Ovid Therapeutics Plunges 11.42% on Q2 Loss, Pipeline Progress

Ovid Therapeutics' stock price dropped 11.42% in pre-market trading on August 14, 2025, following the release of its second-quarter financial results and business updates.

Ovid Therapeutics reported a significant increase in revenue for the second quarter of 2025, driven by one-time licensing revenue. However, the company also reported a net loss of $4.68 million, a substantial increase from the previous year. This loss was attributed to increased research and development expenses, despite the company's efforts to cut costs and extend its cash runway.

The company's pipeline continues to advance, with key readouts anticipated in the near future. Ovid Therapeutics is focusing on its Phase 1 trials for OV329, a next-generation GABA-AT inhibitor for drug-resistant epilepsy, and OV350, a KCC2 direct activator for neuronal chloride balance. The success of these trials will be crucial for the company's future growth and potential partnerships.

Ovid Therapeutics has also taken steps to monetize its assets and reduce its net losses. In June 2025, the company struck a $7 million deal with Immedica Pharma AB to offload its ganaxolone royalty rights, providing much-needed capital without diverting focus from its core CNS pipeline. This transaction exemplifies the company's pivot toward fiscal discipline, prioritizing its most promising programs while shedding non-core assets.

Despite the challenges, Ovid Therapeutics remains optimistic about its future prospects. The company's focus on rare neurological disorders and its pipeline of promising candidates position it well in the competitive biotech landscape. However, the risks are significant, and the company's success will depend on the outcomes of its clinical trials and its ability to secure partnerships or monetize assets.