Ovid Therapeutics (OVID) AI Stock Analysis

• Market Cap: $114.65M
• Dividend Yield: N/A
• Average Volume (3M): 1.52M
• Price to Earnings (P/E): ―
• Beta (1Y): 2.36
• 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: 0.70
• Enterprise Value/Revenue: 12.19
• Enterprise Value/Gross Profit: 12.23
• Enterprise Value/Ebitda: -2.00
• 1Y Price Target: $4.17
• Price Target Upside: 159.01% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 8
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 51 Neutral
• Price Target: $1.50 ▼(-6.83% Downside)

Overall score is held back primarily by weak financial performance (large ongoing losses and significant cash burn with continued financing/dilution risk). Technicals are a relative positive with the stock trading above key moving averages and neutral-to-positive momentum, and a recent positive clinical/program update supports sentiment, but the negative earnings profile and lack of dividend limit valuation support.

Positive Factors

Pipeline Advancement - KCC2 Program

Human Phase 1 safety and mechanistic data for OV350 validate target engagement and de-risk first-in-class KCC2 modulation. Redirecting resources to a more potent oral candidate (OV4071) and advancing it to Phase1/1b in 2026 strengthens the company’s long-term development trajectory and commercial potential in neuropsychiatric indications.

Manageable Leverage

A modest debt-to-equity ratio reduces near-term interest burden and refinancing pressure, preserving flexibility to fund R&D. For a clinical-stage biotech, manageable leverage lowers the probability that debt servicing will crowd out development spend, supporting sustained pipeline progress over months.

Partnership-driven Funding Model

Reliance on partnerships, upfronts, milestones and potential royalties provides staged, non-dilutive (or less-dilutive) funding aligned to development milestones. This model can extend runway, transfer risk, and enable continued R&D investment without immediate commercial revenues.

Negative Factors

Heavy Cash Burn

Sustained negative operating and free cash flow of roughly -$38M TTM indicates the company must secure external financing to maintain programs. Persistent burn elevates dilution and refinancing risk and constrains ability to fund multiple mid-stage studies without new capital over the 2–6 month horizon.

Large Ongoing Net Losses

Material and recurring net losses undermine internal funding capacity and erode shareholder equity. Without commercialization or large partner milestones, continued negative results make the path to profitability uncertain and heighten dependence on capital markets or partner financing.

Capital Structure & Dilution Risk

Approval to boost authorized shares and enable new issuances, combined with equity having declined to a small base, signals elevated dilution risk. This structural change increases the likelihood of future equity fundraising or dilutive issuances to support clinical programs, affecting long-term shareholder value.

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: 1.61
• 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 1.61 is below the 20-day moving average (MA) of 1.65, above the 50-day MA of 1.54, and above the 200-day MA of 0.93, indicating a neutral trend. The MACD of 0.03 indicates Positive momentum. The RSI at 50.53 is Neutral, neither overbought nor oversold. The STOCH value of 20.79 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
IKT	54 Neutral	$207.37M	-2.95	-131.71%	―	-100.00%	79.01%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
OVID	51 Neutral	$114.65M	-3.23	-60.06%	―	946.61%	-11.30%
ZNTL	51 Neutral	$252.16M	-1.67	-49.18%	―	-33.76%	17.54%
SRZN	50 Neutral	$154.29M	-0.95	―	―	-63.96%	-28.50%
IRD	49 Neutral	$141.38M	-1.25	-338.75%	―	74.60%	-58.14%
BMEA	45 Neutral	$103.23M	-0.64	-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.

The most recent analyst rating on (OVID) stock is a Buy with a $3.00 price target. To see the full list of analyst forecasts on Ovid Therapeutics stock, see the OVID Stock Forecast page.

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.

The most recent analyst rating on (OVID) stock is a Buy with a $3.00 price target. To see the full list of analyst forecasts on Ovid Therapeutics stock, see the OVID Stock Forecast page.