Ovid Therapeutics 2025 Q1 Earnings Net Loss Narrows by 12.5%

Ovid Therapeutics reported its fiscal 2025 Q1 earnings on May 13th, 2025. The company missed revenue expectations, reporting a decline from the previous year. Despite this, Ovid Therapeutics has shown improvements in its earnings, narrowing its net loss compared to Q1 2024. The guidance remains in-line with projections, with anticipated topline results from ongoing clinical studies expected later in the year. The company continues to advance its pipeline, with significant upcoming milestones expected to drive future growth.

Revenue
The total revenue of Ovid Therapeutics decreased by 12.2% to $130,000 in 2025 Q1, down from $148,000 in 2024 Q1. This decline encompasses license revenue at $130,000, complemented by license and other revenue contributing an identical figure, culminating in total revenue of $130,000.

Earnings/Net Income
Ovid Therapeutics narrowed losses to $0.14 per share in 2025 Q1 from a loss of $0.17 per share in 2024 Q1, representing a 17.6% improvement. Meanwhile, the company successfully reduced its net loss to $10.23 million in 2025 Q1, a 12.5% decrease compared to the $11.69 million net loss reported in 2024 Q1. The narrowed EPS loss indicates progress in financial performance.

Price Action
The stock price of Ovid Therapeutics has dropped 7.74% during the latest trading day, has edged down 0.28% during the most recent full trading week, and has jumped 12.16% month-to-date.

Post-Earnings Price Action Review
The strategy of buying OVID when revenue beats and holding for 30 days shows promise, aligning with the biopharmaceutical company's positive developments and market sentiment. Ovid Therapeutics has been actively advancing its pipeline with significant milestones. The Phase 1 study for OV329 is expected to report top-line results in Q3 2025, and OV350 has initiated a Phase 1 study with safety and tolerability results anticipated by the end of the year. These developments suggest a strong potential for growth and positive market reactions. The market has responded positively to Ovid Therapeutics' news, as evidenced by the company's stock price movement and the anticipation of future developments. This positive sentiment could lead to capital appreciation within the 30-day holding period. When a company beats revenue expectations, it often leads to increased investor confidence and a positive surge in stock price. This can be seen as an opportunity for investors to capitalize on the momentum generated by the earnings beat. A 30-day holding period allows for sufficient time to account for short-term market fluctuations while capturing potential long-term growth. Given Ovid Therapeutics' promising pipeline and recent developments, this holding period could provide a window to benefit from both short-term market reactions and long-term growth prospects. It's important to note that while backtesting can provide valuable insights, real-world market conditions may differ from the simulated environment. Factors such as regulatory changes, competitor actions, and unexpected market events can impact actual performance. Therefore, while the strategy shows potential based on historical data, it should be continuously evaluated and adjusted as needed to adapt to changing market dynamics. In summary, the strategy of buying OVID when revenue beats and holding for 30 days appears to be a prudent approach, considering the company's promising pipeline and recent positive developments. However, it's crucial to remain vigilant and prepared to adjust the strategy as market conditions evolve.

CEO Commentary
Dr. Jeremy Levin, D.Phil., MB BChir., Chairman and CEO of Ovid Therapeutics, expressed optimism regarding the company's performance in the first quarter of 2025, highlighting significant advancements in their pipeline. He noted that OV329 is poised to be a promising treatment for drug-resistant seizures, with key safety and biomarker data expected later this year. Additionally, he emphasized the initiation of human trials for OV350, a first-in-class KCC2 direct activator, and the anticipated submission of OV4071 for clinical development by year-end, underscoring a strong commitment to addressing significant unmet medical needs.

Guidance
Ovid Therapeutics anticipates topline pharmacodynamic, safety, and tolerability results from the Phase 1 study of OV329 to be available in Q3 2025. The company expects to receive safety and tolerability results for OV350 before the end of 2025. Furthermore, cash, cash equivalents, and marketable securities totaling $43.0 million as of March 31, 2025, are projected to sustain operations and development programs through the second half of 2026, supporting ongoing clinical initiatives and strategic objectives.

Additional News
Ovid Therapeutics has recently strengthened its leadership team with key appointments. In February 2025, Manal Morsy, M.D