Ovid Therapeutics (OVID) AI Stock Analysis

• Market Cap: $24.66M
• Dividend Yield: N/A
• Average Volume (3M): 435.02K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.83
• Revenue Growth: 44.50%
• EPS Growth: 49.72%
• Country: US
• Employees: 23
• Sector: Healthcare
• Sector Strength: 69
• Industry: Biotechnology
• EPS (TTM): -0.37
• Shares Outstanding: 71,075,005
• 10 Day Avg. Volume: 395,201
• 30 Day Avg. Volume: 435,019
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 53.38
• Price to Cash Flow (P/CF): -0.80
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: 1.13
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: 49.44
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $3.25
• Price Target Upside: 828.57% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 6

Ovid Therapeutics' overall score reflects significant financial challenges, including inconsistent revenue and ongoing losses, despite some improvements in reducing net deficits. The stock's technical indicators show bearish momentum, compounded by a negative P/E ratio, limiting its valuation appeal. While the addition of an experienced board member is a positive corporate event, it does not substantially offset the financial and technical concerns.

Positive Factors

Clinical Advancements

OV350 is the first candidate emerging from Ovid’s novel portfolio of KCC2 direct activators, exhibiting 100-1,000-fold higher potency for KCC2 compared to other peripheral K/Cs and NKCC1, limiting peripheral side effects.

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.

Negative Factors

Clinical Trial Delays

The initiation of the Ph2 PoC CCM study of '888 remains paused as OVID evaluates clinical design learnings from Ph2 competitor CCM programs.

Valuation Concerns

We accordingly revise some of our valuation assumptions, including reducing the probability of approval for OV888 to 15% from the prior 20%.

Ovid Therapeutics Business Overview & Revenue Model

Company Description

Ovid Therapeutics Inc., a biopharmaceutical company, develops impactful medicines for patients and families with neurological disorders in the United States. The company is developing OV101, a drug candidate, which is in Phase 2A clinical trials for the treatment of fragile X syndrome; OV329, a GABA aminotransferase inhibitor for the treatment of seizures associated with tuberous sclerosis complex and infantile spasms; and OV350, a small molecule for treating epilepsies. It also develops OV882, a short hairpin RNA gene therapy for the treatment of angelman syndrome; and OV815 for the treatment of kinesin-family of proteins associated neurological disorder. The company has license and collaboration agreements with Healx, AstraZeneca AB, H. Lundbeck A/S, and Northwestern University, as well as Marinus Pharmaceuticals, Inc. The company was incorporated in 2014 and is headquartered in New York, New York.

How the Company Makes Money

Ovid 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

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

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

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 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
566.00K	391.69K	1.50M	208.38M	12.62M
	Gross Profit
566.00K	391.69K	121.14K	208.38M	12.62M
	EBIT
-61.88M	-59.28M	-55.55M	124.21M	-81.43M
	EBITDA
-61.88M	-57.69M	-52.79M	124.40M	-81.12M
	Net Income Common Stockholders
-26.43M	-52.34M	-51.41M	122.83M	-80.73M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
53.08M	105.83M	129.00M	187.80M	72.03M
	Total Assets
92.17M	144.03M	155.27M	194.54M	75.93M
	Total Debt
1.34M	16.00M	16.54M	0.00	0.00
	Net Debt
-24.96M	-11.04M	-112.47M	-187.80M	-72.03M
	Total Liabilities
23.94M	56.23M	22.99M	14.80M	32.29M
	Stockholders Equity
68.23M	87.80M	132.27M	179.75M	43.63M
Cash Flow		Free Cash Flow
-56.03M	-45.92M	-56.65M	118.42M	-51.97M
	Operating Cash Flow
-55.96M	-45.78M	-55.23M	118.61M	-51.58M
	Investing Cash Flow
54.59M	-2.58M	-87.88M	-1.82M	34.65M
	Financing Cash Flow
622.00K	30.54M	180.66K	904.08K	47.07M

Ovid Therapeutics Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.35
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

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 0.35 is above the 20-day moving average (MA) of 0.30, below the 50-day MA of 0.42, and below the 200-day MA of 0.88, indicating a neutral trend. The MACD of -0.03 indicates Negative momentum. The RSI at 50.87 is Neutral, neither overbought nor oversold. The STOCH value of 88.18 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for OVID.

Ovid Therapeutics Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
IPA	54 Neutral	$20.59M	―	-121.65%	―	-0.71%	-169.29%
PULM	53 Neutral	$24.51M	―	-70.96%	―	6.96%	32.32%
Sector *	51 Neutral	$5.31B	3.39	-40.42%	2.90%	18.11%	2.25%
OVID	44 Neutral	$24.66M	―	-33.88%	―	44.50%	49.72%
CALC	39 Underperform	$20.22M	―	-121.42%	―	―	95.48%
CVM	37 Underperform	$24.43M	―	-227.76%	―	―	30.96%
TENX	27 Underperform	$24.06M	―	-35.17%	―	―	84.17%

Ovid Therapeutics Corporate Events

Ovid Therapeutics Expands Board with New Appointment

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.