Ovid Therapeutics inks consulting deal with former executive

Ovid Therapeutics Inc . (NASDAQ:OVID), a biopharmaceutical company, has entered into a consulting agreement with Thomas Perone, its former General Counsel, Chief Compliance Officer, and Corporate Secretary. The consulting arrangement, effective from July 11, 2024, follows Mr. Perone's departure in connection with a workforce reduction. The agreement was formalized on Monday, as disclosed in a recent SEC filing.

The terms of the agreement stipulate that Mr. Perone will provide consulting services to assist in the transition of his duties until January 31, 2025, unless terminated earlier by either party. During this period, Mr. Perone will receive a monthly consulting fee, with the total compensation not exceeding $55,000. Additionally, Mr. Perone's equity awards that were outstanding as of his separation date will continue to vest throughout the consulting period.

Furthermore, the agreement includes post-termination restrictive covenants, such as non-solicitation clauses that will remain in effect until one year after the termination of the consulting agreement. These covenants are standard practice to protect the company's interests and prevent potential conflicts of interest post-employment.

Ovid Therapeutics, with its headquarters in New York, specializes in pharmaceutical preparations and is known for its focus on developing therapies for rare neurological disorders. The company's decision to retain Mr. Perone's expertise on a consultancy basis reflects an effort to ensure a smooth transition and continuity of operations.

The full details of the consulting agreement will be included as an exhibit in Ovid Therapeutics' Quarterly Report on Form 10-Q for the quarter ending June 30, 2024. This move comes as part of the company's broader strategy to manage its executive team and resources effectively. The information in this article is based on a press release statement.

In other recent news, Ovid Therapeutics' developmental drug OV329 shows promise in treating drug-resistant seizures, according to preclinical studies. The studies suggest that OV329, a GABA-aminotransferase (GABA-AT) inhibitor, could be more potent and safer than existing treatments. Ovid Therapeutics is developing OV329 for rare and treatment-resistant forms of epilepsy, including status epilepticus, tuberous sclerosis complex, and infantile spasms.

In the realm of analyst notes, TD Cowen has maintained its Buy rating on Ovid Therapeutics' shares, despite the company experiencing setbacks in its Phase 3 trials for soticlestat, a treatment for epilepsy syndromes. In contrast, Oppenheimer downgraded the stock from Outperform to Perform.

In addition to OV329, Ovid Therapeutics has been working on other novel treatments for epilepsies and related brain conditions. The company, in collaboration with its partners, continues to assess the next steps for the development of its various drugs. These recent developments underscore Ovid Therapeutics' ongoing efforts to strategically prioritize its programs and extend its cash runway into the first half of 2026.

InvestingPro Insights

As Ovid Therapeutics Inc. (NASDAQ:OVID) navigates its transition period with the consulting agreement of its former General Counsel, investors and stakeholders may find value in considering the company's financial health and market performance. According to real-time data from InvestingPro, Ovid Therapeutics holds a market capitalization of $68.46 million, with a notable revenue growth of 283.93% over the last twelve months as of Q1 2024. Despite this impressive growth, the company's operating income margin remains deeply negative at -13047.52%, reflecting significant challenges in profitability.

One InvestingPro Tip that stands out is the company's cash position, which suggests that Ovid holds more cash than debt on its balance sheet, providing some financial flexibility. Another tip to consider is that analysts have revised their earnings upwards for the upcoming period, indicating potential optimism about the company's future performance. However, with the stock experiencing high price volatility and significant price declines over the past year, investors should approach with caution. For those considering a deeper analysis, there are additional InvestingPro Tips available, providing a more comprehensive understanding of Ovid's market position and future prospects.

For those interested in the detailed analytics and further insights, the full suite of InvestingPro Tips for Ovid Therapeutics can be explored at https://www.investing.com/pro/OVID.

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