Ovid Therapeutics (OVID) AI Stock Analysis

• Market Cap: $20.66M
• Dividend Yield: N/A
• Average Volume (3M): 691.96K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.79
• Revenue Growth: 15.73%
• EPS Growth: 51.00%
• Country: US
• Employees: 23
• Sector: Healthcare
• Sector Strength: 55
• Industry: Biotechnology
• EPS (TTM): -0.14
• Shares Outstanding: 71,109,510
• 10 Day Avg. Volume: 1,216,510
• 30 Day Avg. Volume: 691,963
• PEG Ratio: 0.02
• Price to Book (P/B): 0.99
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -2.31
• Enterprise Value/Market Cap: 5.85
• Enterprise Value/Revenue: 52.25
• Enterprise Value/Gross Profit: 302.14
• Enterprise Value/Ebitda: -0.49
• 1Y Price Target: $2.83
• Price Target Upside: 843.33% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 5

• Rating: 45 Neutral
• Price Target: $0.50 ▲(66.67%Upside)

Ovid Therapeutics' stock score is primarily influenced by its weak financial performance, characterized by revenue instability and ongoing losses. The technical analysis indicates a bearish trend, and the valuation is challenged by a negative P/E ratio, reflecting current unprofitability. Without earnings call insights or corporate events to influence the score, the outlook remains cautious, with significant improvement needed in financial stability and profitability.

Positive Factors

Drug Development

OV329 shows no evidence of ocular accumulation in the current Phase 1 study, which is promising regarding its safety profile.

Drug Efficacy

OV329 is 100- to 1,000-fold more potent than vigabatrin in animals, delivers synaptic and extrasynaptic inhibition, and has a therapeutic index without appearing to induce sedation at therapeutic doses.

Negative Factors

Financial Projections

The 12-month price target has been reduced to $1.50 from $2.

Revenue Impact

Takeda discontinued development of Soticlestat in Dravet syndrome, and Ovid does not regain rights to the drug, impacting revenue projections.

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 significant revenue volatility and ongoing losses. Despite low debt levels, the declining equity and persistent cash flow deficits raise concerns about financial sustainability. Recent improvements in reducing net losses are positive, but the overall financial health remains precarious.

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
TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
548.00K	566.00K	391.69K	1.50M	208.38M	12.62M
	Gross Profit
400.00K	566.00K	-1.21M	121.14K	208.38M	12.62M
	EBIT
-57.02M	-61.88M	-59.28M	-55.55M	124.21M	-81.43M
	EBITDA
-56.40M	-61.27M	-57.69M	-54.17M	124.40M	-81.12M
	Net Income Common Stockholders
-24.97M	-26.43M	-52.34M	-54.17M	122.83M	-81.04M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
43.00M	53.08M	105.83M	129.00M	187.80M	72.03M
	Total Assets
81.65M	92.17M	144.03M	155.27M	194.54M	75.93M
	Total Debt
14.43M	14.76M	16.00M	16.54M	0.00	0.00
	Net Debt
-6.71M	-11.55M	-11.04M	-112.47M	-187.80M	-72.03M
	Total Liabilities
22.38M	23.94M	56.23M	22.99M	14.80M	32.29M
	Stockholders Equity
59.28M	68.23M	87.80M	132.27M	179.75M	43.63M
Cash Flow		Free Cash Flow
-49.58M	-56.03M	-45.92M	-56.65M	118.42M	-51.97M
	Operating Cash Flow
-49.55M	-55.96M	-45.78M	-55.23M	118.61M	-51.58M
	Investing Cash Flow
39.51M	54.59M	-2.58M	-87.88M	-1.82M	34.65M
	Financing Cash Flow
407.00K	622.00K	30.54M	180.66K	904.08K	47.07M

Ovid Therapeutics Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 0.30
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For OVID, the sentiment is Neutral. The current price of 0.3 is above the 20-day moving average (MA) of 0.30, above the 50-day MA of 0.30, and below the 200-day MA of 0.75, indicating a neutral trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 48.84 is Neutral, neither overbought nor oversold. The STOCH value of 23.08 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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	$38.90M	―	-121.65%	―	-0.71%	-169.29%
Sector *	54 Neutral	$5.34B	3.27	-45.10%	3.30%	16.80%	0.02%
PULM	53 Neutral	$31.77M	―	-93.19%	―	6.96%	32.32%
OVID	45 Neutral	$20.66M	―	-36.31%	―	15.73%	51.00%
CALC	39 Underperform	$23.75M	―	-134.15%	―	―	95.48%
TENX	36 Underperform	$25.35M	―	-39.78%	―	―	84.17%
CVM	27 Underperform	$12.84M	―	-238.64%	―	―	30.96%

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.