On Tuesday, H.C. Wainwright maintained a Buy rating with a $3.00 price target on Ovid Therapeutics Inc (NASDAQ:OVID) stock, following the announcement of positive Phase 1 study results for its lead compound.
Ovid Therapeutics, in collaboration with Graviton, revealed the successful completion of a Phase 1 healthy volunteer study for OV888/GV101, a drug designed to treat cerebral cavernous malformations (CCM). The study aimed to assess the safety, tolerability, and pharmacokinetic profile of the compound.
The trial was a single-center, double-blinded, randomized, and placebo-controlled study that tested multiple ascending doses of OV888/GV101 in capsule form. Over a span of seven days, healthy adult participants received daily doses of the drug in varying amounts, ranging from 100mg to 600mg. The primary objectives of safety and tolerability were met, with the drug being well-tolerated at all dosages.
There were no serious adverse events (SAEs) reported, and none of the participants reached the trial's criteria for discontinuation, except for one subject who left the study early due to mild headache and nausea. These symptoms resolved after the cessation of the drug. The most common clinical adverse event was a headache, which was experienced by 23% of participants but was transient and resolved on its own.
The pharmacokinetic properties of OV888 were successfully characterized through the study, with most clinical adverse events resolving within 24 hours and all clearing up within the study duration. Importantly, no adverse events were reported in the placebo group. Following these results, Ovid Therapeutics and Graviton are preparing to advance to a Phase 2 clinical study in CCM later in the year.
In other recent news, Ovid Therapeutics has experienced a series of adjustments in its stock ratings and price targets following mixed results from phase 3 clinical trials for soticlestat, a treatment for epilepsy syndromes. TD Cowen maintained its Buy rating on Ovid Therapeutics, despite the drug not meeting its primary goals in trials for Dravet and Lennox-Gastaut syndromes.
Analyst firm H.C. Wainwright reduced its price target for Ovid Therapeutics to $3.00, while maintaining a Buy rating. Similarly, BTIG and B.Riley also lowered their share target prices but kept their Buy ratings. In contrast, Oppenheimer downgraded the stock from Outperform to Perform.
These recent developments come in response to the outcomes of the company's clinical trials. Ovid Therapeutics and its partner Takeda are currently assessing the next steps for soticlestat's development.
Despite soticlestat narrowly missing the primary endpoint in the SKYLINE study for Dravet syndrome and failing to meet the primary endpoint in the SKYWAY study for Lennox-Gastaut syndrome, the drug showed promising results in several secondary endpoints.
The company has expressed its commitment to prioritizing its programs strategically to extend its cash runway into the first half of 2026. This decision aims to optimize resource allocation and focus on the most promising areas of its pipeline. The company's future steps and the response from regulatory bodies will be closely monitored by investors and industry observers alike.
InvestingPro Insights
As H.C. Wainwright reiterates its confidence in Ovid Therapeutics Inc (NASDAQ:OVID) with a bullish price target, a glance at the company's financial standing through InvestingPro data reveals a complex picture. With a market capitalization of $61.17 million and a striking revenue growth of 283.93% in the last twelve months as of Q1 2024, Ovid Therapeutics seems to be on an upward trajectory. However, it's essential to note the company's operating income margin at an alarming -13047.52%, indicating significant losses relative to its revenue.
InvestingPro Tips suggest a mixed sentiment: Ovid holds more cash than debt, a positive sign for financial stability, and two analysts have revised their earnings upwards for the upcoming period, reflecting optimism in the company's future performance. On the flip side, the stock's volatility is high, and analysts do not expect profitability this year. Additionally, the Relative Strength Index (RSI) indicates the stock is in oversold territory, which could either signal a buying opportunity or reflect underlying concerns.
Investors considering Ovid Therapeutics should also be aware that the company has experienced a significant return over the last week, with a 23.17% price total return, yet the stock has seen a substantial decline over the past year. For those interested in a deeper dive into Ovid's financials and future prospects, InvestingPro offers additional insights. Use the coupon code PRONEWS24 to get up to 10% off a yearly Pro and a yearly or biyearly Pro+ subscription, and discover the 16 additional InvestingPro Tips available for Ovid Therapeutics at: https://www.investing.com/pro/OVID.
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