Ovid Therapeutics Reports Q2 2025 Financials, $7mln Royalty Deal, Q3 2025 Results Expected

• Ovid Therapeutics reports Q2 2025 financial results. • Topline results from OV329 Phase 1 study on track for Q3 2025 readout. • $7 million royalty monetization agreement signed with Immedica Pharma. • OV4071, an oral KCC2 direct activator, completes IND-enabling package. • Expected first-in-human studies in Q2 2026. • Cash, cash equivalents, and marketable securities at $38.3 million as of June 30, 2025. • Expected to support operations and development programs into early 2H 2026.

Ovid Therapeutics (NASDAQ: OVID) recently reported its Q2 2025 financial results and provided key pipeline updates. The company ended the quarter with $38.3 million in cash, expected to fund operations into early 2H 2026. Key highlights include the anticipated Q3 2025 topline readout for OV329 Phase 1 trial, a next-generation GABA-AT inhibitor for treatment-resistant seizures, and a $7.0 million royalty monetization deal with Immedica Pharma AB for ganaxolone rights. The company is advancing its KCC2 activator portfolio, with OV350's safety data expected in Q4 2025 and OV4071, the first oral KCC2 activator, progressing toward first-in-human studies in Q2 2026.

Financial Performance
Ovid Therapeutics reported revenues of $6.3 million and a net loss of $4.7 million ($0.06 per share) for Q2 2025. Operating expenses decreased to $11.3 million compared to $20.7 million in Q2 2024. The company's financial performance demonstrates a focus on strategic cost-cutting while maintaining a robust pipeline of CNS drug candidates.

Pipeline Highlights
The company's OV329 program, targeting GABA-aminotransferase inhibition, is advancing toward a critical Phase 1 readout in Q3 2025. This compound aims to improve upon vigabatrin, a first-generation drug limited by serious ocular toxicity concerns, offering a potentially safer alternative for treatment-resistant epilepsies. More groundbreaking is Ovid's KCC2 activator portfolio, which represents a first-in-class approach to restoring inhibitory neuronal tone. The company is pioneering direct activation of this chloride transporter with multiple candidates: OV350 (IV formulation with data expected Q4 2025) and OV4071 (oral formulation entering human studies Q2 2026). The KCC2 program holds particular promise for conditions like psychosis in Parkinson's disease and Lewy body dementia.

Strategic Transactions
In June 2025, Ovid entered into an agreement with Immedica Pharma AB to sell its worldwide ganaxolone royalty rights and licensing for $7.0 million. This monetization covers 100% of royalty rights and includes the transfer or licensing of Ovid’s global ganaxolone intellectual property, with Immedica assuming associated patent maintenance and prosecution costs. This capital transaction strengthens Ovid’s balance sheet and extends its operational runway.

Future Milestones
Ovid expects its cash runway to support operations and clinical development programs into early second half 2026. Anticipated milestones include topline results for OV329 safety, tolerability, and biomarker data (Q3 2025); potential initiation of a Phase 2a patient study for OV329 in drug-resistant epilepsies (Q1 2026); results from the Phase 1 study of OV350 (Q4 2025); and the initiation of first-in-human studies for OV4071 (Q2 2026).

Conclusion
Ovid Therapeutics continues to make significant progress with its CNS drug pipeline, particularly with two potentially transformative programs. The company's strategic financial management and pipeline advancements position it for continued success in the CNS drug development space.

References:
[1] https://www.stocktitan.net/news/OVID/ovid-therapeutics-reports-business-updates-and-second-quarter-2025-m7i0mw95zcgp.html