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Ovid Therapeutics Inc . (NASDAQ:OVID), a pharmaceutical company currently trading at $0.65, has received a warning from the Nasdaq Stock Market LLC regarding its non-compliance with the minimum bid price requirement. The stock has faced significant challenges, declining over 82% in the past year according to InvestingPro data. On Monday, the company was notified that its common stock's average closing bid price had been below the required $1.00 per share for the past 31 consecutive trading days.
Despite the notice, Ovid's stock will continue to trade on the Nasdaq, provided it adheres to other listing standards. While InvestingPro analysis suggests the stock is currently undervalued, the company has until August 11, 2025, to address the bid price deficiency. To regain compliance, Ovid's stock must maintain a closing bid price of at least $1.00 for a minimum of 10 consecutive business days before the deadline. InvestingPro subscribers have access to 11 additional insights about OVID's financial health and market position.
Ovid is considering options to resolve the issue within the given timeframe. The company maintains a strong liquidity position with a current ratio of 5.66 and holds more cash than debt on its balance sheet. If the company fails to meet the requirement by the compliance date, it may be eligible for an additional 180-day period if it transfers its listing to the Nasdaq Capital Market, subject to meeting certain conditions and possibly executing a reverse stock split.
Should Ovid not achieve compliance or successfully transfer its listing, it risks receiving a delisting notification from Nasdaq. The company would then have the opportunity to appeal the decision to a Nasdaq Hearings Panel. However, there is no guarantee that an appeal would be successful or that Ovid will meet the minimum bid price requirement or other Nasdaq listing rules in the future.
This announcement, based on a press release statement, fulfills the company's obligation to publicly disclose the deficiency as per Nasdaq Listing Rule 5810(b) and Form 8-K requirements.
In other recent news, Ovid Therapeutics Inc has been upgraded from Perform to Outperform by Oppenheimer analyst Francois Brisebois, who also set a new price target of $4.00. This change in rating follows an extensive review of Ovid's pipeline, with a particular focus on the potential of its OV329 program. The program, seen as a promising next-generation GABA-AT inhibitor, is noted for its potency, which has proven to be over 100 times greater than the first-generation inhibitor, vigabatrin. The analyst also highlighted the therapeutic advantage of OV329, designed to avoid ocular toxicity, an issue with vigabatrin. While the specific indication for OV329 is still to be decided, developmental and epileptic encephalopathies could be a potential target. These recent developments underline the rationale behind Oppenheimer's upgrade and newfound optimism regarding Ovid Therapeutics' future drug development programs.
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