Ovid Therapeutics Inc (OVID) PT Lowered to $4 at BTIG

BTIG analyst Thomas Shrader lowered the price target on Ovid Therapeutics Inc (NASDAQ: OVID) to $4.00 (from $5.00) while maintaining a Buy rating.

The analyst comments "We caught up with management and the overall approach seems appropriate for the current market with the team leaving no stone unturned to try to maximize the chances that future steps will be productive. The lead indication for OV350 will be psychosis associated with alpha-synuclean accumulation (PD and Lewy body dementia). These indications were chosen from the flotilla of inductions where reestablishing GABA function could be beneficial (such as status epilepticus) based on the availability of established regulatory pathways. The basic biology driving this approach is similarly established with the GABA pathway in PD and LBD patients showing reduced activity leading to oxidative stress and mitochondrial dysfunction. For OV329, topline biomarker data are expected in 3Q25. This readout is expected to benefit from the growing use of TMS in measuring gross neuronal excitability in the cortex of patients. Briefly, TMS (transcranial magnetic stimulation) induces low level firing of neurons and the threshold for this firing is closely regulated by GABA function. So we expect safety of various doses of OV329 along with a big-picture readout covering the ability of these doses to reduce the hyper-excitability of neurons in the human cortex. These data seem particularly informative given OV329 is a secondgeneration drug employing the same mechanism as Vigabatrin. The key difference is that based on a much higher target affinity, OV329 is expected to be active (dosing confirmed in 3Q25) at doses that do not accumulate in the patients eyes (known for OV329 and the cause of toxicity of Vigabatrin). Other programs. As reported by Takeda (TAK, Not Rated), the development of Soticlestat has been stopped. The program was fully transferred from Ovid - so return of the asset is not expected. The development of OV888 remains paused largely due to competitor readouts that employed enrichment strategies similar to those Ovid was planning that did not observe definitive efficacy signals. On the positive front, management continues to feel the FDA is open to adaptive designs in CCM trials."

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