Ovid Therapeutics: De-Risked KCC2 Platform and OV329 as Key Drivers of Long-Term Growth Support Buy Rating

Analyst Thomas Shrader of BTIG maintained a Buy rating on Ovid Therapeutics, retaining the price target of $4.00.

Thomas Shrader has given his Buy rating due to a combination of factors tied to both clinical de-risking and future growth potential. He views the initial human data for Ovid’s KCC2 modulation program as a crucial validation of a novel mechanism in controlling neuronal hyperexcitability, with a clean safety profile and EEG changes that align with the intended pharmacologic effect. Although the lead KCC2 molecule will be switched, Shrader emphasizes that the true value lies in the breadth and quality of the KCC2 modulator platform acquired from AstraZeneca, and in the company’s clear path to advancing the more potent OV4071 into the clinic starting in 2026. He concludes that the KCC2 franchise, together with OV329, positions Ovid with multiple shots on goal in difficult seizure and neurodegenerative conditions.

Shrader highlights OV329 as the near-term driver of value, viewing it as a potential step-change versus vigabatrin, a widely used but highly toxic therapy for refractory seizures. Early data show OV329 matching or exceeding vigabatrin on key neurophysiological biomarkers at exposures that have so far been associated with excellent safety, supporting higher dosing and more aggressive clinical exploration. He expects upcoming trials, including a Phase 2a in treatment-resistant epilepsies and an open-label seizure reduction study, to further validate OV329’s differentiated profile and justify its use earlier in the treatment course. Under his DCF-based valuation framework, the combination of a de-risked mechanism, multiple late-preclinical and early-clinical assets, and a sizable market opportunity in refractory seizure disorders underpins his Buy recommendation on OVID shares.

Shrader covers the Healthcare sector, focusing on stocks such as Gain Therapeutics, Aldeyra Therapeutics, and Harrow Health. According to TipRanks, Shrader has an average return of 4.1% and a 38.11% success rate on recommended stocks.