Ovid Therapeutics: Positive KCC2 Platform Progress and Underappreciated Pipeline Optionality Support Reiterated Buy Rating

H.C. Wainwright analyst Ram Selvaraju has reiterated their bullish stance on OVID stock, giving a Buy rating on December 18.

Ram Selvaraju has given his Buy rating due to a combination of factors tied to Ovid’s advancing KCC2 inhibitor platform and recent clinical progress. He views the positive Phase 1 results for OV350 as de-risking evidence for the broader KCC2 program, since the compound demonstrated acceptable safety, predictable pharmacokinetics, and signals of central nervous system activity at doses that appear pharmacologically meaningful. Importantly, no serious safety issues or dose-limiting toxicities emerged, and the adverse events observed were mostly manageable and linked to characteristics specific to OV350 rather than the mechanism as a whole. The findings support the rationale for moving forward with next-generation oral KCC2 activators, particularly OV4071, which is substantially more potent in preclinical models.

Selvaraju also highlights that Ovid has strategically refocused its resources on chronic, oral KCC2 candidates such as OV4071 and OV4041, positioning the company to pursue larger neurological markets like psychosis associated with Parkinson’s disease and dementia with Lewy bodies. With OV4071 expected to enter first-in-human studies following regulatory submission and anticipated trial initiation in 2026, he sees upcoming catalysts that could unlock additional value. He further notes that his current valuation does not yet factor in any contribution from the KCC2 activator pipeline, suggesting that successful clinical advancement could provide meaningful upside to his estimates. Taken together, the encouraging OV350 data, a more potent follow-on candidate approaching the clinic, and underappreciated pipeline optionality underpin his decision to reiterate a Buy rating and a $2 twelve-month price target on Ovid Therapeutics.

In another report released on December 18, BTIG also maintained a Buy rating on the stock with a $4.00 price target.