Ovid Therapeutics (OVID) Q2 2024 earnings summary

Executive summary

• Focused on therapies for epilepsies and seizure-related brain conditions, with three active clinical programs and a robust pipeline targeting neuronal hyperexcitability.

• Announced a 43% workforce reduction in June 2024 and suspended the OV329 IV program to prioritize clinical programs and extend cash runway after negative Phase 3 results for soticlestat by Takeda.

• Appointed Dr. Amanda Banks as Chief Development Officer and expanded the Scientific Advisory Board.

• Maintained $77.0 million in cash and marketable securities as of June 30, 2024, supporting operations through late H1 2026.

• Pipeline includes OV888/GV101 (ROCK2 inhibitor, Phase 2 in CCM), OV329 (GABA-aminotransferase inhibitor, Phase 1), and KCC2 platform (preclinical, regulatory submission planned H2 2024).

Financial highlights

• Net income of $8.5 million for Q2 2024, compared to a net loss of $12.4 million in Q2 2023, driven by a $29.0 million gain from a fair value adjustment to the royalty monetization liability.

• Revenue was $169,000 for Q2 2024, up from $75,000 in Q2 2023, consisting of royalties from out-licensing.

• Research and development expenses increased to $12.6 million in Q2 2024 from $6.0 million in Q2 2023, including $1.6 million in one-time restructuring costs.

• General and administrative expenses were $8.1 million in Q2 2024, with a $1.8 million one-time restructuring expense.

• Cash, cash equivalents, and marketable securities totaled $77.0 million as of June 30, 2024.

Outlook and guidance

• Cash runway expected to fund operations through late H1 2026.

• Plans to achieve five clinical and regulatory milestones by late H1 2026.

• Anticipates continued operating losses as clinical programs advance and is exploring partnerships for select programs.

• Plans to initiate Phase 2 trial for OV888/GV101 and complete Phase 1 for OV329 in H2 2024.