Core Insights - Ovid Therapeutics reported a quarterly loss of $0.17 per share, which was worse than the Zacks Consensus Estimate of a loss of $0.15, marking an earnings surprise of -13.33% [1] - The company generated revenues of $0.13 million for the quarter ended September 2025, missing the Zacks Consensus Estimate by 61.18% and down from $0.17 million a year ago [2] - Ovid Therapeutics shares have increased by approximately 44.6% since the beginning of the year, outperforming the S&P 500's gain of 16.4% [3] Financial Performance - The company has surpassed consensus EPS estimates two times over the last four quarters [2] - The current consensus EPS estimate for the upcoming quarter is -$0.09 on revenues of $0.24 million, and for the current fiscal year, it is -$0.44 on revenues of $6.82 million [7] Industry Outlook - The Medical - Biomedical and Genetics industry, to which Ovid Therapeutics belongs, is currently ranked in the top 34% of over 250 Zacks industries, indicating a favorable outlook [8] - Empirical research suggests a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can impact Ovid Therapeutics' stock performance [5] Future Expectations - The estimate revisions trend for Ovid Therapeutics was mixed ahead of the earnings release, resulting in a Zacks Rank 3 (Hold) for the stock, suggesting it is expected to perform in line with the market [6] - The upcoming earnings call will be crucial for understanding management's commentary on future earnings expectations [3][4]

Financial Performance - Net losses were $12.2 million and $27.1 million for the three and nine month periods ended September 30, 2025, with an accumulated deficit of $331.4 million[138][149]. - Total revenue for the three months ended September 30, 2025, was $132,000, down from $173,000 in the same period of 2024[158]. - Revenue for the nine months ended September 30, 2025, was $6.5 million, a significant increase from $0.5 million in the same period of 2024, primarily from royalties under the Marinus License Agreement[165]. - The net loss for the nine months ended September 30, 2025, was $27.1 million, compared to a net loss of $17.2 million in the same period of 2024[170]. - Other income for the nine months ended September 30, 2025, was $3.1 million, a decrease of $30.9 million compared to $34.0 million in 2024, primarily due to a prior year adjustment related to royalty monetization[168]. Cash and Liquidity - As of September 30, 2025, the company had $25.6 million in cash, cash equivalents, and marketable securities, and working capital of $22.0 million[138][149]. - The company expects to fund its operating plans for at least the next 12 months with available cash, cash equivalents, and marketable securities[169]. - Cash, cash equivalents, and marketable securities totaled $25.6 million as of September 30, 2025[185]. - Net cash used in operating activities was $27.9 million for the nine months ended September 30, 2025, compared to $45.9 million in 2024[178]. - Net cash provided by investing activities was $22.2 million for the nine months ended September 30, 2025, compared to $33.3 million in 2024, primarily due to the maturity of marketable securities[179]. - The company has no long-term debt and no material non-cancelable purchase commitments as of September 30, 2025[172]. Research and Development - The company has a differentiated pipeline with three novel mechanisms of action targeting seizures, with two programs currently in clinical trials and a third expected to begin in Q2 2026[137][140]. - Research and development expenses for the three months ended September 30, 2025, were $5.87 million, a decrease from $7.86 million in the same period of 2024[158]. - Research and development expenses for the nine months ended September 30, 2025, totaled $19.0 million, down $11.9 million from $30.8 million in 2024, mainly due to the pause of the OV888 (GV101) program[166]. - The company plans to initiate preclinical studies and clinical trials for additional drug candidates in the future[139]. - Positive topline Phase 1 trial data for the GABA-aminotransferase inhibitor, OV329, was announced, indicating strong inhibitory activity and a potential best-in-category safety profile[143]. Future Expectations - The company expects to incur significant expenses and operating losses for at least the next several years due to ongoing clinical trials and research and development activities[139]. - The company anticipates a gross proceeds of up to $175.1 million from a recent private placement, with initial net proceeds of $75.7 million received at closing[142]. Accounting and Compliance - There were no material changes to critical accounting policies during the three and nine month periods ended September 30, 2025, compared to the year ended December 31, 2024[184]. - The company has elected to adopt accommodations available to smaller reporting companies, including compliance exceptions from auditor attestation requirements[182]. - The company is classified as a smaller reporting company, allowing it to take advantage of scaled disclosures, including reduced executive compensation disclosures[181]. Investment Activities - The primary objectives of the company's investment activities are to ensure liquidity and preserve capital[185]. - The company intends to maintain its portfolio of cash equivalents and marketable securities in institutional market funds, including U.S. treasury and high-quality short-term corporate bonds[186]. - An immediate 100 basis point change in interest rates would not have a material effect on the fair market value of cash equivalents and marketable securities due to their short-term maturities[186]. - The company’s primary exposure to market risk is interest rate sensitivity, affected by changes in U.S. interest rates[186]. - The net cash provided by financing activities during the nine months ended September 30, 2025, resulted solely from proceeds from the exercise of stock options and employee stock purchase plan purchases[180].

