Ovid Therapeutics appoints new board member and updates compensation policy

Ovid Therapeutics Inc . (NASDAQ:OVID), a biopharmaceutical company with a market capitalization of $36.71 million, announced on Monday the expansion of its Board of Directors and the appointment of a new member, alongside changes to its compensation policy for non-employee directors. According to InvestingPro analysis, the company currently trades below its Fair Value, maintaining a strong liquidity position with a current ratio of 5.66.

The company’s Board has increased from five to six directors with the addition of Stelios Papadopoulos, Ph.D., as a Class I director, whose term will conclude at the 2027 annual meeting of stockholders. Dr. Papadopoulos brings a wealth of experience, having co-founded Exelixis (NASDAQ:EXEL), Inc., and served as its Chair since 1998. He also has held positions at Cowen & Co., LLC, and PaineWebber, Incorporated.

Dr. Papadopoulos’s extensive background includes board roles at Regulus Therapeutics Inc (NASDAQ:RGLS)., Epikast, Inc., Graviton Bioscience Corporation, and previously at Biogen (NASDAQ:BIIB), Inc., and Eucrates Biomedical Acquisition Corp. His academic credentials include an M.S. in Physics, a Ph.D. in Biophysics, and an M.B.A. in Finance from New York University.

In alignment with Ovid’s non-employee director compensation policy, Dr. Papadopoulos will receive an annual base retainer of $45,000, an initial one-time option grant to purchase 90,000 shares of common stock, and an annual equity award of 45,000 options. These terms reflect the updated compensation policy effective from February 20, 2025. Furthermore, he has entered into the company’s standard indemnification agreement.

The company has stated that there are no existing arrangements or understandings behind Dr. Papadopoulos’s selection as a director, nor are there any reportable relationships or transactions involving him that would require disclosure under SEC regulations.

This expansion and appointment come as Ovid continues to focus on developing therapies for rare neurological diseases. Dr. Papadopoulos’s appointment and the updated compensation arrangements were detailed in an 8-K filing with the Securities and Exchange Commission. While the company holds more cash than debt on its balance sheet, InvestingPro analysis reveals rapid cash burn and analysts do not anticipate profitability this year. Discover 10+ additional exclusive insights and real-time metrics with InvestingPro’s comprehensive analysis tools.

In other recent news, Ovid Therapeutics has received a warning from the Nasdaq Stock Market LLC regarding non-compliance with the minimum bid price requirement, as its average closing bid price has been below $1.00 per share for 31 consecutive trading days. The company has until August 11, 2025, to address this issue, needing to maintain a closing bid price of at least $1.00 for 10 consecutive business days to regain compliance. If Ovid fails to meet the requirement, it may have the option to transfer its listing to the Nasdaq Capital Market, potentially executing a reverse stock split to meet conditions. Additionally, Oppenheimer analyst Francois Brisebois upgraded Ovid Therapeutics from Perform to Outperform, setting a price target of $4.00, citing renewed confidence in the company’s pipeline. The analyst highlighted the OV329 program, a next-generation GABA-AT inhibitor, as a promising development due to its increased potency and reduced risk of ocular toxicity compared to its predecessor. Brisebois noted that the OV329 program could target developmental and epileptic encephalopathies, leveraging the history of similar treatments. This upgrade reflects Oppenheimer’s positive outlook on Ovid’s drug development initiatives. These developments are part of the recent updates surrounding Ovid Therapeutics.

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