On Monday, BTIG reaffirmed its Buy rating and $11.00 price target for Ovid Therapeutics Inc (NASDAQ:OVID), following a company call with experts in the field. During the BTIG Company Call Decoded Series, discussions with Dr. Stephen Moss from Tufts University School of Medicine and Ovid's Chief Medical Officer Dr. Manoj Malhotra provided insights into the pharmacology of GABA receptors and the treatment of epilepsy.
The neurosteroids, which are positive allosteric modulators (PAMs) of the GABA receptors, have not shown the expected results in treating major depressive disorder (MDD) and status epilepticus (SE). This has cast doubt on the hypothesis that targeting extra-synaptic GABA receptors with PAMs could produce a beneficial therapeutic window.
The complexity of the PAM approach stems from the various subtypes of GABA receptors, which are combinations of 19 different subunits in humans. While PAMs generally activate all these receptors, their dosage may be limited by GABA-related side effects such as fatigue and somnolence. Nevertheless, the PAMs' mechanism of action is considered more controlled compared to direct activators.
Ovid Therapeutics' molecules are distinguished by their lesser dependence on interactions with specific GABA receptors, as they do not directly bind to the GABA receptor.
This characteristic could potentially offer an advantage over the neurosteroid class of PAMs, which may be less effective due to receptor subclass specificity. The company's approach to drug development in this area remains a key point of interest for BTIG, as indicated by the maintained Buy rating and price target.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.