Ovid Therapeutics has secured funding into 2029 and advanced two key epilepsy drug candidates, positioning it to deliver multiple clinical readouts in a sector seeing renewed M&A interest.
Ovid Therapeutics has secured funding into 2029 and advanced two key epilepsy drug candidates, positioning it to deliver multiple clinical readouts in a sector seeing renewed M&A interest.
Ovid Therapeutics Inc. (OVID) extended its cash runway into 2029 after raising over $113 million and reported progress for two distinct epilepsy drug candidates, including the start of a Phase 1 trial for its oral KCC2 activator, OV4071.
“Our first quarter reflected focused execution and continued progress across our pipeline of potentially transformative small molecule medicines for intractable brain conditions,” Meg Alexander, President and Chief Executive Officer at Ovid, said.
The company raised $60.0 million from a private placement financing in March and another $53.9 million from warrant exercises, ending the first quarter with $165.6 million in cash. Its next-generation GABA-aminotransferase (GABA-AT) inhibitor, OV329, showed a favorable safety profile up to 9 mg, clearing the way for a Phase 2 trial in focal onset seizures to begin in the second quarter of 2026.
With funding secured and two candidates advancing, Ovid is positioned to deliver key clinical data over the next two years. This progress comes as larger pharmaceutical companies show interest in acquiring biotechs with promising mid-stage assets, such as Merck & Co.'s rumored interest in Inhibrx Biosciences, highlighting the potential for smaller players to command significant value upon generating clear efficacy signals.
Ovid is advancing two different mechanisms to address neurological disorders. OV329 is a next-generation GABA-AT inhibitor, a validated mechanism for treating seizures. The company aims to provide a safer alternative to the first-generation drug, vigabatrin, which has its use limited by safety concerns. Following the positive safety data, Ovid plans to expand OV329's development into pediatric indications with high unmet need, including a proof-of-concept study in Tuberous Sclerosis Complex-associated seizures in the fourth quarter of 2026 and a study in infantile spasms in 2027.
Separately, the company has dosed the first healthy volunteer in a Phase 1 study of OV4071, the first-ever oral direct activator of the potassium-chloride cotransporter 2 (KCC2). This protein is crucial for balancing electrical signals in neurons, and its dysfunction is linked to seizures and other CNS disorders. Ovid plans a ketamine challenge study in the second half of 2026 to further assess the drug's mechanism, with initial target indications including Parkinson’s disease psychosis and schizophrenia.
The recent financing activities, which brought in a total of $113.9 million, have fortified Ovid's balance sheet. The company reported a net loss for the first quarter of $17.0 million, or $0.12 per share, on operating expenses of $17.8 million. The extended runway to 2029 allows the company to pursue its pipeline goals, including the multiple planned clinical studies for OV329 and OV4071, without the near-term pressure of seeking additional capital. This financial stability is critical in a biotech sector where clinical development is lengthy and expensive, and where well-funded companies with promising data can become attractive acquisition targets.
This article is for informational purposes only and does not constitute investment advice.
