Ovid Therapeutics Inc. (OVID) jumped more than 26% in pre-market trading after the company unveiled new clinical data, announced expansion of its epilepsy programs, and disclosed a $60 million private placement. The combined updates signal accelerating momentum across Ovid's neurology pipeline and a strengthened financial position to support upcoming trials.
Ovid reported encouraging new findings from its next-generation GABA-aminotransferase inhibitor OV329, including favorable safety and tolerability from a 7 mg Phase 1 cohort, reinforcing its potential as a best-in-class therapy for drug-resistant epilepsies.
In parallel, the company is advancing plans for a Phase 2 randomized, placebo-controlled trial of OV329, which will evaluate two dose levels and measure seizure-reduction efficacy in people living with treatment-resistant focal onset seizures (FOS). Ovid anticipates initiating the Phase 2 study in the second quarter of 2026.
The company is now preparing to advance OV329 into a Phase 2 trial for focal onset seizures and an open-label proof-of-concept study, while also expanding development into tuberous sclerosis complex (TSC) seizures and infantile spasms (IS)- two severe pediatric epilepsies with limited treatment options.
A safety and signal-finding study in TSC is expected to begin in the fourth quarter of 2026, followed by a safety and signal-finding study in IS planned for 2027. Ovid is also developing a pediatric formulation to support these programs.
Ovid also received clearance to begin a Phase 1 study of OV4071, its first-in-class oral KCC2 direct activator, following regulatory approval in Australia. OV4071 is initially being developed for psychosis associated with Parkinson's disease and Lewy body dementia, with additional potential across broader neuropsychiatric disorders. A dedicated KCC2 R&D Day is scheduled for April 14, 2026.
The company also highlighted progress across its broader KCC2 portfolio, including OV350, which demonstrated Phase 1 validation supporting further development of both oral and injectable KCC2 activators.
To support these expanded programs, Ovid entered into a $60 million PIPE financing, led by Point72 with participation from major healthcare investors. The deal includes common stock priced at $2.01 per share and pre-funded warrants priced at $2.009, with closing expected on March 19, 2026. Proceeds will help fund OV329's new indications and broader pipeline development.
Ovid also noted that its Series A Warrants- triggered by OV4071's regulatory clearance- may generate up to $53.9 million in additional proceeds if exercised before their April 17, 2026, expiration.
On the financial front, for the fourth quarter, Ovid reported net income of $9.7 million, or $0.06 per share, compared with a net loss of $9.3 million, or $0.13 per share in Q4 2024, primarily due to $21.0 million gain from a long-term equity investment.
For the full-year 2025, revenue rose sharply to $7.3 million, compared with $0.6 million in 2024, driven by a one-time $7 million royalty-related payment. Net loss for 2025 narrowed to $17.4 million, or $0.23 per share compared with a $26.4 million, or $0.37 per share in 2024.
Ovid ended 2025 with $90.4 million in cash, cash equivalents and marketable securities. The company said this is expected to fund key studies for OV329 and OV4071 and operations into late 2028; exercise of outstanding warrants may further extend runway into 2029.
OVID has traded between $0.24 and $2.37 over the past year. The stock closed Tuesday's trading at $2.01, up 3.08%. In the pre-market session, the stock is at $2.53, up 26%, touching a new 52-week high.
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