On Thursday, B.Riley maintained a Buy rating on Ovid Therapeutics Inc (NASDAQ:OVID) stock with a $3.00 price target. The firm's commentary highlighted the recent preclinical findings related to Ovid's investigational drug OV329.
The data suggested that OV329, which is being evaluated for its potential to treat disorders related to GABA-AT enzyme deficiency, does not accumulate in the eye. This characteristic could significantly reduce the risk of ocular toxicity, a concern associated with similar treatments like vigabatrin.
The preclinical update also indicated that OV329 is rapidly cleared from the brain, which is a positive sign for the drug's safety profile. However, the effectiveness of OV329 in deactivating the GABA-AT enzyme in human tissues remains to be confirmed.
Ovid Therapeutics has announced plans to release more preclinical data from an ongoing head-to-head animal study in December 2024, with Phase I trial results expected the following year.
B.Riley's analysis suggests that OVID shares could see an appreciation of approximately 25% to 50% if the preclinical data is indicative of the drug's performance in humans, particularly if there is no evidence of ocular toxicity. The firm's optimism is also bolstered by the potential differentiation of OV329 from competitors like vigabatrin, reinforcing the Buy rating on Ovid Therapeutics' stock.
The company's research progress and upcoming milestones are likely to be closely monitored by investors as Ovid Therapeutics continues to develop its pipeline. The next significant updates from the company are anticipated in December 2024, with the release of additional preclinical data, and next year with the expected Phase I results.
In other recent news, Ovid Therapeutics presented promising findings from a preclinical study of its investigational drug, OV329, for epilepsy. The study's results suggest that OV329 may have a safer ocular profile compared to the current standard treatment, vigabatrin. The company is on track to complete a Phase 1 trial of OV329 in healthy volunteers by late 2024.
In addition to this, Ovid Therapeutics announced several significant changes in its executive team. Meg Alexander has been promoted to President and Chief Operating Officer, and Amanda Banks, M.D., has been appointed as the new Chief Development Officer. A consulting agreement has also been initiated with former General Counsel, Thomas Perone, to ensure a smooth transition of duties.
On the analyst front, BTIG and TD Cowen have maintained their Buy ratings on Ovid Therapeutics, citing the potential of the upcoming Phase 2 trial for OV888 and the preclinical promise shown by OV329. However, Oppenheimer has downgraded the stock from Outperform to Perform. These are some of the recent developments at Ovid Therapeutics.
InvestingPro Insights
As Ovid Therapeutics Inc (NASDAQ:OVID) navigates the development of its investigational drug OV329, financial metrics and analyst insights from InvestingPro paint a broader picture of the company's standing. With a market capitalization of $79.49 million, OVID is operating in a highly competitive space with significant growth potential, underscored by its impressive revenue growth of 186.16% over the last twelve months as of Q2 2024.
InvestingPro Tips highlight that while OVID holds more cash than debt, it is quickly burning through cash, which is a critical factor for investors to consider given the company's current research and development phase. Analysts have revised their earnings downwards for the upcoming period and anticipate a sales decline in the current year, reflecting the risks associated with drug development. Despite these challenges, the company's liquid assets exceed short-term obligations, providing some financial flexibility.
For investors seeking additional insights, there are 11 more InvestingPro Tips available for Ovid Therapeutics, which can be found at https://www.investing.com/pro/OVID. These tips could offer deeper analysis and further inform investment decisions as OVID progresses towards its upcoming clinical milestones.
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