drug candidate OV329. The company is conducting a Phase 1 study on OV329, a next-generation GABA-AT inhibitor, with results expected in the third quarter of 2025. The study aims to optimize dosing strategies for future Phase 2 programs by evaluating pharmacodynamics, target engagement, pharmacokinetics, safety, and tolerability. Despite the reduced price target, the analyst remains optimistic about the early-stage clinical trials of OV329, which is being developed for drug-resistant epilepsies. Ovid is also planning to initiate a Phase 2a patient study for OV329 in early 2026. Additionally, results from a first-in-human safety and exploratory biomarker study with OV350 are expected in late 2025. The company is preparing to start human trials for OV4071 in the first half of 2026.
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