Wedbush analysts on Tuesday reiterated Ovid Therapeutics (OVID) at Outperform rating with a price target of $7. Analyst Laura Chico noted that the upcoming KCC2 R&D Event, scheduled for April 14, 2026, is an important catalyst to watch.
Ovid Therapeutics develops small-molecule medicines for brain disorders, including epilepsies and seizure-related neurological disorders, in the United States.
Earlier in March, Ovid announced that the company will host a KCC2-focused R&D Day on April 14, 2026, and Wedbush analysts took a deeper look at KCC2's role as a CNS target, OVID's initial efforts in the space, and how they think about the setup going forward.
Ovid's pipeline includes OV329, a next-generation GABA-aminotransferase inhibitor being developed as a potential therapy for treatment-resistant seizures and other undisclosed indications, as well as OV4071, being developed for multiple CNS disorders, including Parkinson's disease psychosis.
Ovid is also advancing a broader KCC2 library comprising multiple compounds with differentiated pharmacology across neurological conditions, including neuropsychiatric, neurodevelopmental, and neurodegenerative disorders.
Analyst Laura Chico said," Using Nuplazid as a benchmark, if OV4071 advances solely in the Parkinson's disease psychosis (PDP) indication, we see success adding at least approximately $3 and $5/share to our valuation."
When the analysts checked with OVID management ahead of the event, they expected the tone to shift this time toward the next-gen agent OV4071.
Commenting on what makes KCC2 attractive, the analyst said," Potential to deploy across a range of diseases, reducing toxicity/tolerability constraints and enhancing activity of existing drugs represent key rationale."
On the data ahead to be presented, the analyst added:" However, we do look for OVID to contrast preclinical OV4071 effects vs other antipsychotic medications to provide a better understanding of its profile."
In a Phase 1 clinical study, OV329 demonstrated a favourable safety and tolerability profile, with no treatment-related ocular findings observed. Ovid plans to advance OV329 into Phase 2 clinical studies in adults with treatment-resistant seizures.
In the recent financial report for the full year 2025, the firm reported $90.4 million in cash, cash equivalents, and marketable securities as of December 31, 2025, expected to fund key studies for OV329 and OV4071, and operations into late 2028. The firm noted that with the exercise of outstanding warrants, the runway may further extend to 2029.
Analyst Laura Chico said, "With OV329 efforts advancing in parallel, cash runway into 2029 and the stock trading near approximately $330M valuation, we continue to view OVID as a top long-term pick".
OVID has traded between $0.2430 and $2.72 over the last year. The stock closed Tuesday's trade at $2.56, up 11.30%.
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