Ovid Therapeutics (OVID) AI Stock Analysis

• Market Cap: $104.68M
• Dividend Yield: N/A
• Average Volume (3M): 1.52M
• Price to Earnings (P/E): ―
• Beta (1Y): 2.35
• Revenue Growth: 946.61%
• EPS Growth: -11.30%
• Country: US
• Employees: 23
• Sector: Healthcare
• Sector Strength: 45
• Industry: Biotechnology
• EPS (TTM): -0.17
• Shares Outstanding: 71,212,360
• 10 Day Avg. Volume: 1,191,591
• 30 Day Avg. Volume: 1,521,247
• PEG Ratio: 0.05
• Price to Book (P/B): 0.97
• Price to Sales (P/S): 116.97
• P/FCF Ratio: -1.18
• Enterprise Value/Market Cap: 0.77
• Enterprise Value/Revenue: 12.19
• Enterprise Value/Gross Profit: 12.23
• Enterprise Value/Ebitda: -2.00
• 1Y Price Target: $4.43
• Price Target Upside: 201.36% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 9
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 52 Neutral
• Price Target: $1.50 ▲(2.04% Upside)

Ovid Therapeutics' overall stock score is primarily influenced by its financial performance challenges, including revenue volatility and ongoing losses. However, positive corporate events, such as successful drug development and significant financing, provide a boost. Technical indicators suggest mixed momentum, and valuation remains a concern due to negative earnings.

Positive Factors

Innovative Drug Development

Successful Phase 1 results for OV350 demonstrate Ovid's innovative approach in developing first-in-class therapies, potentially enhancing its market position in treating neurological disorders.

Strong Financial Backing

The significant private placement strengthens Ovid's financial position, enabling sustained investment in R&D and supporting long-term growth strategies.

Pipeline Advancement

Advancing OV4071 into clinical trials positions Ovid to potentially capture market share in treating neuropsychiatric conditions, supporting future revenue growth.

Negative Factors

Revenue Volatility

Significant revenue fluctuations highlight challenges in achieving stable income streams, which could impact long-term financial sustainability.

Ongoing Cash Burn

Persistent negative cash flow suggests reliance on external financing, which may limit financial flexibility and pose risks to long-term operations.

Declining Equity

Decreasing equity and assets could hinder Ovid's ability to sustain operations and invest in growth, affecting its long-term viability.

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 generates revenue through partnerships and collaborations with larger pharmaceutical companies, as well as potential future product sales following successful clinical trials and regulatory approvals. The company's revenue model includes upfront payments, milestone payments based on the achievement of development and commercial milestones, and royalties on future sales of products developed through these partnerships. Additionally, Ovid may receive funding through grants or government programs aimed at supporting research and development in rare diseases, contributing to its overall financial health.

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	6.61M	566.00K	392.00K	1.50M	208.38M	12.62M
Gross Profit	6.59M	566.00K	392.00K	1.50M	208.38M	12.62M
EBITDA	-40.29M	-57.77M	-57.01M	-54.17M	124.45M	-81.12M
Net Income	-36.33M	-26.43M	-52.34M	-54.17M	122.83M	-81.04M
Balance Sheet
Total Assets	63.85M	92.17M	144.03M	155.27M	194.54M	75.93M
Cash, Cash Equivalents and Short-Term Investments	25.60M	53.08M	105.83M	129.00M	187.80M	72.03M
Total Debt	13.76M	14.76M	16.00M	16.54M	0.00	0.00
Total Liabilities	19.15M	23.94M	56.23M	22.99M	14.80M	32.29M
Stockholders Equity	44.70M	68.23M	87.80M	132.27M	179.75M	43.63M
Cash Flow
Free Cash Flow	-37.96M	-56.03M	-45.92M	-56.65M	118.43M	-51.97M
Operating Cash Flow	-37.93M	-55.96M	-45.78M	-55.23M	118.61M	-51.58M
Investing Cash Flow	43.50M	54.59M	-2.58M	-87.88M	-1.82M	34.65M
Financing Cash Flow	28.00K	622.00K	30.54M	180.66K	904.08K	47.07M

Ovid Therapeutics Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 1.47
• 50DMA: Negative
• 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 1.47 is below the 20-day moving average (MA) of 1.57, below the 50-day MA of 1.50, and above the 200-day MA of 0.84, indicating a neutral trend. The MACD of <0.01 indicates Positive momentum. The RSI at 47.46 is Neutral, neither overbought nor oversold. The STOCH value of 22.69 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	52 Neutral	$104.68M	-2.88	-60.06%	―	946.61%	-11.30%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
ZNTL	46 Neutral	$101.15M	-0.67	-49.18%	―	-33.76%	17.54%
IKT	46 Neutral	$208.58M	-3.02	-131.71%	―	-100.00%	79.01%
IRD	44 Neutral	$137.93M	-1.16	-338.75%	―	74.60%	-58.14%
SRZN	43 Neutral	$186.51M	-1.00	―	―	-63.96%	-28.50%
BMEA	35 Underperform	$98.99M	-0.59	-209.00%	―	―	40.22%

Ovid Therapeutics Corporate Events

Ovid Therapeutics Advances Oral KCC2 Activators After OV350 Data

On December 18, 2025, Ovid Therapeutics reported Phase 1 results for OV350, the first known direct activator of the potassium-chloride cotransporter 2 (KCC2) to be dosed in humans, showing a favorable safety and tolerability profile with no treatment-related serious adverse events, predictable pharmacokinetics, and exploratory qEEG data consistent with central KCC2 modulation. The intravenous “tool” program achieved pharmacologically active exposure levels and provided key human safety and mechanistic data that underpin Ovid’s decision to halt further IV development of OV350 while accelerating its more potent, oral KCC2 activators, particularly OV4071, which is slated to enter Phase 1/1b testing in 2026 for psychosis associated with Parkinson’s disease and Lewy body dementia and potentially other neuropsychiatric conditions, bolstering the company’s positioning in first-in-class therapies targeting neural hyperexcitability.

Ovid Therapeutics Stockholders Approve Key Proposals

On December 11, 2025, Ovid Therapeutics held a special meeting where stockholders approved three key proposals. The first proposal increased the authorized shares of common stock from 125 million to 315 million. The second proposal allowed the conversion of Series B Preferred Stock and the exercise of Series A and B Warrants, while the third approved the issuance of securities to CEO Jeremy Levin. These approvals are significant for the company’s capital structure and compliance with Nasdaq rules.

Ovid Therapeutics Secures $175.1M in Private Placement

On October 2, 2025, Ovid Therapeutics entered into a Securities Purchase Agreement to issue and sell Series B convertible preferred stock and warrants in a private placement, potentially raising up to $175.1 million. The proceeds will be used for research and development, corporate expenses, and working capital. Additionally, Ovid announced positive results from a Phase 1 study of OV329, a GABA-aminotransferase inhibitor for drug-resistant epilepsies, showing strong inhibitory activity and a favorable safety profile, with plans to advance to Phase 2a trials.