Leadership Changes - Meg Alexander appointed as Chief Executive Officer effective January 1, 2026, with Dr. Jeremy M. Levin transitioning to Executive Chair of the Board[5]. Financial Performance - Revenue from royalty agreements was $132,000 for Q3 2025, down from $173,000 in Q3 2024[15]. - Total revenue for Q3 2025 was $132,000, a decrease of 23.7% from $173,000 in Q3 2024[18]. - Ovid reported a net loss of $12.2 million for Q3 2025, with a net loss per share of $0.17, compared to a net loss of $14.0 million and $0.20 per share in Q3 2024[15]. - Net loss for Q3 2025 was $12,158,000, compared to a net loss of $14,006,000 in Q3 2024, representing a 13.2% improvement[18]. - Net loss per share of common stock improved to $(0.17) from $(0.20) year-over-year[18]. - Other income improved to $365,000 from a loss of $780,000 year-over-year[18]. Expenses - Research and development expenses decreased to $5.9 million in Q3 2025 from $7.9 million in Q3 2024 due to organizational restructuring[15]. - Research and development expenses decreased to $5,870,000 from $7,855,000, a reduction of 25.2% year-over-year[18]. - General and administrative expenses increased to $6.8 million in Q3 2025 from $5.5 million in Q3 2024, driven by non-routine business development fees[15]. - General and administrative expenses increased to $6,785,000 from $5,544,000, an increase of 22.4% year-over-year[18]. - Total operating expenses were $12.7 million for Q3 2025, compared to $13.4 million for the same period in 2024[15]. Cash and Assets - Cash, cash equivalents, and marketable securities totaled $25.6 million as of September 30, 2025, augmented by the recent private placement[15]. - Cash, cash equivalents, and marketable securities decreased to $25,603,000 from $53,075,000 since December 31, 2024[20]. - Total assets decreased to $63,848,000 from $92,167,000 since December 31, 2024[20]. - Total stockholders' equity decreased to $44,698,000 from $68,226,000 since December 31, 2024[20]. - Working capital decreased to $22,028,000 from $45,418,000 since December 31, 2024[20]. Pipeline and Regulatory Milestones - OV329, a next-generation GABA-AT inhibitor, showed strong inhibitory activity in a Phase 1 study, supporting advancement to Phase 2 patient studies[5]. - Multiple pipeline and regulatory milestones anticipated in the next 18-24 months, including Phase 2a study for OV329 and proof-of-concept trial for OV4071[12]. Funding Activities - Ovid completed a private placement of up to $175 million, including approximately $81 million in initial closing, expected to extend cash runway into 2H 2028[5][11].

