Ovid Therapeutics Stock Rallied 18% Pre-Market – Here’s Why

Shares of Ovid Therapeutics Inc. (OVID) jumped 18% in the pre-market session on Friday after the company announced positive results from an early-stage trial of its OV329, as well as the pricing of a $175 million placement.

OV329 is being developed for the potential treatment of rare and treatment-resistant forms of epilepsy and seizures. It is believed to work by reducing the activity of GABA-AT, an enzyme that degrades GABA, an important inhibitory neurotransmitter in the brain. An increase in levels of GABA in the brain can potentially suppress neuronal hyperexcitability, known to cause seizures, the company said.

The early-stage study, which enrolled 68 healthy volunteers, was aimed at evaluating the safety, tolerability, pharmacokinetic, and pharmacodynamic activity of OV329. The drug demonstrated statistically significant inhibition of GABA-AT, matching or exceeding the inhibition demonstrated by therapeutic doses of first-generation GABA-AT inhibitor Vigabatrin (VGB), the company said. The drug also demonstrated a favorable safety and tolerability profile, it added.  

The company is now looking forward to initiating a mid-stage study evaluating OV329 in adult patients with drug-resistant focal onset seizures. The study is expected to start in Q2 2026 and be completed in mid-2027.

On Stocktwits, retail sentiment around OVID stock stayed within the ‘extremely bullish’ territory over the past 24 hours, while message volume stayed at ‘extremely high’ levels.

Separately, Ovid on Friday also announced the pricing of a private placement totaling up to $175 million in proceeds. The financing transaction included participation from new investors alongside existing ones, the company said.

The company stated that it intends to utilize the net proceeds from the initial closing of the financing deal, in conjunction with its existing cash, cash equivalents, and marketable securities, to fund research and development, general corporate expenses, and working capital requirements. It added that it expects its cash to fund its operating plan into 2028.

A Stocktwits user applauded the funding news as “huge.”

OVID stock is up 76% this year and approximately 45% over the past 12 months. 

Read also: Esperion Shares Rally After Patent Litigation Settlement For Cholesterol Drugs

For updates and corrections, email newsroom[at]stocktwits[dot]com.

Share

·

Add us on