Ovid Therapeutics (OVID) AI Stock Analysis

• Market Cap: $82.49M
• Dividend Yield: N/A
• Average Volume (3M): 1.72M
• Price to Earnings (P/E): ―
• Beta (1Y): 2.21
• Revenue Growth: 1071.91%
• EPS Growth: -27.61%
• Country: US
• Employees: 23
• Sector: Healthcare
• Sector Strength: 45
• Industry: Biotechnology
• EPS (TTM): -0.06
• Shares Outstanding: 71,109,510
• 10 Day Avg. Volume: 1,427,736
• 30 Day Avg. Volume: 1,718,015
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: >-0.01
• Enterprise Value/Revenue: -0.12
• Enterprise Value/Gross Profit: -0.12
• Enterprise Value/Ebitda: 0.02
• 1Y Price Target: $3.40
• Price Target Upside: 193.10% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 7

• Rating: 54 Neutral
• Price Target: $0.50 ▼(-56.90% Downside)

Ovid Therapeutics' stock score is primarily influenced by its financial performance challenges, including revenue volatility and ongoing losses. The technical analysis indicates strong upward momentum, but the high beta suggests volatility. Valuation remains a concern with a negative P/E ratio and no dividend yield. Positive corporate events, such as the Nasdaq transfer and financial agreements, provide some stability and potential for future growth.

Positive Factors

Financial Stability

The company's cash reserves provide a buffer for operational expenses, ensuring financial stability and allowing focus on strategic growth initiatives.

Strategic Partnerships

The royalty monetization agreement provides non-dilutive funding, enhancing financial flexibility and supporting ongoing development projects.

Regulatory Compliance

The transfer to Nasdaq Capital Market offers additional time to meet listing requirements, supporting long-term market presence and investor confidence.

Negative Factors

Revenue Volatility

Significant revenue fluctuations indicate challenges in consistent income generation, impacting financial predictability and planning.

Negative Cash Flow

Persistent negative cash flow suggests difficulties in sustaining operations without external financing, posing risks to long-term viability.

Profitability Challenges

Ongoing losses and low profit margins highlight the need for strategic adjustments to achieve sustainable profitability and business growth.

Ovid Therapeutics Business Overview & Revenue Model

Company Description

Ovid Therapeutics Inc. is a biopharmaceutical company focused on developing innovative therapies for patients with rare neurological disorders. The company is dedicated to addressing significant unmet medical needs in conditions such as epilepsy, fragile X syndrome, and other neurodevelopmental disorders by leveraging its deep expertise in neuroscience and drug development. Ovid's core products include its pipeline of drug candidates, with a focus on developing treatments that can improve patient outcomes and quality of life.

How the Company Makes Money

Ovid Therapeutics generates revenue primarily through a combination of pharmaceutical product sales, collaborations, and research grants. The company focuses on advancing its drug candidates through various stages of clinical development, with the potential for significant revenue upon successful commercialization. Key revenue streams may include milestone payments from partnerships with larger pharmaceutical companies, royalties on sales of any approved products, and potential licensing agreements. Additionally, Ovid may benefit from grants and funding aimed at supporting research and development in the fields of neurology and rare diseases, enhancing its financial stability and growth potential.

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	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	6.65M	566.00K	391.69K	1.50M	208.38M	12.62M
Gross Profit	6.55M	566.00K	392.00K	1.50M	208.38M	12.62M
EBITDA	-41.30M	-57.77M	-57.01M	-54.17M	124.40M	-81.12M
Net Income	-38.18M	-26.43M	-52.34M	-54.17M	122.83M	-81.04M
Balance Sheet
Total Assets	77.43M	92.17M	144.03M	155.27M	194.54M	75.93M
Cash, Cash Equivalents and Short-Term Investments	38.35M	53.08M	105.83M	129.00M	187.80M	72.03M
Total Debt	1.38M	14.76M	16.00M	16.54M	0.00	0.00
Total Liabilities	21.64M	23.94M	56.23M	22.99M	14.80M	32.29M
Stockholders Equity	55.79M	68.23M	87.80M	132.27M	179.75M	43.63M
Cash Flow
Free Cash Flow	-40.06M	-56.03M	-45.92M	-56.65M	118.42M	-51.97M
Operating Cash Flow	-40.07M	-55.96M	-45.78M	-55.23M	118.61M	-51.58M
Investing Cash Flow	38.74M	54.59M	-2.58M	-87.88M	-1.82M	34.65M
Financing Cash Flow	51.00K	622.00K	30.54M	180.66K	904.08K	47.07M

Ovid Therapeutics Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 1.16
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• 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 1.16 is below the 20-day moving average (MA) of 1.20, above the 50-day MA of 0.83, and above the 200-day MA of 0.61, indicating a neutral trend. The MACD of 0.11 indicates Positive momentum. The RSI at 57.45 is Neutral, neither overbought nor oversold. The STOCH value of 24.84 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
OVID	54 Neutral	$82.49M	―	-52.77%	―	1071.91%	-27.61%
PULM	53 Neutral	17.86M	-2.25	0.00%	―	-96.76%	26.87%
HYFT	50 Neutral	71.54M	-2.55	-127.97%	―	-9.61%	20.36%
CALC	39 Underperform	44.71M	-2.01	0.00%	―	0.00%	15.19%
TENX	36 Underperform	28.52M	-6.77	0.00%	―	0.00%	95.87%
CVM	27 Underperform	70.58M	-0.90	0.00%	―	0.00%	42.29%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%

Ovid Therapeutics Corporate Events

Ovid Therapeutics Transfers Stock to Nasdaq Capital Market

Ovid Therapeutics received approval to transfer its common stock to the Nasdaq Capital Market, providing an additional 180 days to meet the minimum bid price requirement. The company is progressing with its clinical trials, including the OV329 Phase 1 study, and has signed a $7 million royalty monetization agreement to strengthen its financial position. Ovid’s cash reserves are expected to support operations into the second half of 2026, as it continues to explore strategic options to accelerate development and manage costs.

Ovid Therapeutics Approves Key Proposals at Annual Meeting

On July 9, 2025, Ovid Therapeutics held its annual stockholders meeting, where several key proposals were voted on. Stockholders elected directors for a three-year term, approved executive compensation, ratified KPMG LLP as the accounting firm, and authorized a potential reverse stock split, indicating strategic financial adjustments.

Ovid Therapeutics Sells Ganaxolone Royalties to Immedica

On June 23, 2025, Ovid Therapeutics entered into an agreement with Immedica Pharma AB to sell its future royalties related to ganaxolone, a medicine used for treating CDKL5 deficiency disorder, for $7.0 million. This transaction provides Ovid with non-dilutive funding to support its operations, while Immedica gains control over ganaxolone’s intellectual property rights, enhancing its focus on rare diseases.