Core Insights - Ovid Therapeutics Inc. announced a CEO succession plan with Meg Alexander set to become CEO on January 1, 2026, while Dr. Jeremy M. Levin transitions to Executive Chairman [1][2][3] - The company reported third-quarter financial results and provided updates on its clinical pipeline, highlighting progress in its drug development programs [1][4][11] Leadership Transition - Meg Alexander has been with Ovid since 2021 and has played a key role in developing the company's pipeline and overseeing operations [2] - Dr. Levin expressed confidence in Alexander's leadership and emphasized the importance of continuity during the transition [3] Pipeline and Clinical Updates - Ovid's OV329, a next-generation GABA-aminotransferase inhibitor, is advancing to Phase 2 patient studies following positive Phase 1 results, demonstrating strong inhibitory activity [4][5][8] - The KCC2 direct activator portfolio is progressing, with OV350 expected to report first-in-human data in Q4 2025 and OV4071 anticipated to enter clinical trials in Q2 2026 [5][9][10] Financial Performance - For Q3 2025, Ovid reported total revenue of $132,000, a decrease from $173,000 in Q3 2024 [15] - Research and development expenses were $5.9 million, down from $7.9 million in the same period last year, while general and administrative expenses increased to $6.8 million from $5.5 million [15] - The net loss for Q3 2025 was $12.2 million, compared to a net loss of $14.0 million in Q3 2024, with a basic and diluted net loss per share of $0.17 [15][19] Funding and Financial Strategy - Ovid completed a private placement of up to $175 million, with an initial closing of approximately $81 million, expected to extend its cash runway into the second half of 2028 [5][11] - As of September 30, 2025, Ovid had $25.6 million in cash, cash equivalents, and marketable securities [15][21]

Core Viewpoint - Wall Street anticipates a year-over-year increase in earnings for Ovid Therapeutics, driven by higher revenues, but actual results compared to estimates will significantly influence the stock price [1][2]. Earnings Expectations - Ovid Therapeutics is expected to report a quarterly loss of $0.15 per share, reflecting a year-over-year change of +25% [3]. - Revenues are projected to be $0.34 million, representing a 100% increase from the same quarter last year [3]. Estimate Revisions - The consensus EPS estimate has been revised 5.26% higher in the last 30 days, indicating a reassessment by analysts [4]. - The Most Accurate Estimate for Ovid is lower than the Zacks Consensus Estimate, resulting in an Earnings ESP of -4.50%, suggesting a bearish outlook from analysts [12]. Earnings Surprise Prediction - The Zacks Earnings ESP model indicates that a positive or negative reading can predict deviations from consensus estimates, with positive readings being more reliable [9][10]. - Ovid's current Zacks Rank is 3, which complicates predictions of an earnings beat [12]. Historical Performance - In the last reported quarter, Ovid was expected to post a loss of $0.16 per share but actually reported a loss of -$0.06, achieving a surprise of +62.50% [13]. - Over the past four quarters, Ovid has beaten consensus EPS estimates two times [14]. Industry Context - Avidity Biosciences, a peer in the Zacks Medical - Biomedical and Genetics industry, is expected to report a loss of $1.05 per share, indicating a year-over-year change of -61.5% [18]. - Avidity's revenue is expected to be $2.5 million, up 6.8% from the previous year, but it also has a negative Earnings ESP of -9.35% [19][20].

Core Insights - Ovid Therapeutics Inc. has been identified as a promising investment opportunity with significant upside potential, particularly following a price target increase by B. Riley from $3 to $5, maintaining a Buy rating on the shares [1][2] Company Overview - Ovid Therapeutics Inc. is a biopharmaceutical company focused on developing effective treatments for patients with epilepsies and seizure-related neurological disorders in the United States [3] Recent Developments - The increase in price target is attributed to strong Phase 1 biomarker results for OV329, which demonstrated superior efficacy compared to vigabatrin without the associated ocular toxicity [1][2] - The favorable profile of OV329 supports its use in earlier lines of treatment, with the potential to expand its market to over $700 million [2] - The company has also secured a $175 million PIPE financing, which enhances its balance sheet and extends its cash runway into 2028 [2]

