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Ovid Therapeutics Inc (OVID)
NASDAQ:OVID

Ovid Therapeutics (OVID) AI Stock Analysis

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Ovid Therapeutics

(NASDAQ:OVID)

44Neutral
Ovid Therapeutics' overall stock score is driven by its financial performance, which shows significant revenue volatility and ongoing cash flow challenges. The technical analysis indicates weak market momentum and a downward trend, which compounds concerns about the company's financial health. Valuation metrics reflect the company's lack of profitability, further lowering the score. The recent positive corporate event, while promising, does not significantly alter the financial outlook at this time.
Positive Factors
Pipeline Development
Ovid Therapeutics has reprioritized its pipeline development efforts to focus more on the earlier-stage assets OV329 and OV350, while also preparing for the entry into the clinic of another candidate, OV4071.
Preclinical Data
Preclinical studies have shown a lack of accumulation in the retina, a key differentiator from previously approved GABA-AT inhibitor vigabatrin.
Negative Factors
Enterprise Value
Ovid currently trades at a negative enterprise value and is slated to deliver multiple potential value inflection points over the course of the next 12-15 months.
Valuation Assumptions
We accordingly revise some of our valuation assumptions, including reducing the probability of approval for OV888 to 15% from the prior 20%.

Ovid Therapeutics (OVID) vs. S&P 500 (SPY)

Ovid Therapeutics Business Overview & Revenue Model

Company DescriptionOvid Therapeutics (NASDAQ: OVID) is a biopharmaceutical company focused on developing therapies for rare neurological disorders. The company operates in the biotechnology sector and is dedicated to improving the lives of patients with unmet medical needs by advancing innovative medicines. Ovid's core products include a pipeline of drug candidates aimed at conditions such as Angelman syndrome and Fragile X syndrome, among other rare neurological disorders.
How the Company Makes MoneyOvid Therapeutics primarily makes money through the development and commercialization of its drug candidates. The company generates revenue through partnerships, licensing agreements, and potential sales of approved therapies. Key revenue streams include milestone payments and royalties from collaborations with larger pharmaceutical companies that assist in development and distribution efforts. Additionally, Ovid may receive research and development funding from government grants or private institutions invested in rare disease therapies. These partnerships and funding sources are significant contributors to Ovid's earnings as they provide financial support for ongoing research and development activities.

Ovid Therapeutics Financial Statement Overview

Summary
Ovid Therapeutics faces challenges with revenue consistency and profitability, evidenced by significant fluctuations in income and continued losses. Despite low debt levels, declining equity and persistent cash flow deficits highlight financial sustainability concerns. While there are signs of improvement in reducing net losses, the overall financial health remains precarious, requiring strategic adjustments to enhance revenue generation and cash management.
Income Statement
40
Negative
Ovid Therapeutics has experienced significant revenue volatility, with a decline from $208M in 2021 to $566K in 2024, indicating unstable revenue generation. The gross profit margin is consistently low, and negative EBIT and net income margins indicate ongoing losses. Recent improvements in reducing losses are positive, but profitability remains a challenge.
Balance Sheet
55
Neutral
The company's debt-to-equity ratio is low, reflecting modest leverage, which is a positive indicator of financial stability. However, the declining stockholders' equity and total assets over recent years raise concerns about the company's ability to sustain its operations long-term. The equity ratio suggests a fair proportion of equity financing, but high liabilities relative to assets pose risks.
Cash Flow
50
Neutral
Operating cash flow remains negative, reflecting ongoing cash burn, although there has been a slight improvement in free cash flow in 2024. The company has relied on financing activities to support cash flow, which could indicate difficulties in generating sufficient cash from operations. Continued negative free cash flow is a concern for long-term sustainability.
Breakdown
Dec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income StatementTotal Revenue
566.00K391.69K1.50M208.38M12.62M
Gross Profit
566.00K391.69K121.14K208.38M12.62M
EBIT
-61.88M-59.28M-55.55M124.21M-81.43M
EBITDA
-61.88M-57.69M-52.79M124.40M-81.12M
Net Income Common Stockholders
-26.43M-52.34M-51.41M122.83M-80.73M
Balance SheetCash, Cash Equivalents and Short-Term Investments
53.08M105.83M129.00M187.80M72.03M
Total Assets
92.17M144.03M155.27M194.54M75.93M
Total Debt
1.34M16.00M16.54M0.000.00
Net Debt
-24.96M-11.04M-112.47M-187.80M-72.03M
Total Liabilities
23.94M56.23M22.99M14.80M32.29M
Stockholders Equity
68.23M87.80M132.27M179.75M43.63M
Cash FlowFree Cash Flow
-56.03M-45.92M-56.65M118.42M-51.97M
Operating Cash Flow
-55.96M-45.78M-55.23M118.61M-51.58M
Investing Cash Flow
54.59M-2.58M-87.88M-1.82M34.65M
Financing Cash Flow
622.00K30.54M180.66K904.08K47.07M

Ovid Therapeutics Technical Analysis

Technical Analysis Sentiment
Negative
Last Price0.29
Price Trends
50DMA
0.52
Negative
100DMA
0.76
Negative
200DMA
0.91
Negative
Market Momentum
MACD
-0.07
Positive
RSI
23.34
Positive
STOCH
2.61
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For OVID, the sentiment is Negative. The current price of 0.29 is below the 20-day moving average (MA) of 0.40, below the 50-day MA of 0.52, and below the 200-day MA of 0.91, indicating a bearish trend. The MACD of -0.07 indicates Positive momentum. The RSI at 23.34 is Positive, neither overbought nor oversold. The STOCH value of 2.61 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for OVID.

Ovid Therapeutics Risk Analysis

Ovid Therapeutics disclosed 64 risk factors in its most recent earnings report. Ovid Therapeutics reported the most risks in the “Finance & Corporate” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks

Ovid Therapeutics Peers Comparison

Overall Rating
UnderperformOutperform
Sector (48)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
68
Neutral
$5.28B22.8419.71%52.97%
54
Neutral
$3.05B-214.50%29.01%23.93%
48
Neutral
$6.35B1.19-46.87%2.63%17.16%1.34%
46
Neutral
$451.14M-35.41%-39.92%7.38%
44
Neutral
$20.01M-33.88%44.50%49.72%
39
Underperform
$85.47M-98.10%-58.64%-40.05%
31
Underperform
$28.99M-554.86%
* Healthcare Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
OVID
Ovid Therapeutics
0.29
-2.93
-90.99%
SRPT
Sarepta Therapeutics
52.40
-73.99
-58.54%
RARE
Ultragenyx Pharmaceutical
32.14
-18.09
-36.01%
EDIT
Editas Medicine
1.00
-5.72
-85.12%
ARVN
Arvinas Holding Company
6.37
-31.28
-83.08%
BOLD
Boundless Bio Inc.
1.20
-11.26
-90.37%

Ovid Therapeutics Corporate Events

Executive/Board Changes
Ovid Therapeutics Expands Board with New Appointment
Positive
Mar 5, 2025

On March 1, 2025, Ovid Therapeutics expanded its Board of Directors by appointing Stelios Papadopoulos, Ph.D., as a Class I director, increasing the board size from five to six members. Dr. Papadopoulos, a seasoned executive with extensive experience in the biotechnology sector, joins the Audit and Compensation Committees, bringing valuable expertise from his previous roles at Exelixis, Inc., Regulus Therapeutics Inc., and other biopharmaceutical companies. This strategic appointment is expected to enhance Ovid’s governance and potentially strengthen its position in the biotechnology industry.

Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.