Core Insights - Ovid Therapeutics' shares increased by 39.2% following positive top-line data from an early-stage study of OV329, a next-generation GABA-AT inhibitor aimed at treating rare and drug-resistant epilepsies [1][6] - The therapy's mechanism involves blocking GABA-AT to enhance brain GABA levels, potentially positioning it as a best-in-class treatment for seizures [1][6] Study Details - The phase I study of OV329 included 68 healthy volunteers and assessed safety, tolerability, pharmacokinetics, and pharmacodynamics with doses ranging from 1 to 5 mg [2] - Participants received once-daily oral doses, with comprehensive safety and ophthalmic evaluations conducted throughout the study [2] Efficacy Results - OV329 demonstrated strong GABAergic activity, increasing inhibition by 53% on the abductor pollicis brevis (APB) muscle and 44% on the first dorsal interosseous (FDI) muscle at the 5 mg dose, compared to no significant change with placebo [7] - The therapy also significantly prolonged the cortical silent period (CSP) by up to 13 milliseconds at the 5 mg dose, indicating enhanced neural inhibition [8] Biomarker Analysis - Magnetic resonance spectroscopy (MRS) indicated a 7.13% increase in brain GABA levels after seven days of treatment, while placebo showed negligible change [9] - Exploratory EEG data suggested increased inhibitory brainwave activity, supporting OV329's GABA-enhancing mechanism [9] Safety Profile - The phase I study reported that OV329 had a favorable safety and tolerability profile, with treatment-related adverse events primarily mild to moderate [10] Future Plans - Following the encouraging phase I results, Ovid Therapeutics plans to initiate a phase IIa study of OV329 in adults with drug-resistant focal onset seizures in Q2 2026, with completion expected by mid-2027 [11] - The company aims to further define OV329's anti-convulsant profile through an open-label seizure study [11] Additional Pipeline - Ovid Therapeutics is also developing another investigational candidate, OV350, in a separate early-stage study for brain diseases [12]

Core Viewpoint - Momentum investing focuses on following a stock's recent price trends, aiming to buy high and sell higher, with the expectation that established trends will continue [1][2]. Company Overview: Ovid Therapeutics (OVID) - Ovid Therapeutics currently holds a Momentum Style Score of B and a Zacks Rank of 2 (Buy), indicating strong potential for performance [3][4]. - The stock has shown significant price increases, with shares up 42.98% over the past week and 49.59% over the past month, outperforming the Zacks Medical - Biomedical and Genetics industry, which rose 1.09% and 5.31% respectively [6]. - Over the past quarter, OVID shares have risen 354.32%, and are up 60% in the last year, compared to the S&P 500's increases of 7.36% and 19.22% [7]. Trading Volume - OVID's average 20-day trading volume is 4,860,304 shares, which serves as a bullish indicator when combined with rising stock prices [8]. Earnings Outlook - In the past two months, 5 earnings estimates for OVID have been revised upwards, while none have been lowered, leading to an increase in the consensus estimate from -$0.60 to -$0.49 [10]. - For the next fiscal year, 4 estimates have also moved upwards with no downward revisions [10]. Conclusion - Given the strong momentum indicators and positive earnings outlook, Ovid Therapeutics is positioned as a promising investment opportunity [12].

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Group 1 - The call is hosted by Victoria Fort, Senior Vice President of Corporate Affairs and Corporate Strategy, to discuss the Top Line OV329 Phase I readout [1][2] - Key executives participating in the call include Dr. Jeremy Levin (Chairman and CEO), Meg Alexander (President and COO), Jeff Rona (Chief Business and Financial Officer), and Zhong Zhong (Chief Scientific Officer) [2] - The company will be making forward-looking statements regarding future expectations, plans, and prospects, which are subject to risks and uncertainties [3]